Updated Flex Space with Garage
For Sale
Contact for pricing
1832 Mccalla Ave, Knoxville, TN 37915
Leased commercial building combines professional offices with warehouse functionality.
Property Size4,050 SF
Price / SF$209.88
Days on Market12
Property Features for 1832 Mccalla Ave
General Information
Standard status
Active
Size
4,050 SF
Property subtype
RETAIL
Additional Details
Highway Access
Yes
Building Details
Tenancy
Single
Listing Agency:
RE/MAX PREFERRED PROPERTIES
(865) 694-8100
Listed By:
Steven George · License #346908
(865) 694-8100
Source:
Moodyscre
Added: Aug 20
Changed: Aug 29
Last Checked: Aug 30 at 11:29PM
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 RE/MAX PREFERRED PROPERTIES
Investment Insights
Based on property information with market context.
This flex property contains approximately 4,050 square feet of combined office and warehouse space, configured for professional workspace alongside garage-related operations. The building includes a functional garage bay and has received a new roof and new flooring throughout the office area.
The property is currently leased under a 5-year term, providing an established occupancy profile for a purchaser. Its location offers access to interstates and places the asset near Downtown Knoxville, the Old City, the surrounding warehouse district, and Covenant Health Park.
The adaptable office-warehouse arrangement can accommodate light industrial, distribution, service, appliance or parts operations, and other hybrid commercial uses identified for the property.
The property is currently leased under a 5-year term, providing an established occupancy profile for a purchaser. Its location offers access to interstates and places the asset near Downtown Knoxville, the Old City, the surrounding warehouse district, and Covenant Health Park.
The adaptable office-warehouse arrangement can accommodate light industrial, distribution, service, appliance or parts operations, and other hybrid commercial uses identified for the property.
Key Highlights
- Approximately 4,050 SF of office and warehouse space
- Current lease in place with a 5‑year term
- New roof and new flooring throughout the office area
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
$53,582
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
6.30%
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%
$1,071,640
$1.1M
Cap Rate 7%
$765,457
$765.5K
Cap Rate 9%
$595,356
$595.4K
Market Conditions
NOI Build-Up for 4,050 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
$85.1K $21.00/SF
− Vacancy
−$13.6K −$3.36/SF
EGI
$71.4K $17.64/SF
− OpEx
−$17.9K −$4.41/SF
NOI
$53.6K $13.23/SF
Area
Knoxville, 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%
$1,071,640
Cap Rate 7%
$765,457
Cap Rate 9%
$595,356
Alternative Uses
Best Use
Office B
$765.5K
$669.8K – $893.0K
NOI $53,582 @ 7.0% cap · market cap 6.30%
Second Best
Flex RnD
$503.6K
$440.7K – $587.6K
NOI $35,254 @ 7.0% cap · market cap 4.15%
Theoretical Best
Office A
$1.00M
$877.7K – $1.17M
NOI $70,217 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
814
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37915, TN
5,509
Population
3,722
Households
1.5
Avg Household Size
33
Median Age
17%
College-Educated
76%
High-School Grad
1.9 sq mi
ZIP Area
2,899
Density / Sq Mi
$22,236
Median Household Income
$29,433
Median Earnings
$519
Median Rent
$206,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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- Happy Days LLC — 2004 E Magnolia Ave, Knoxville, TN 37917
- Friends BBQ — 2580 E Magnolia Ave, Knoxville, TN 37914
Frequently Asked Questions
What type of property is this?
Flex space - Leased commercial building combines professional offices with warehouse functionality.
Where is this flex space located?
The property is located at 1832 Mccalla Ave Knoxville, TN.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Approximately 4,050 SF of office and warehouse space; Current lease in place with a 5‑year term; New roof and new flooring throughout the office area
