Renovated Historic Mixed-Use
For Sale
Contact for pricing
2602 E MAIN ST, Chattanooga, TN 37404
Fully renovated historic mixed-use building offering modern amenities and strong visibility on East Main Street.
Property Size13,500 SF
Price / SF$162.96
Days on Market76
Property Features for 2602 E MAIN ST
General Information
Standard status
Active
Size
13,500 SF
Property subtype
Retail, Office, Mixed Use
Zoning
C-C
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Building Details
Year Built
1935
Year Renovated
2022
Stories
3
Units
4
Tenancy
Multi
Listing Agency:
NAI Charter Real Estate
Listed By:
Jeff Howell · License #TN 359574
(423) 266-1432
Source:
Crexi
Added: Jun 22
Changed: Aug 16
Last Checked: Sep 1 at 11:27AM
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 NAI Charter Real Estate
Investment Insights
Based on property information with market context.
This historically styled mixed-use building has been fully renovated to preserve its character while adding modern amenities. The result is a ready-to-occupy option for businesses seeking a maintained, character-forward property with contemporary functionality.
The building is strategically positioned on East Main Street, benefiting from strong visibility and convenient access to surrounding neighborhoods and downtown. It is also close to Mill Town Redevelopment and the McCallie Campus, supporting foot-traffic potential from nearby activity.
With its central East Main Street address and newly refreshed interior, the property is well suited for a variety of commercial uses within a renovated, historic framework.
The building is strategically positioned on East Main Street, benefiting from strong visibility and convenient access to surrounding neighborhoods and downtown. It is also close to Mill Town Redevelopment and the McCallie Campus, supporting foot-traffic potential from nearby activity.
With its central East Main Street address and newly refreshed interior, the property is well suited for a variety of commercial uses within a renovated, historic framework.
Key Highlights
- Historic mixed‑use building built in 1935
- Fully renovated to maintain its character while adding modern amenities
- Located on East Main Street with strong visibility and convenient access to surrounding neighborhoods and downtown
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
$154,913
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
7.04%
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%
$3,098,260
$3.1M
Cap Rate 7%
$2,213,043
$2.2M
Cap Rate 9%
$1,721,256
$1.7M
Market Conditions
NOI Build-Up for 13,500 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
$243.0K $18.00/SF
− Vacancy
−$36.5K −$2.70/SF
EGI
$206.6K $15.30/SF
− OpEx
−$51.6K −$3.82/SF
NOI
$154.9K $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%
$3,098,260
Cap Rate 7%
$2,213,043
Cap Rate 9%
$1,721,256
Alternative Uses
Best Use
Office B
$2.21M
$1.94M – $2.58M
NOI $154,913 @ 7.0% cap · market cap 7.04%
Second Best
Retail
$1.49M
$1.30M – $1.74M
NOI $104,328 @ 7.0% cap · market cap 4.74%
Theoretical Best
Office A
$2.98M
$2.61M – $3.48M
NOI $208,708 @ 7.0% cap · market cap 9.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
506
Businesses Nearby
Explore this area
Business Placement
Demographics for 37404, TN
13,106
Population
5,887
Households
2.2
Avg Household Size
34
Median Age
32%
College-Educated
86%
High-School Grad
5.2 sq mi
ZIP Area
2,520
Density / Sq Mi
$53,585
Median Household Income
$35,983
Median Earnings
$999
Median Rent
$235,300
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 - Fully renovated historic mixed-use building offering modern amenities and strong visibility on East Main Street.
Where is this retail space located?
The property is located at 2602 E MAIN ST Chattanooga, TN.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Historic mixed‑use building built in 1935; Fully renovated to maintain its character while adding modern amenities; Located on East Main Street with strong visibility and convenient access to surrounding neighborhoods and downtown
