Versatile Commercial Building for
For Sale
$400,000
2616 Foster Ave, Nashville, TN 37210
Commercial building suitable for office or childcare use.
Property Size1,050 SF
Price / SF$380.95
Days on Market146
Property Features for 2616 Foster Ave
General Information
Standard status
Active
Size
1,050 SF
Property subtype
Commercial
Amenities
Shingle Roof
Wood Roof
Listing Agency:
JONES DESIGN REALTY, LLC
(615) 685-2332
Listed By:
BRITTNEY N. USSERY
Source:
Corcoran
Added: Mar 19
Changed: Aug 11
Last Checked: Aug 10 at 4:40AM
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 JONES DESIGN REALTY, LLC
Investment Insights
Based on property information with market context.
This property, offered in AS-IS condition, presents an investment opportunity. The 1,050 square-foot building is suitable for use as an office space, featuring three separate rooms and an open area, along with a full kitchen and two bathrooms. The layout also lends itself to potential use as a childcare center, with the three rooms serving as classrooms and the fenced backyard providing space for outdoor activities.
Key Highlights
- Investment opportunity with potential for increased value.
- Versatile building suitable for office space or childcare.
- Includes a full kitchen.
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
$13,147
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
3.29%
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%
$262,940
$262.9K
Cap Rate 7%
$187,814
$187.8K
Cap Rate 9%
$146,078
$146.1K
Market Conditions
NOI Build-Up for 1,050 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
$22.1K $21.00/SF
− Vacancy
−$4.5K −$4.31/SF
EGI
$17.5K $16.70/SF
− OpEx
−$4.4K −$4.17/SF
NOI
$13.1K $12.52/SF
Area
Nashville, TN
Vacancy
20.50%
Lease Rate
$21.00 /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%
$262,940
Cap Rate 7%
$187,814
Cap Rate 9%
$146,078
Alternative Uses
Best Use
Office B
$187.8K
$164.3K – $219.1K
NOI $13,147 @ 7.0% cap · market cap 3.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$267.3K
$233.9K – $311.9K
NOI $18,711 @ 7.0% cap · market cap 4.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,046
Businesses Nearby
Explore this area
Business Placement
Demographics for 37210, TN
17,134
Population
9,201
Households
1.9
Avg Household Size
32
Median Age
32%
College-Educated
85%
High-School Grad
9.3 sq mi
ZIP Area
1,842
Density / Sq Mi
$43,343
Median Household Income
$36,815
Median Earnings
$1,250
Median Rent
$334,800
Median Home Value
Market
Vacancy Rate% for Office in Nashville, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Commercial building suitable for office or childcare use.
Where is this office units located?
The property is located at 2616 Foster Ave Nashville, TN.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Investment opportunity with potential for increased value.; Versatile building suitable for office space or childcare.; Includes a full kitchen.
