Building Details

Year Built 1950

Stories 1

Units 1

Listing Agency: Exit Realty

Listed By: Nate Card · License #323726 Show Phone

Source: Crexi

Added: May 13 Changed: Aug 23 Last Checked: Sep 1 at 8:32AM

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Investment Insights

Based on property information with market context.

This freestanding, versatile commercial building offers two distinct levels for mixed-use flexibility. The upper level totals 7,395 SF and is set up for retail, showroom, or storefront use. The lower level also totals 7,395 SF and is designed for storage, warehouse, or garage uses, with roll-up doors providing practical loading and access.

The property is located along the high-traffic corridor of Dayton Blvd in Red Bank, TN, approximately 2 miles from Downtown Chattanooga and near Highway 27, supporting convenient regional access.

With a split configuration and multiple potential uses tied to each level, the building suits an owner-user looking to occupy part of the space while generating additional monthly income from other tenants.

Key Highlights

• Freestanding 14,790 SF mixed‑use building (built 1950) on the high‑traffic corridor of Dayton Blvd.
• Upper level features 7,395 SF suitable for retail, showroom, or storefront use.
• Lower level offers 7,395 SF for storage, warehouse, or garage use, with roll‑up doors for loading access.

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

$139,473

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

7.34%

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%

$2,789,460 $2.8M

Cap Rate 7%

$1,992,471 $2.0M

Cap Rate 9%

$1,549,700 $1.5M

Market Conditions

NOI Build-Up for 14,790 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

$230.7K $15.60/SF

− Vacancy

−$16.2K −$1.09/SF

EGI

$214.6K $14.51/SF

− OpEx

−$75.1K −$5.08/SF

NOI

$139.5K $9.43/SF

Area

Chattanooga, TN

Vacancy

7.00%

Lease Rate

$15.60 /SF/Yr

Expense Ratio

35.00%

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%

$2,789,460

Cap Rate 7%

$1,992,471

Cap Rate 9%

$1,549,700

Alternative Uses

Best Use

Flex RnD

$1.99M

$1.74M – $2.32M (±1% cap)

NOI $139,473 @ 7.0% cap · market cap 7.34%

Second Best

Retail

$1.63M

$1.43M – $1.90M (±1% cap)

NOI $114,297 @ 7.0% cap · market cap 6.02%

Theoretical Best

Office A

$3.27M

$2.86M – $3.81M (±1% cap)

NOI $228,651 @ 7.0% cap · market cap 12.03%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Mango's Décor & Co. Furniture & Home Goods

Suggested Use

Top Pick Law Firm Real Estate Agency Dental Office Hair Salon Spa & Massage Center Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

213

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 37415, TN

23,580

Population

11,970

Households

2

Avg Household Size

38

Median Age

45%

College-Educated

95%

High-School Grad

17.5 sq mi

ZIP Area

1,347

Density / Sq Mi

$67,027

Median Household Income

$42,933

Median Earnings

$1,240

Median Rent

$261,900

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Flex space - Freestanding versatile building with upper-level retail/showroom space and a lower level built for roll-up door loading.

Where is this flex space located?

The property is located at 2112 DAYTON BLVD Red Bank, TN.

What is the asking price?

The asking price for this property is $1,900,000.

What are key features of this property?

This property features: Freestanding 14,790 SF mixed‑use building (built 1950) on the high‑traffic corridor of Dayton Blvd.; Upper level features 7,395 SF suitable for retail, showroom, or storefront use.; Lower level offers 7,395 SF for storage, warehouse, or garage use, with roll‑up doors for loading access.