Flex Shop
For Sale
$349,900
241 1st Street SW, Cleveland, TN 37311
Existing shop equipment supports trade, light industrial, and service uses.
Property Size3,980 SF
Days on Market13
Property Features for 241 1st Street SW
General Information
Standard status
Active
Size
3,980 SF
Property subtype
Office
Building Details
Building Size
3,980 SF
Year Built
1972
Buildings
1
Listing Agency:
Exit Provision Realty
(423) 240-0231
Listed By:
Dennis Opp · License #320959
(423) 240-0231
Source:
Gracefrankgroup
Added: Jul 31
Changed: Aug 8
Last Checked: Aug 11 at 1:17PM
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 Provision Realty
Investment Insights
Based on property information with market context.
Built in 1972, this flex property is configured as a commercial shop building with adaptable space for trade, light industrial, contractor, and service operations. Select shop equipment and related assets remain with the property, adding functional resources for a range of business applications.
The building is positioned in downtown Cleveland within an established commercial corridor and offers access to major corridors. Its location and shop-oriented layout support businesses seeking a central operating base with flexible commercial functionality.
The building is positioned in downtown Cleveland within an established commercial corridor and offers access to major corridors. Its location and shop-oriented layout support businesses seeking a central operating base with flexible commercial functionality.
Key Highlights
- 1972‑built flex property in downtown Cleveland
- Shop building suited to trade, light industrial, contractor, and service operations
- Select shop equipment and related assets remain with the property
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
$21,036
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
6.01%
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%
$420,720
$420.7K
Cap Rate 7%
$300,514
$300.5K
Cap Rate 9%
$233,733
$233.7K
Market Conditions
NOI Build-Up for 3,980 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
$30.9K $7.76/SF
− Vacancy
−$834 −$0.21/SF
EGI
$30.1K $7.55/SF
− OpEx
−$9.0K −$2.27/SF
NOI
$21.0K $5.29/SF
Area
Bradley County, TN
Vacancy
2.70%
Lease Rate
$7.76 /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%
$420,720
Cap Rate 7%
$300,514
Cap Rate 9%
$233,733
Alternative Uses
Best Use
Industrial
$300.5K
$263.0K – $350.6K
NOI $21,036 @ 7.0% cap · market cap 6.01%
Second Best
Flex RnD
$268.1K
$234.6K – $312.8K
NOI $18,766 @ 7.0% cap · market cap 5.36%
Theoretical Best
Office A
$835.1K
$730.7K – $974.3K
NOI $58,458 @ 7.0% cap · market cap 16.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,174
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37311, TN
29,687
Population
12,942
Households
2.3
Avg Household Size
34
Median Age
18%
College-Educated
83%
High-School Grad
50.1 sq mi
ZIP Area
593
Density / Sq Mi
$46,827
Median Household Income
$28,839
Median Earnings
$890
Median Rent
$205,800
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 - Existing shop equipment supports trade, light industrial, and service uses.
Where is this flex space located?
The property is located at 241 1st Street SW Cleveland, TN.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: 1972‑built flex property in downtown Cleveland; Shop building suited to trade, light industrial, contractor, and service operations; Select shop equipment and related assets remain with the property
