Industrial Warehouse and Office
For Sale
$2,790,000
2640 W Stone West Drive, Kingsport, TN 37660
New construction steel-frame warehouse with a two-level office and fully fenced, well-lit exterior on direct entry from W. Stone Drive.
Property Size13,295 SF
Lot Size10.00 Acres
Price / SF$209.85
Days on Market222
Property Features for 2640 W Stone West Drive
General Information
Standard status
Active
Size
13,295 SF
Lot size
10.00 Acres
Property subtype
General Commercial
Zoning
B3
Site & Location
Traffic Count
30,168 vehicles/day
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Utilities to Site
Yes
Warehouse & Industrial
Drive-In Doors
5
Heavy Power
Yes
Additional Details
Office Units
8
Amenities
reception area with dedicated lobby/vestibule
four restrooms with shower facilities
washer & dryer hookup
large kitchen/break area
handicap-accessible personnel doors and restrooms
interior security system
separate interior stair access plus dedicated steel stairway
well-lit exterior
underground utilities
Central Air
3
Metal
IRR
Building Details
Year Built
2025
Construction
steel-frame
Listing Agency:
TCI Group - Jerry Petzoldt Agency, LLC
(423) 230-0255
Listed By:
Ed Mahaffey · License #355986
Source:
Xome
Added: Jan 13
Changed: Aug 23
Last Checked: Jul 26 at 12:03PM
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 TCI Group - Jerry Petzoldt Agency, LLC
Investment Insights
Based on property information with market context.
New construction industrial warehouse and office facility featuring a steel-frame structure with standing seam metal roof and siding. The building includes a two-level office totaling 4,498 SF, alongside an 8,797 SF warehouse/shop level. The exterior is fully fenced and well-lit, and the site provides easy tractor-trailer access with direct entry approved from W. Stone Drive if needed.
The warehouse is built for heavy-duty use with 6-inch reinforced concrete floors, 28' center height and 20' eave height, and five (5) 14' x 14' drive-through roll-up doors. Three-phase power is included. The office layout provides eight (8) large private offices, a reception area with dedicated lobby/vestibule, four (4) restrooms with shower facilities, washer and dryer hookup, and a large kitchen/break area, along with handicap-accessible personnel doors and restrooms. The upper level includes separate interior stair access plus a dedicated steel stairway from the warehouse.
The property is offered with 10 acres, zoned B3 - Highway Business District. The seller indicates additional land is available up to 68 acres and will assist with rezoning if needed.
The warehouse is built for heavy-duty use with 6-inch reinforced concrete floors, 28' center height and 20' eave height, and five (5) 14' x 14' drive-through roll-up doors. Three-phase power is included. The office layout provides eight (8) large private offices, a reception area with dedicated lobby/vestibule, four (4) restrooms with shower facilities, washer and dryer hookup, and a large kitchen/break area, along with handicap-accessible personnel doors and restrooms. The upper level includes separate interior stair access plus a dedicated steel stairway from the warehouse.
The property is offered with 10 acres, zoned B3 - Highway Business District. The seller indicates additional land is available up to 68 acres and will assist with rezoning if needed.
Key Highlights
- New construction steel‑frame industrial warehouse/office on West Stone Drive in Kingsport, adjacent to Walmart and Tractor Supply
- Total building size 13,295 SF: 4,498 SF two‑level office and 8,797 SF warehouse/shop
- Warehouse built for heavy‑duty use with 6" reinforced concrete floors, 28' center height / 20' eave height, and 3‑phase power
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
$194,128
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
6.96%
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%
$3,882,560
$3.9M
Cap Rate 7%
$2,773,257
$2.8M
Cap Rate 9%
$2,156,978
$2.2M
Market Conditions
NOI Build-Up for 13,295 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
$331.8K $24.96/SF
− Vacancy
−$73.0K −$5.49/SF
EGI
$258.8K $19.47/SF
− OpEx
−$64.7K −$4.87/SF
NOI
$194.1K $14.60/SF
Area
Sullivan County, TN
Vacancy
22.00%
Lease Rate
$24.96 /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%
$3,882,560
Cap Rate 7%
$2,773,257
Cap Rate 9%
$2,156,978
Alternative Uses
Best Use
Office B
$2.77M
$2.43M – $3.24M
NOI $194,128 @ 7.0% cap · market cap 6.96%
Second Best
Warehouse
$1.53M
$1.34M – $1.78M
NOI $106,928 @ 7.0% cap · market cap 3.83%
Theoretical Best
Office A
$4.98M
$4.36M – $5.81M
NOI $348,512 @ 7.0% cap · market cap 12.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Drive-in doors
8
Office units
30,168 VPD
Traffic count
Yes
Heavy power
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
181
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37660, TN
39,479
Population
20,405
Households
1.9
Avg Household Size
45
Median Age
24%
College-Educated
88%
High-School Grad
65.7 sq mi
ZIP Area
601
Density / Sq Mi
$46,913
Median Household Income
$34,164
Median Earnings
$833
Median Rent
$177,800
Median Home Value
Market
Vacancy Rate% for Office in South region
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Similar Off Market Nearby
- Giuseppe's — 2539 E Stone Dr, Kingsport, TN 37660
Frequently Asked Questions
What type of property is this?
Flex space - New construction steel-frame warehouse with a two-level office and fully fenced, well-lit exterior on direct entry from W. Stone Drive.
Where is this flex space located?
The property is located at 2640 W Stone West Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $2,790,000.
What are key features of this property?
This property features: New construction steel‑frame industrial warehouse/office on West Stone Drive in Kingsport, adjacent to Walmart and Tractor Supply; Total building size 13,295 SF: 4,498 SF two‑level office and 8,797 SF warehouse/shop; Warehouse built for heavy‑duty use with 6" reinforced concrete floors, 28' center height / 20' eave height, and 3‑phase power
