Freestanding Brick Office
For Sale
Contact for pricing
2502 Cummings Hwy, Chattanooga, TN 37419
Free-standing brick office building on Cummings Hwy with strong visibility in the Lookout Valley retail corridor.
Property Size2,669 SF
Price / SF$335.33
Days on Market89
Property Features for 2502 Cummings Hwy
General Information
Standard status
Active
Size
2,669 SF
Property subtype
OFFICE
Building Details
Construction
brick
Listing Agency:
SVN | Second Story RE Management
(205) 527-3500
Listed By:
Nick Petras · License ##434029
(205) 527-3500
Source:
Moodyscre
Added: May 20
Changed: Jul 26
Last Checked: Jul 26 at 1:57AM
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 SVN | Second Story RE Management
Investment Insights
Based on property information with market context.
This free-standing brick office building is positioned in the heart of the Lookout Valley retail corridor, offering visibility along Cummings Hwy. The property is suited for an owner-operator seeking a dedicated footprint or an investor looking to acquire a commercial asset in an active retail setting.
The building’s frontage on Cummings Hwy places it in a high-traffic area, supporting ongoing business visibility and day-to-day accessibility.
As an office building configured for standalone operations, it provides a straightforward option for buyers evaluating a commercial property in Chattanooga.
The building’s frontage on Cummings Hwy places it in a high-traffic area, supporting ongoing business visibility and day-to-day accessibility.
As an office building configured for standalone operations, it provides a straightforward option for buyers evaluating a commercial property in Chattanooga.
Key Highlights
- Free‑standing brick office building on Cummings Hwy
- Located in the Lookout Valley retail corridor
- Strong visibility and high‑traffic location
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
$30,627
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
3.42%
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%
$612,540
$612.5K
Cap Rate 7%
$437,529
$437.5K
Cap Rate 9%
$340,300
$340.3K
Market Conditions
NOI Build-Up for 2,669 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
$48.0K $18.00/SF
− Vacancy
−$7.2K −$2.70/SF
EGI
$40.8K $15.30/SF
− OpEx
−$10.2K −$3.82/SF
NOI
$30.6K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$612,540
Cap Rate 7%
$437,529
Cap Rate 9%
$340,300
Alternative Uses
Best Use
Office B
$437.5K
$382.8K – $510.5K
NOI $30,627 @ 7.0% cap · market cap 3.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$589.5K
$515.8K – $687.7K
NOI $41,262 @ 7.0% cap · market cap 4.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
115
Businesses Nearby
Explore this area
Business Placement
Demographics for 37419, TN
6,438
Population
2,952
Households
2.2
Avg Household Size
45
Median Age
48%
College-Educated
92%
High-School Grad
49.0 sq mi
ZIP Area
131
Density / Sq Mi
$86,029
Median Household Income
$51,528
Median Earnings
$979
Median Rent
$302,800
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?
Office building - Free-standing brick office building on Cummings Hwy with strong visibility in the Lookout Valley retail corridor.
Where is this office building located?
The property is located at 2502 Cummings Hwy Chattanooga, TN.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Free‑standing brick office building on Cummings Hwy; Located in the Lookout Valley retail corridor; Strong visibility and high‑traffic location
