Restaurant Property Near
For Sale
$350,000
203 Commerce St, Tupelo, MS 38804
Commercial Sale, Tupelo, MS
Property Size2,022 SF
Lot Size0.23 Acres
Price / SF$173.10
Days on Market139
Property Features for 203 Commerce St
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Main St to Fairpark, N on Commerce St.
Subdivision
Northeast Tupelo
Standard status
Active
Size
2,022 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Description
Book 1481 Page 069
Tax Annual Amount
2817
Legal Description
Book 1481 Page 069
Building Details
Floors in Building
1
Listing Agency:
TM REALTORS
(662) 842-3844
Listed By:
Kevin Knight · License #S48856
(662) 842-3844
Added: Apr 9
Changed: Aug 19
Last Checked: Aug 25 at 3:06AM
MLS# 26-1227
Copyright © 2026 Northeast Mississippi Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,022-square-foot commercial property in Tupelo was previously operated as a restaurant and offers a dedicated setting for continued food-service use. The site may also accommodate salon, café, office, or retail operations, as identified in the property information.
The 0.2312-acre parcel is positioned next to Cadence Arena and one block from Main Street at Fairpark. Its location places the property within the Fairpark area and near downtown Tupelo. The combination of an established commercial building, former restaurant use, and multiple stated business-use possibilities provides a practical base for an operator evaluating the property.
The 0.2312-acre parcel is positioned next to Cadence Arena and one block from Main Street at Fairpark. Its location places the property within the Fairpark area and near downtown Tupelo. The combination of an established commercial building, former restaurant use, and multiple stated business-use possibilities provides a practical base for an operator evaluating the property.
Key Highlights
- 2,022‑square‑foot commercial property
- 0.2312‑acre parcel in Tupelo
- Former restaurant use
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
$20,973
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
5.99%
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%
$419,460
$419.5K
Cap Rate 7%
$299,614
$299.6K
Cap Rate 9%
$233,033
$233.0K
Market Conditions
NOI Build-Up for 2,022 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
$30.3K $15.00/SF
− Vacancy
−$2.4K −$1.17/SF
EGI
$28.0K $13.83/SF
− OpEx
−$7.0K −$3.46/SF
NOI
$21.0K $10.37/SF
Area
Lee County, MS
Vacancy
7.80%
Lease Rate
$15.00 /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%
$419,460
Cap Rate 7%
$299,614
Cap Rate 9%
$233,033
Alternative Uses
Best Use
Specialty Retail
$299.6K
$262.2K – $349.6K
NOI $20,973 @ 7.0% cap · market cap 5.99%
Second Best
Retail
$239.8K
$209.8K – $279.7K
NOI $16,784 @ 7.0% cap · market cap 4.80%
Theoretical Best
Office A
$379.7K
$332.3K – $443.0K
NOI $26,582 @ 7.0% cap · market cap 7.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,055
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 38804, MS
17,314
Population
7,978
Households
2.2
Avg Household Size
40
Median Age
30%
College-Educated
87%
High-School Grad
78.5 sq mi
ZIP Area
221
Density / Sq Mi
$63,837
Median Household Income
$37,416
Median Earnings
$858
Median Rent
$201,600
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Former restaurant space near Fairpark with flexibility for café, salon, office, or retail use.
Where is this conventional restaurant located?
The property is located at 203 Commerce St Tupelo, MS.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,022‑square‑foot commercial property; 0.2312‑acre parcel in Tupelo; Former restaurant use
