Prime Commercial Building in
For Sale
Contact for pricing
Pending
300 Forest Avenue, Chattanooga, TN 37405
All-brick, two-level commercial building in the heart of North Shore.
Property Size4,000 SF
Lot Size0.50 Acres
Days on Market103
Property Features for 300 Forest Avenue
General Information
Standard status
Pending
Size
4,000 SF
Total Parking Spaces
14
Lot size
0.50 Acres
Property subtype
Retail, Office, Mixed Use
Investment Type
Owner/User
Building Details
Year Built
1982
Year Renovated
2015
Buildings
1
Units
14
Tenancy
Single
Listing Agency:
Crye-Leike, REALTORS
(706) 537-1300
Listed By:
Shirley Moore · License #TN 281776
Source:
Crexi
Added: May 1
Changed: Aug 8
Last Checked: Jul 25 at 9:33AM
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 Crye-Leike, REALTORS
Investment Insights
Based on property information with market context.
Located in the heart of North Shore Chattanooga, this all-brick commercial building offers a prime opportunity. Situated on a corner lot, the property is near the Walnut Street Bridge and Coolidge Park, providing visibility, accessibility, and walkability within a desirable business district. The two-level office building has 4,000 square feet of space and has been home to a law practice for over 20 years. The building is designed for flexibility, featuring two separate 2,000-square-foot spaces, each with a private entrance, and interior access connecting both levels. Inside, there are multiple private offices, conference rooms, storage areas, and a kitchenette, with restrooms on both floors. The layout supports various professional uses and can be configured for single or multi-tenant occupancy. The property includes a rear parking lot with approximately 14 to 16 dedicated spaces. The current owner-occupant will vacate prior to closing, allowing for immediate occupancy or repositioning. This property is suitable for an owner-occupant seeking a flagship location or an investor looking for a high-demand asset in a thriving downtown corridor.
Key Highlights
- Prime location in the heart of North Shore Chattanooga, steps from Walnut Street Bridge and Coolidge Park, offering unmatched visibility and walkability.
- Spacious rear parking lot with approximately 14–16 dedicated spaces, a rare amenity in this area.
- 4,000± SF two‑level all‑brick commercial building on nearly half an acre.
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
$45,900
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
3.67%
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%
$918,000
$918.0K
Cap Rate 7%
$655,714
$655.7K
Cap Rate 9%
$510,000
$510.0K
Market Conditions
NOI Build-Up for 4,000 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
$72.0K $18.00/SF
− Vacancy
−$10.8K −$2.70/SF
EGI
$61.2K $15.30/SF
− OpEx
−$15.3K −$3.82/SF
NOI
$45.9K $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%
$918,000
Cap Rate 7%
$655,714
Cap Rate 9%
$510,000
Alternative Uses
Best Use
Office B
$655.7K
$573.8K – $765.0K
NOI $45,900 @ 7.0% cap · market cap 3.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$883.4K
$773.0K – $1.03M
NOI $61,839 @ 7.0% cap · market cap 4.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,290
Businesses Nearby
Explore this area
Business Placement
Demographics for 37405, TN
18,231
Population
9,959
Households
1.8
Avg Household Size
36
Median Age
53%
College-Educated
92%
High-School Grad
54.3 sq mi
ZIP Area
336
Density / Sq Mi
$77,850
Median Household Income
$51,748
Median Earnings
$1,276
Median Rent
$416,900
Median Home Value
Market
Vacancy Rate% for Office 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?
Office building - All-brick, two-level commercial building in the heart of North Shore.
Where is this office building located?
The property is located at 300 Forest Avenue Chattanooga, TN.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Prime location in the heart of North Shore Chattanooga, steps from Walnut Street Bridge and Coolidge Park, offering unmatched visibility and walkability.; Spacious rear parking lot with approximately 14–16 dedicated spaces, a rare amenity in this area.; 4,000± SF two‑level all‑brick commercial building on nearly half an acre.
