Retail-Office Redevelopment
For Sale
Contact for pricing
200 Market St, Chattanooga, TN 37403
Flexible zoning supports multiple uses, with front buildout up to six stories and rear buildout up to four.
Property Size7,660 SF
Price / SF$326.37
Days on Market363
Property Features for 200 Market St
General Information
Standard status
Active
Size
7,660 SF
Property subtype
RETAIL
Zoning
D-SH-6 and DRA-4
Listing Agency:
SVN | Second Story RE Management
(865) 804-8351
Listed By:
Chandler Hale · License ##339695
(865) 804-8351
Source:
Moodyscre
Added: Aug 19, 2025
Changed: Jul 26
Last Checked: Jul 26 at 4:54PM
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 SVN | Second Story RE Management
Investment Insights
Based on property information with market context.
This for-sale downtown building offers 7,660 square feet of flexible space with zoning that supports a range of uses. Zoning classifications are D-SH-6 at the front and DRA-4 in the rear, and the zoning description includes support for retail, restaurant, and office uses, along with potential residential conversion. The property also allows vertical buildout with the front portion capable of up to 6 stories and the rear portion up to 4.
Located at 200 Market St in Chattanooga, the asset sits along Market Street, described as one of the city’s prominent commercial corridors.
For buyers and investors, the site is positioned for redevelopment or retenanting based on the stated zoning flexibility and permitted buildout ranges between the front and rear portions of the building.
Located at 200 Market St in Chattanooga, the asset sits along Market Street, described as one of the city’s prominent commercial corridors.
For buyers and investors, the site is positioned for redevelopment or retenanting based on the stated zoning flexibility and permitted buildout ranges between the front and rear portions of the building.
Key Highlights
- Zoned D‑SH‑6 in front and DRA‑4 in the rear, supporting a wide range of uses including retail, restaurant, and office
- Front portion of the building can be built up to 6 stories
- Back portion of the building can be built up to 4 stories
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
$87,899
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
3.52%
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%
$1,757,980
$1.8M
Cap Rate 7%
$1,255,700
$1.3M
Cap Rate 9%
$976,656
$976.7K
Market Conditions
NOI Build-Up for 7,660 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
$137.9K $18.00/SF
− Vacancy
−$20.7K −$2.70/SF
EGI
$117.2K $15.30/SF
− OpEx
−$29.3K −$3.82/SF
NOI
$87.9K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /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%
$1,757,980
Cap Rate 7%
$1,255,700
Cap Rate 9%
$976,656
Alternative Uses
Best Use
Office B
$1.26M
$1.10M – $1.46M
NOI $87,899 @ 7.0% cap · market cap 3.52%
Second Best
Retail
$845.7K
$740.0K – $986.6K
NOI $59,196 @ 7.0% cap · market cap 2.37%
Theoretical Best
Office A
$1.69M
$1.48M – $1.97M
NOI $118,422 @ 7.0% cap · market cap 4.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,939
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37403, TN
5,666
Population
2,394
Households
2.4
Avg Household Size
26
Median Age
49%
College-Educated
95%
High-School Grad
1.7 sq mi
ZIP Area
3,333
Density / Sq Mi
$65,750
Median Household Income
$12,410
Median Earnings
$1,253
Median Rent
$444,000
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.
Frequently Asked Questions
What type of property is this?
Storefront property - Flexible zoning supports multiple uses, with front buildout up to six stories and rear buildout up to four.
Where is this storefront property located?
The property is located at 200 Market St Chattanooga, TN.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Zoned D‑SH‑6 in front and DRA‑4 in the rear, supporting a wide range of uses including retail, restaurant, and office; Front portion of the building can be built up to 6 stories; Back portion of the building can be built up to 4 stories
