Fully Leased Knoxville Industrial
For Sale
Contact for pricing
2425 Burnside St, Knoxville, TN 37921
Industrial investment opportunity in established Knoxville corridor, near I-40.
Property Size23,847 SF
Lot Size1.70 Acres
Price / SF$106.93
Days on Market189
Property Features for 2425 Burnside St
General Information
Standard status
Active
Size
23,847 SF
Lot size
1.70 Acres
Property subtype
Industrial
Zoning
I-H
Occupancy
100%
Investment Type
Institutional
Building Details
Year Built
1967
Listing Agency:
IronHorn Enterprises
Listed By:
Ryan Jenkins · License #0225268974
Source:
Crexi
Added: Feb 16
Changed: Aug 24
Last Checked: Aug 23 at 6:39PM
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 IronHorn Enterprises
Investment Insights
Based on property information with market context.
The property at 2425 Burnside Street is a fully leased industrial property located in an established industrial area of Knoxville. The building has approximately 23,847 square feet of space on a 1.7-acre lot. The property is a mix of warehouse and office space, with about 20% of the space built out as office area. The warehouse area features 17- to 19-foot clear heights, four dock-high doors, and one drive-in door, which allows for efficient loading. The property is located minutes from I-40 and I-275, providing access to Knoxville’s primary transportation routes and connectivity to East Tennessee and markets such as Nashville, Atlanta, and Charlotte. The property's location within the Knoxville industrial submarket may enhance long-term tenant demand.
Key Highlights
- Fully leased industrial investment property providing reliable in‑place cash flow.
- Strategic location with immediate access to I‑40 and I‑275, providing seamless connectivity to key Southeast markets.
- Well‑balanced mix of warehouse and office space (approximately 20% office buildout).
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
$206,875
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
8.11%
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%
$4,137,500
$4.1M
Cap Rate 7%
$2,955,357
$3.0M
Cap Rate 9%
$2,298,611
$2.3M
Market Conditions
NOI Build-Up for 23,847 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
$257.5K $10.80/SF
− Vacancy
−$14.2K −$0.59/SF
EGI
$243.4K $10.21/SF
− OpEx
−$36.5K −$1.53/SF
NOI
$206.9K $8.68/SF
Area
Knoxville, TN
Vacancy
5.50%
Lease Rate
$10.80 /SF/Yr
Expense Ratio
15.00%
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%
$4,137,500
Cap Rate 7%
$2,955,357
Cap Rate 9%
$2,298,611
Alternative Uses
Best Use
Warehouse
$2.96M
$2.59M – $3.45M
NOI $206,875 @ 7.0% cap · market cap 8.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.91M
$5.17M – $6.89M
NOI $413,450 @ 7.0% cap · market cap 16.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
255
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37921, TN
28,903
Population
12,969
Households
2.2
Avg Household Size
35
Median Age
27%
College-Educated
87%
High-School Grad
15.9 sq mi
ZIP Area
1,818
Density / Sq Mi
$57,813
Median Household Income
$37,518
Median Earnings
$1,147
Median Rent
$204,300
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Warehouse - Industrial investment opportunity in established Knoxville corridor, near I-40.
Where is this warehouse located?
The property is located at 2425 Burnside St Knoxville, TN.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: Fully leased industrial investment property providing reliable in‑place cash flow.; Strategic location with immediate access to I‑40 and I‑275, providing seamless connectivity to key Southeast markets.; Well‑balanced mix of warehouse and office space (approximately 20% office buildout).
