Hardin Valley Office/Warehouse
For Sale
$4,750,000
2010 Castaic Lane, Knoxville, TN 37932
28,678 SF office building with warehouse in West Knoxville.
Property Size28,678 SF
Price / SF$165.63
Days on Market283
Property Features for 2010 Castaic Lane
General Information
Standard status
Active
Size
28,678 SF
Class
A
Property subtype
Office
Building Details
Building Size
28,678 SF
Year Built
2002
Listing Agency:
SVN Wood Properties
(423) 440-9450
Listed By:
Taylor Thompson · License #369177
(423) 440-9450
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 17
Last Checked: Aug 30 at 3:17PM
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 Wood Properties
Investment Insights
Based on property information with market context.
This commercial office building, totaling 28,678 square feet, presents an opportunity for owner occupancy or investment. Constructed in 2002 and renovated in 2007, the property is designed for office use. It is zoned PC/TO, offering flexible usage options for various business needs. The building includes multiple offices, conference rooms, open workspaces, and a kitchen. Additionally, it features a 1,986 square foot warehouse with a 17-foot ceiling, an overhead door, and two loading docks. The property is situated on a 4.28-acre lot, suitable for growing businesses. Located in Hardin Valley, one of Knoxville's fastest-growing areas, the property provides access to Pellissippi Parkway and I-40, facilitating commuting and business travel. It is also located near Oak Ridge and Maryville. The location offers proximity to restaurants, shops, and schools.
Key Highlights
- Large 28,678 SF commercial office building suitable for owner occupancy or investment.
- Prime location in the heart of Hardin Valley, a fast‑growing area of West Knoxville, with easy access to major highways.
- Includes a 1,986 SF warehouse with a 17‑foot ceiling, overhead door, and two loading docks.
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
$379,410
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
7.99%
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%
$7,588,200
$7.6M
Cap Rate 7%
$5,420,143
$5.4M
Cap Rate 9%
$4,215,667
$4.2M
Market Conditions
NOI Build-Up for 28,678 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
$602.2K $21.00/SF
− Vacancy
−$96.4K −$3.36/SF
EGI
$505.9K $17.64/SF
− OpEx
−$126.5K −$4.41/SF
NOI
$379.4K $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%
$7,588,200
Cap Rate 7%
$5,420,143
Cap Rate 9%
$4,215,667
Alternative Uses
Best Use
Office B
$5.42M
$4.74M – $6.32M
NOI $379,410 @ 7.0% cap · market cap 7.99%
Second Best
Warehouse
$3.55M
$3.11M – $4.15M
NOI $248,785 @ 7.0% cap · market cap 5.24%
Theoretical Best
Office A
$7.10M
$6.22M – $8.29M
NOI $497,208 @ 7.0% cap · market cap 10.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
314
Businesses Nearby
Explore this area
Business Placement
Demographics for 37932, TN
21,726
Population
9,141
Households
2.4
Avg Household Size
38
Median Age
55%
College-Educated
94%
High-School Grad
29.0 sq mi
ZIP Area
749
Density / Sq Mi
$109,900
Median Household Income
$61,936
Median Earnings
$1,516
Median Rent
$431,200
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?
Office building - 28,678 SF office building with warehouse in West Knoxville.
Where is this office building located?
The property is located at 2010 Castaic Lane Knoxville, TN.
What is the asking price?
The asking price for this property is $4,750,000.
What are key features of this property?
This property features: Large 28,678 SF commercial office building suitable for owner occupancy or investment.; Prime location in the heart of Hardin Valley, a fast‑growing area of West Knoxville, with easy access to major highways.; Includes a 1,986 SF warehouse with a 17‑foot ceiling, overhead door, and two loading docks.
