Commercial Office Building with
For Sale
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164 Locomotive Dr, Lenoir City, TN 37771
Commercially zoned office building on an 8.5-acre parcel with room for parking and expansion.
Property Size12,956 SF
Lot Size8.50 Acres
Price / SF$223.83
Days on Market157
Property Features for 164 Locomotive Dr
General Information
Standard status
Active
Size
12,956 SF
Lot size
8.50 Acres
Property subtype
Office
Zoning
c
Building Details
Buildings
1
Stories
1
Listing Agency:
Coldwell Banker Jim Henry & As Kingston
Listed By:
Kathy May-Martin · License #250474
(865) 603-7230
Source:
Crexi
Added: Apr 1
Changed: Sep 2
Last Checked: Sep 2 at 1:35AM
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 Coldwell Banker Jim Henry & As Kingston
Investment Insights
Based on property information with market context.
164 Locomotive Drive is a 14,000+ square foot commercial office building situated on an 8.50-acre parcel. The property is described as offering ample space for parking, expansion, or future development. With commercial zoning, the building is positioned for a range of professional and medical-administrative uses.
The property is noted to have convenient access to major corridors and proximity to Lenoir City and the greater Knoxville region, supporting regional operations. The offering is presented for both investors and owner-occupants seeking a well-positioned commercial asset with acreage and growth potential.
For additional details and to schedule a private tour, contact the listing team.
The property is noted to have convenient access to major corridors and proximity to Lenoir City and the greater Knoxville region, supporting regional operations. The offering is presented for both investors and owner-occupants seeking a well-positioned commercial asset with acreage and growth potential.
For additional details and to schedule a private tour, contact the listing team.
Key Highlights
- 14,000+ SF office building on an 8.5‑acre parcel
- Commercial zoning suitable for professional offices, medical, and administrative uses
- Ample room for parking, expansion, or future development
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
$171,408
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
5.91%
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%
$3,428,160
$3.4M
Cap Rate 7%
$2,448,686
$2.4M
Cap Rate 9%
$1,904,533
$1.9M
Market Conditions
NOI Build-Up for 12,956 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
$272.1K $21.00/SF
− Vacancy
−$43.5K −$3.36/SF
EGI
$228.5K $17.64/SF
− OpEx
−$57.1K −$4.41/SF
NOI
$171.4K $13.23/SF
Area
Loudon County, TN
Vacancy
16.00%
Lease Rate
$21.00 /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%
$3,428,160
Cap Rate 7%
$2,448,686
Cap Rate 9%
$1,904,533
Alternative Uses
Best Use
Office B
$2.45M
$2.14M – $2.86M
NOI $171,408 @ 7.0% cap · market cap 5.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.21M
$2.81M – $3.74M
NOI $224,626 @ 7.0% cap · market cap 7.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
166
Businesses Nearby
Explore this area
Business Placement
Demographics for 37771, TN
16,822
Population
7,573
Households
2.2
Avg Household Size
40
Median Age
19%
College-Educated
86%
High-School Grad
50.1 sq mi
ZIP Area
336
Density / Sq Mi
$62,338
Median Household Income
$33,330
Median Earnings
$946
Median Rent
$236,700
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Commercially zoned office building on an 8.5-acre parcel with room for parking and expansion.
Where is this office building located?
The property is located at 164 Locomotive Dr Lenoir City, TN.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: 14,000+ SF office building on an 8.5‑acre parcel; Commercial zoning suitable for professional offices, medical, and administrative uses; Ample room for parking, expansion, or future development
