Single-Tenant Medical Office
New
For Sale
$774,507
1702 E Lamar Alexander Pkwy, Maryville, TN 37803
Net-leased medical office occupied by Prisma Health along an established healthcare corridor.
Property Size2,740 SF
Lot Size0.56 Acres
Price / SF$282.67
Days on Market5
Property Features for 1702 E Lamar Alexander Pkwy
General Information
Standard status
Active
Size
2,740 SF
Lot size
0.56 Acres
Property subtype
Office Medical
Occupancy
100%
Additional Details
Cap Rate
9.75%
Amenities
Investment-grade tenant: Prisma Health carries an A+ credit rating (S&P Global), $7.4B in annual revenue, and operates 20 hospitals with 33,000+ employees
Recent tenant capital investment into the property, demonstrating continued commitment to the location
High-visibility location with 22,900+ VPD along E. Lamar Alexander Pkwy
Positioned within an established healthcare corridor near Blount Memorial Hospital (304 beds), surrounded by complementary medical and retail tenants (Dialysis Clinic Inc., Curtiss Dentistry, First Horizon, Food Lion, and more)
Affluent trade area: $90,381 average household income within 5 miles — a 21% premium over the Knoxville MSA average
Located in the growing Knoxville, TN MSA (931K population, projected 3.3% household growth 2024–2029)
Building Details
Building Size
2,740 SF
Year Built
1985
Tenancy
Single
Listing Agency:
Marcus & Millichap - Orlando
Listed By:
Spencer Koch · License #License(s): FL: SL3508957
(407) 557-3848
Source:
Marcusmillichap
Added: Sep 11
Changed: Sep 15
Last Checked: Sep 15 at 4:09AM
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 Marcus & Millichap - Orlando
Investment Insights
Based on property information with market context.
This 2,740-square-foot medical office building is configured for a single tenant and leased on a net basis to Prisma Health. The property occupies 0.56 acres and serves as part of the medical-services environment surrounding Blount Memorial Hospital.
Located at 1702 East Lamar Alexander Parkway, the building fronts a corridor reporting 22,900+ VPD. Prisma Health carries an A+ S&P credit rating and expanded into Tennessee through its December 2024 integration of Blount Memorial Hospital. That integration includes a minimum 10-year commitment to essential services and $275 million in planned capital investment across East Tennessee. The property is also identified with a 9.75% cap rate.
Located at 1702 East Lamar Alexander Parkway, the building fronts a corridor reporting 22,900+ VPD. Prisma Health carries an A+ S&P credit rating and expanded into Tennessee through its December 2024 integration of Blount Memorial Hospital. That integration includes a minimum 10-year commitment to essential services and $275 million in planned capital investment across East Tennessee. The property is also identified with a 9.75% cap rate.
Key Highlights
- 2,740‑square‑foot single‑tenant medical office building
- Net lease to Prisma Health, rated A+ by S&P
- 0.56‑acre property at 1702 East Lamar Alexander Parkway
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
$49,320
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
6.37%
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%
$986,400
$986.4K
Cap Rate 7%
$704,571
$704.6K
Cap Rate 9%
$548,000
$548.0K
Market Conditions
NOI Build-Up for 2,740 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
$82.2K $30.00/SF
− Vacancy
−$16.4K −$6.00/SF
EGI
$65.8K $24.00/SF
− OpEx
−$16.4K −$6.00/SF
NOI
$49.3K $18.00/SF
Area
Blount County, TN
Vacancy
20.00%
Lease Rate
$30.00 /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%
$986,400
Cap Rate 7%
$704,571
Cap Rate 9%
$548,000
Alternative Uses
Best Use
Office B
$704.6K
$616.5K – $822.0K
NOI $49,320 @ 7.0% cap · market cap 6.37%
Second Best
Healthcare Medical
$441.4K
$386.2K – $515.0K
NOI $30,899 @ 7.0% cap · market cap 3.99%
Theoretical Best
Office A
$1.10M
$965.2K – $1.29M
NOI $77,218 @ 7.0% cap · market cap 9.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
669
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37803, TN
33,463
Population
14,525
Households
2.3
Avg Household Size
46
Median Age
34%
College-Educated
93%
High-School Grad
87.7 sq mi
ZIP Area
382
Density / Sq Mi
$81,006
Median Household Income
$45,467
Median Earnings
$1,107
Median Rent
$312,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Net-leased medical office occupied by Prisma Health along an established healthcare corridor.
Where is this medical office space located?
The property is located at 1702 E Lamar Alexander Pkwy Maryville, TN.
What is the asking price?
The asking price for this property is $774,507.
What are key features of this property?
This property features: 2,740‑square‑foot single‑tenant medical office building; Net lease to Prisma Health, rated A+ by S&P; 0.56‑acre property at 1702 East Lamar Alexander Parkway
