Retail Shop on Highway
For Sale
$320,000
1802 Highway 81 N, Jonesborough, TN 37659
Versatile commercial shop with outdoor space and convenient access along Highway 81 South in Jonesborough, TN.
Property Size1,200 SF
Lot Size0.50 Acres
Price / SF$266.67
Days on Market127
Property Features for 1802 Highway 81 N
General Information
Standard status
Active
Size
1,200 SF
Lot size
0.50 Acres
Site & Location
Highway Access
Yes
Road Access
Yes
Listing Agency:
KW Johnson City
(423) 433-6500
Listed By:
Dustin Jeffers · License #378503
(423) 823-8962
Source:
Exprealty
Added: May 9
Changed: Sep 2
Last Checked: Sep 12 at 12:11PM
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 KW Johnson City
Investment Insights
Based on property information with market context.
The property is a 1,200 square foot commercial shop built for flexible use, with space suitable for retail, service, workshop, storage, or other light commercial needs. The offering includes an approximately 0.50-acre lot, with a surveyed adjustment that includes conveying a small portion to the adjoining neighboring property to create the final adjusted parcel. The exterior grounds provide room for parking and day-to-day operational needs such as equipment staging or potential future improvements, subject to zoning and approval.
Located along Highway 81 South in Jonesborough, the site is positioned for visibility and straightforward customer or delivery access. The property is described as being on a well-traveled corridor with convenient access to Jonesborough and the surrounding area, including Johnson City.
This is a practical fit for an owner-operator seeking an affordable commercial building with flexible interior layout and outdoor space, as well as for buyers evaluating a small retail or service property. The combination of a dedicated shop building and an outdoor lot supports day-to-day operations where customers, vehicles, or equipment need to be accommodated on-site, subject to any applicable zoning requirements and approvals.
Located along Highway 81 South in Jonesborough, the site is positioned for visibility and straightforward customer or delivery access. The property is described as being on a well-traveled corridor with convenient access to Jonesborough and the surrounding area, including Johnson City.
This is a practical fit for an owner-operator seeking an affordable commercial building with flexible interior layout and outdoor space, as well as for buyers evaluating a small retail or service property. The combination of a dedicated shop building and an outdoor lot supports day-to-day operations where customers, vehicles, or equipment need to be accommodated on-site, subject to any applicable zoning requirements and approvals.
Key Highlights
- 1,200 SF commercial shop at 1802 Highway 81 South in Jonesborough, TN 37659
- Approx. 0.50‑acre lot (subject to final survey), with a boundary adjustment to the adjoining property
- High‑visibility location along Highway 81 South with convenient access to Jonesborough and Johnson City
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
$18,773
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
5.87%
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%
$375,460
$375.5K
Cap Rate 7%
$268,186
$268.2K
Cap Rate 9%
$208,589
$208.6K
Market Conditions
NOI Build-Up for 1,200 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
$27.6K $23.04/SF
− Vacancy
−$829 −$0.69/SF
EGI
$26.8K $22.35/SF
− OpEx
−$8.0K −$6.70/SF
NOI
$18.8K $15.64/SF
Area
Washington County, TN
Vacancy
3.00%
Lease Rate
$23.04 /SF/Yr
Expense Ratio
30.00%
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%
$375,460
Cap Rate 7%
$268,186
Cap Rate 9%
$208,589
Alternative Uses
Best Use
Retail
$268.2K
$234.7K – $312.9K
NOI $18,773 @ 7.0% cap · market cap 5.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$506.1K
$442.8K – $590.4K
NOI $35,424 @ 7.0% cap · market cap 11.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37659, TN
29,313
Population
12,798
Households
2.3
Avg Household Size
45
Median Age
29%
College-Educated
92%
High-School Grad
126.9 sq mi
ZIP Area
231
Density / Sq Mi
$69,765
Median Household Income
$40,962
Median Earnings
$1,034
Median Rent
$241,700
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 Retail in South region
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Frequently Asked Questions
What type of property is this?
Storefront property - Versatile commercial shop with outdoor space and convenient access along Highway 81 South in Jonesborough, TN.
Where is this storefront property located?
The property is located at 1802 Highway 81 N Jonesborough, TN.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: 1,200 SF commercial shop at 1802 Highway 81 South in Jonesborough, TN 37659; Approx. 0.50‑acre lot (subject to final survey), with a boundary adjustment to the adjoining property; High‑visibility location along Highway 81 South with convenient access to Jonesborough and Johnson City
