Renovated Office
For Sale
$2,550,000
5880 Ridge Bend Rd, Memphis, TN 38120
Built in 2006 and updated in 2021, the property combines private offices, open workspace, conference rooms, and on-site parking.
Property Size10,000 SF
Days on Market48
Property Features for 5880 Ridge Bend Rd
General Information
Standard status
Active
Size
10,000 SF
Class
B
Total Parking Spaces
42
Property subtype
Office - General Office
Additional Details
Highway Access
Yes
Amenities
conference rooms
generator
attic storage
Building Details
Building Size
10,000 SF
Year Built
2006
Year Renovated
2026
Buildings
1
Listing Agency:
NAI Saig Company
Listed By:
Jeff Higdon, SIOR
Source:
Commercialcafe
Added: Jul 30
Changed: Sep 15
Last Checked: Sep 15 at 5:17AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of NAI Saig Company
Investment Insights
Based on property information with market context.
Located at 5880 Ridge Bend Rd in East Memphis, this 9,255-square-foot office building was built in 2006 and renovated in 2021. The layout includes exterior offices, open work space, several conference rooms, attic storage, and 42 parking spaces. A 22KW generator is also included.
The property provides access to Poplar Avenue and I-240, with Memphis International Airport and nearby dining, banking, and fitness amenities serving the surrounding business area. Its office configuration supports a range of professional workplace requirements, with a mix of private and collaborative spaces for day-to-day operations.
The property provides access to Poplar Avenue and I-240, with Memphis International Airport and nearby dining, banking, and fitness amenities serving the surrounding business area. Its office configuration supports a range of professional workplace requirements, with a mix of private and collaborative spaces for day-to-day operations.
Key Highlights
- 9,255‑square‑foot office building at 5880 Ridge Bend Rd
- Built in 2006 and renovated in 2021
- Exterior offices, open work space, and several conference rooms
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$153,000
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.00%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,060,000
$3.1M
Cap Rate 7%
$2,185,714
$2.2M
Cap Rate 9%
$1,700,000
$1.7M
Market Conditions
NOI Build-Up for 10,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$240.0K $24.00/SF
− Vacancy
−$36.0K −$3.60/SF
EGI
$204.0K $20.40/SF
− OpEx
−$51.0K −$5.10/SF
NOI
$153.0K $15.30/SF
Area
Memphis, TN
Vacancy
15.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,060,000
Cap Rate 7%
$2,185,714
Cap Rate 9%
$1,700,000
Alternative Uses
Best Use
Office B
$2.19M
$1.91M – $2.55M
NOI $153,000 @ 7.0% cap · market cap 6.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.96M
$2.59M – $3.45M
NOI $206,880 @ 7.0% cap · market cap 8.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,586
Businesses Nearby
Explore this area
Business Placement
Demographics for 38120, TN
14,536
Population
6,785
Households
2.1
Avg Household Size
44
Median Age
71%
College-Educated
98%
High-School Grad
9.6 sq mi
ZIP Area
1,514
Density / Sq Mi
$119,309
Median Household Income
$62,370
Median Earnings
$1,552
Median Rent
$421,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Memphis, TN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Built in 2006 and updated in 2021, the property combines private offices, open workspace, conference rooms, and on-site parking.
Where is this office building located?
The property is located at 5880 Ridge Bend Rd Memphis, TN.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: 9,255‑square‑foot office building at 5880 Ridge Bend Rd; Built in 2006 and renovated in 2021; Exterior offices, open work space, and several conference rooms
