Versatile Commercial Property Near
For Sale
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1728 Old Gray Station Road, Johnson City, TN 37615
Conveniently located flex space with office and warehouse areas.
Property Size3,982 SF
Price / SF$150.65
Days on Market155
Property Features for 1728 Old Gray Station Road
General Information
Standard status
Active
Size
3,982 SF
Property subtype
Special Purpose
Building Details
Year Built
1992
Listing Agency:
Coldwell Banker Security Real Estate
Listed By:
Jacqueline Lowe · License #TN 312937
Source:
Crexi
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:36AM
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 Security Real Estate
Investment Insights
Based on property information with market context.
This commercial property is located less than one mile from I-26 and under 0.5 mile from Highway 36, offering accessibility for various business uses. The building includes approximately 1,282 square feet of finished office space, featuring three private offices, an open office/work area, and two restrooms. Additionally, there is approximately 2,700 square feet of warehouse/storage space with an oversized garage bay, suitable for equipment storage, distribution, workshop use, or contractor needs. Recent improvements include a partially resealed roof, a new hot water heater, and window replacements. The total property size is 3,982 square feet. The property is suitable for professional or service operations.
Key Highlights
- Excellent Accessibility: Located less than one mile from I‑26 and under 0.5 mile from Highway 36.
- Versatile Space: Includes approximately 1,282 sq ft of finished office space and 2,700 sq ft of warehouse/storage space.
- Functional Office Layout: Features three private offices, an open office/work area, and two restrooms.
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
$29,196
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
4.87%
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%
$583,920
$583.9K
Cap Rate 7%
$417,086
$417.1K
Cap Rate 9%
$324,400
$324.4K
Market Conditions
NOI Build-Up for 3,982 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
$47.8K $12.00/SF
− Vacancy
−$2.9K −$0.72/SF
EGI
$44.9K $11.28/SF
− OpEx
−$15.7K −$3.95/SF
NOI
$29.2K $7.33/SF
Area
Washington County, TN
Vacancy
6.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
35.00%
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%
$583,920
Cap Rate 7%
$417,086
Cap Rate 9%
$324,400
Alternative Uses
Best Use
Office B
$839.6K
$734.7K – $979.6K
NOI $58,774 @ 7.0% cap · market cap 9.80%
Second Best
Flex RnD
$417.1K
$365.0K – $486.6K
NOI $29,196 @ 7.0% cap · market cap 4.87%
Theoretical Best
Office A
$1.68M
$1.47M – $1.96M
NOI $117,549 @ 7.0% cap · market cap 19.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
396
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37615, TN
22,151
Population
9,946
Households
2.2
Avg Household Size
43
Median Age
40%
College-Educated
95%
High-School Grad
37.6 sq mi
ZIP Area
589
Density / Sq Mi
$75,556
Median Household Income
$43,758
Median Earnings
$966
Median Rent
$261,200
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?
Flex space - Conveniently located flex space with office and warehouse areas.
Where is this flex space located?
The property is located at 1728 Old Gray Station Road Johnson City, TN.
What is the asking price?
The asking price for this property is $599,900.
What are key features of this property?
This property features: Excellent Accessibility: Located less than one mile from I‑26 and under 0.5 mile from Highway 36.; Versatile Space: Includes approximately 1,282 sq ft of finished office space and 2,700 sq ft of warehouse/storage space.; Functional Office Layout: Features three private offices, an open office/work area, and two restrooms.
