Clear-Span Flex
For Sale
Contact for pricing
223 COMMERCE ST, Kingsport, TN 37660
Two separately entered areas combine finished showroom space with an industrial bay for flexible occupancy or leasing arrangements.
Property Size11,250 SF
Lot Size0.24 Acres
Price / SF$116.89
Days on Market12
Property Features for 223 COMMERCE ST
General Information
Standard status
Active
Size
11,250 SF
Class
B
Lot size
0.24 Acres
Property subtype
Retail, Industrial, Mixed Use
Zoning
B-2 Central Business District
Lease Type
NNN
Investment Type
Owner/User
Financials
Asking Price
$1,315,000
Opportunity Zone
Yes
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Clear Span
Yes
Office Build-Out
500 SF
Mezzanine
500 SF
Building Details
Year Built
1933
Buildings
1
Stories
1
Units
1
Building Size
11,250 SF
Listing Agency:
EXP Commercial
(214) 718-7079
Listed By:
Carson Jones · License #382989
Source:
Crexi
Added: Aug 10
Changed: Aug 18
Last Checked: Aug 19 at 3:52PM
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 EXP Commercial
Investment Insights
Based on property information with market context.
This 1933 commercial building provides approximately 11,250 square feet across two separately entered areas. The front portion includes roughly 4,250 square feet of finished showroom space, polished terrazzo flooring, decorative lighting, storefront glazing, and a 500-square-foot mezzanine office overlooking the rear bay. The back portion offers approximately 6,500 square feet of column-free flex space with exposed white steel bowstring trusses, a polished concrete slab, street-grade drive-in doors, steel-sash windows, gas unit heaters, and suspended air handling.
Located at 223 Commerce Street in Downtown Kingsport’s B-2 Central Business District, the property sits on approximately 0.24 acres within the historic downtown core. More than 1,800 free public parking spaces serve the district, including a 364-space structured garage roughly 250 yards away. The flex area provides pull-up access for deliveries and load-in. The layout supports separate occupancy of the showroom and industrial bay, or use of the full building under one transaction.
Located at 223 Commerce Street in Downtown Kingsport’s B-2 Central Business District, the property sits on approximately 0.24 acres within the historic downtown core. More than 1,800 free public parking spaces serve the district, including a 364-space structured garage roughly 250 yards away. The flex area provides pull-up access for deliveries and load-in. The layout supports separate occupancy of the showroom and industrial bay, or use of the full building under one transaction.
Key Highlights
- Approximately 11,250 SF building on ±0.24 acres
- Front area includes 4,250 SF of finished showroom space
- Rear area provides 6,500 SF of column‑free flex space
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
$98,719
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
7.51%
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%
$1,974,380
$2.0M
Cap Rate 7%
$1,410,271
$1.4M
Cap Rate 9%
$1,096,878
$1.1M
Market Conditions
NOI Build-Up for 11,250 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
$175.5K $15.60/SF
− Vacancy
−$17.6K −$1.56/SF
EGI
$158.0K $14.04/SF
− OpEx
−$59.2K −$5.27/SF
NOI
$98.7K $8.77/SF
Area
Sullivan County, TN
Vacancy
10.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,974,380
Cap Rate 7%
$1,410,271
Cap Rate 9%
$1,096,878
Alternative Uses
Best Use
Retail
$2.48M
$2.17M – $2.90M
NOI $173,820 @ 7.0% cap · market cap 13.22%
Second Best
Mixed Use
$1.41M
$1.23M – $1.65M
NOI $98,719 @ 7.0% cap · market cap 7.51%
Theoretical Best
Office A
$4.21M
$3.69M – $4.92M
NOI $294,905 @ 7.0% cap · market cap 22.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,718
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37660, TN
39,479
Population
20,405
Households
1.9
Avg Household Size
45
Median Age
24%
College-Educated
88%
High-School Grad
65.7 sq mi
ZIP Area
601
Density / Sq Mi
$46,913
Median Household Income
$34,164
Median Earnings
$833
Median Rent
$177,800
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two separately entered areas combine finished showroom space with an industrial bay for flexible occupancy or leasing arrangements.
Where is this flex space located?
The property is located at 223 COMMERCE ST Kingsport, TN.
What is the asking price?
The asking price for this property is $1,315,000.
What are key features of this property?
This property features: Approximately 11,250 SF building on ±0.24 acres; Front area includes 4,250 SF of finished showroom space; Rear area provides 6,500 SF of column‑free flex space
