Mixed-Use Building with Vacant Upper
For Sale
Contact for pricing
201 W Central Ave, La Follette, TN 37766
Main-level salon-spa occupancy, office space, and an unused upper floor create a flexible commercial configuration.
Property Size7,200 SF
Price / SF$166.67
Days on Market11
Property Features for 201 W Central Ave
General Information
Standard status
Active
Size
7,200 SF
Property subtype
RETAIL
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Buildings
1
Building Size
7,200 SF
Tenancy
Multi
Owner Occupied
Yes
Listing Agency:
Ayers Auction & Real Estate
(423) 562-4941
Listed By:
Melanie Nance · License #313477
(423) 562-4941
Source:
Moodyscre
Added: Aug 20
Changed: Aug 28
Last Checked: Aug 29 at 9:36AM
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 Ayers Auction & Real Estate
Investment Insights
Based on property information with market context.
This 7,200-square-foot mixed-use commercial building combines several existing elements within one property. A beauty salon and spa occupy part of the main level, while additional main-level space is used for offices. The entire upper floor is currently vacant, providing separate space within the building for future occupancy or expansion.
The property is located at 201 W Central Ave in Lafollette, TN 37766, with exposure along the main highway. Its current salon-spa occupancy, office component, and open upper level create a varied configuration for commercial users evaluating a multi-purpose building.
The property is located at 201 W Central Ave in Lafollette, TN 37766, with exposure along the main highway. Its current salon-spa occupancy, office component, and open upper level create a varied configuration for commercial users evaluating a multi-purpose building.
Key Highlights
- 7,200‑square‑foot commercial building
- Beauty salon‑spa tenant occupies a portion of the main level
- Owner offices are located on the main level
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
$78,624
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
6.55%
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%
$1,572,480
$1.6M
Cap Rate 7%
$1,123,200
$1.1M
Cap Rate 9%
$873,600
$873.6K
Market Conditions
NOI Build-Up for 7,200 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
$138.2K $19.20/SF
− Vacancy
−$12.4K −$1.73/SF
EGI
$125.8K $17.47/SF
− OpEx
−$47.2K −$6.55/SF
NOI
$78.6K $10.92/SF
Area
Campbell County, TN
Vacancy
9.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
37.50%
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%
$1,572,480
Cap Rate 7%
$1,123,200
Cap Rate 9%
$873,600
Alternative Uses
Best Use
Mixed Use
$1.12M
$982.8K – $1.31M
NOI $78,624 @ 7.0% cap · market cap 6.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.78M
$1.56M – $2.08M
NOI $124,831 @ 7.0% cap · market cap 10.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
413
Businesses Nearby
Explore this area
Business Placement
Demographics for 37766, TN
18,011
Population
9,721
Households
1.9
Avg Household Size
44
Median Age
12%
College-Educated
82%
High-School Grad
137.3 sq mi
ZIP Area
131
Density / Sq Mi
$46,692
Median Household Income
$31,379
Median Earnings
$747
Median Rent
$160,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Main-level salon-spa occupancy, office space, and an unused upper floor create a flexible commercial configuration.
Where is this mixed-use property located?
The property is located at 201 W Central Ave La Follette, TN.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 7,200‑square‑foot commercial building; Beauty salon‑spa tenant occupies a portion of the main level; Owner offices are located on the main level
