Retail Space with
For Sale
$335,000
220 W 3rd Street, Cookeville, TN 38501
Open retail area includes a separate office, kitchen, storage room, and full restroom with shower.
Property Size700 SF
Price / SF$478.57
Days on Market43
Property Features for 220 W 3rd Street
General Information
Standard status
Active
Size
700 SF
Property subtype
Commercial
Zoning
MS
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$1,612
Amenities
open retail space
separate office
kitchen
full restroom with shower
storage room
newer HVAC (2021)
new water heater
Building Details
Building Size
700 SF
Year Built
1937
Buildings
1
Stories
1
Units
1
Listing Agency:
Highlands Elite Real Estate LLC
(931) 260-3743
Listed By:
Wayne Russell · License #333678
(931) 260-3743
Source:
Firstrealty
Added: Jul 20
Changed: Aug 30
Last Checked: Aug 30 at 1:20PM
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 Highlands Elite Real Estate LLC
Investment Insights
Based on property information with market context.
This retail property provides 700+/- SF of improved space arranged for multiple commercial functions. The interior includes an open retail area, a separate office, kitchen, storage room, and full restroom with shower. HVAC was replaced in 2021, and the water heater is new.
Built in 1937, the building fronts W 3rd Street with 50' of frontage and carries an MS zoning designation. The property is located at 220 W 3rd Street in Cookeville, Tennessee, within walking distance to CRMC.
Built in 1937, the building fronts W 3rd Street with 50' of frontage and carries an MS zoning designation. The property is located at 220 W 3rd Street in Cookeville, Tennessee, within walking distance to CRMC.
Key Highlights
- 700+/- SF of improved retail space
- 50' of frontage along W 3rd
- MS Zoning Designation
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
$10,951
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
3.27%
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%
$219,020
$219.0K
Cap Rate 7%
$156,443
$156.4K
Cap Rate 9%
$121,678
$121.7K
Market Conditions
NOI Build-Up for 700 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
$16.1K $23.04/SF
− Vacancy
−$484 −$0.69/SF
EGI
$15.6K $22.35/SF
− OpEx
−$4.7K −$6.70/SF
NOI
$11.0K $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%
$219,020
Cap Rate 7%
$156,443
Cap Rate 9%
$121,678
Alternative Uses
Best Use
Retail
$156.4K
$136.9K – $182.5K
NOI $10,951 @ 7.0% cap · market cap 3.27%
Second Best
Office B
$138.2K
$121.0K – $161.3K
NOI $9,677 @ 7.0% cap · market cap 2.89%
Theoretical Best
Office A
$288.9K
$252.8K – $337.1K
NOI $20,223 @ 7.0% cap · market cap 6.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,984
Businesses Nearby
Explore this area
Business Placement
Demographics for 38501, TN
41,141
Population
19,158
Households
2.1
Avg Household Size
33
Median Age
31%
College-Educated
88%
High-School Grad
87.1 sq mi
ZIP Area
472
Density / Sq Mi
$50,923
Median Household Income
$30,191
Median Earnings
$856
Median Rent
$245,100
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?
Retail space - Open retail area includes a separate office, kitchen, storage room, and full restroom with shower.
Where is this retail space located?
The property is located at 220 W 3rd Street Cookeville, TN.
What is the asking price?
The asking price for this property is $335,000.
What are key features of this property?
This property features: 700+/- SF of improved retail space; 50' of frontage along W 3rd; MS Zoning Designation
