Prime Land with I-40
For Sale
$580,000
2025 N Salem Rd, Cookeville, TN 38506
Four acres ideal for retail or office development in Cookeville.
Property Size2,200 SF
Lot Size4.00 Acres
Price / SF$263.64
Days on Market587
Property Features for 2025 N Salem Rd
General Information
Standard status
Active
Size
2,200 SF
Lot size
4.00 Acres
Listing Agency:
Exit Real Estate Solutions
(615) 417-5593
Listed By:
Jodie Thornton · License #249095
(615) 417-5593
Source:
Exprealty
Added: Jan 6, 2025
Changed: Aug 8
Last Checked: Aug 8 at 2:23PM
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 Exit Real Estate Solutions
Investment Insights
Based on property information with market context.
This property features four acres with 1055 square feet of frontage on Interstate 40, accessible from Highway 111 in Cookeville, Tennessee. It includes a 2200-square-foot home in excellent condition with a full walk-out basement that is not included in the square footage. The location is suitable for retail or office use, offering potential for growth and future expansion or parking. The property is positioned for development, appealing to investors and developers looking to capitalize on the growth in Cookeville. Existing utilities include electric, city water, city sewer, gas, cable, and Wi-Fi services.
Key Highlights
- Prime 4‑acre location with 1055 sq ft of I‑40 frontage at Hwy 111 exit.
- Ideal for retail or office development with potential for swift growth.
- Excellent condition 2200 sq ft home included.
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
$34,417
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
5.93%
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%
$688,340
$688.3K
Cap Rate 7%
$491,671
$491.7K
Cap Rate 9%
$382,411
$382.4K
Market Conditions
NOI Build-Up for 2,200 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
$50.7K $23.04/SF
− Vacancy
−$1.5K −$0.69/SF
EGI
$49.2K $22.35/SF
− OpEx
−$14.8K −$6.70/SF
NOI
$34.4K $15.64/SF
Area
Putnam 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%
$688,340
Cap Rate 7%
$491,671
Cap Rate 9%
$382,411
Alternative Uses
Best Use
Retail
$491.7K
$430.2K – $573.6K
NOI $34,417 @ 7.0% cap · market cap 5.93%
Second Best
Office B
$434.5K
$380.2K – $506.9K
NOI $30,413 @ 7.0% cap · market cap 5.24%
Theoretical Best
Office A
$908.0K
$794.5K – $1.06M
NOI $63,559 @ 7.0% cap · market cap 10.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
21
Businesses Nearby
Explore this area
Business Placement
Demographics for 38506, TN
29,976
Population
13,018
Households
2.3
Avg Household Size
42
Median Age
31%
College-Educated
90%
High-School Grad
164.3 sq mi
ZIP Area
182
Density / Sq Mi
$63,051
Median Household Income
$37,589
Median Earnings
$1,032
Median Rent
$256,100
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?
Commercial land - Four acres ideal for retail or office development in Cookeville.
Where is this commercial land located?
The property is located at 2025 N Salem Rd Cookeville, TN.
What is the asking price?
The asking price for this property is $580,000.
What are key features of this property?
This property features: Prime 4‑acre location with **1055 sq ft of I‑40 frontage** at Hwy 111 exit.; Ideal for retail or office development with potential for swift growth.; Excellent condition 2200 sq ft home included.
