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3045 Sutherland Ave, Knoxville, TN 37919
Two office structures provide multiple work areas, reception spaces, support rooms, and rear storage and garage functionality.
Property Size2,100 SF
Price / SF$261.90
Days on Market4
Property Features for 3045 Sutherland Ave
General Information
Standard status
Active
Size
2,100 SF
Property subtype
OFFICE
Site & Location
Highway Access
Yes
Road Access
Yes
Listing Agency:
Gables & Gates
(865) 406-2513
Listed By:
Kara Dunn
(865) 924-0954
Source:
Moodyscre
Added: Sep 16
Changed: Sep 18
Last Checked: Sep 18 at 3:06PM
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 Gables & Gates
Investment Insights
Based on property information with market context.
This office property includes two distinct commercial buildings with varied workspace configurations. The building at 3045 Sutherland Avenue contains 1,088 square feet and was adapted from residential use for offices, with a reception area, several offices, a breakroom or kitchenette, two restrooms, an unfinished basement, and a rear storage garage. The 3049 Sutherland Avenue building measures 2,100 square feet and includes a lobby, reception area, multiple offices, a conference room, restroom, and rear garage space with a loading door.
The property is located in Knoxville near Downtown Knoxville and the Bearden and Kingston Pike commercial area. Access is available to Interstate 40/75, Kingston Pike, Middlebrook Pike, and Northshore Drive, with connections to the University of Tennessee, Fort Sanders, UT Medical Center, and McGhee Tyson Airport. The property is leased through December 2026.
The property is located in Knoxville near Downtown Knoxville and the Bearden and Kingston Pike commercial area. Access is available to Interstate 40/75, Kingston Pike, Middlebrook Pike, and Northshore Drive, with connections to the University of Tennessee, Fort Sanders, UT Medical Center, and McGhee Tyson Airport. The property is leased through December 2026.
Key Highlights
- Two office buildings at 3045 and 3049 Sutherland Avenue
- 1,088‑square‑foot office building with 2 restrooms and unfinished basement
- 2,100‑square‑foot office building with conference room and rear garage
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
$27,783
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
5.05%
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%
$555,660
$555.7K
Cap Rate 7%
$396,900
$396.9K
Cap Rate 9%
$308,700
$308.7K
Market Conditions
NOI Build-Up for 2,100 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
$44.1K $21.00/SF
− Vacancy
−$7.1K −$3.36/SF
EGI
$37.0K $17.64/SF
− OpEx
−$9.3K −$4.41/SF
NOI
$27.8K $13.23/SF
Area
Knoxville, TN
Vacancy
16.00%
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%
$555,660
Cap Rate 7%
$396,900
Cap Rate 9%
$308,700
Alternative Uses
Best Use
Office B
$396.9K
$347.3K – $463.1K
NOI $27,783 @ 7.0% cap · market cap 5.05%
Second Best
Warehouse
$260.3K
$227.7K – $303.6K
NOI $18,218 @ 7.0% cap · market cap 3.31%
Theoretical Best
Office A
$520.1K
$455.1K – $606.8K
NOI $36,409 @ 7.0% cap · market cap 6.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
334
Businesses Nearby
Explore this area
Business Placement
Demographics for 37919, TN
30,822
Population
15,499
Households
2
Avg Household Size
38
Median Age
58%
College-Educated
95%
High-School Grad
19.1 sq mi
ZIP Area
1,614
Density / Sq Mi
$71,863
Median Household Income
$44,968
Median Earnings
$1,247
Median Rent
$453,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Two office structures provide multiple work areas, reception spaces, support rooms, and rear storage and garage functionality.
Where is this office building located?
The property is located at 3045 Sutherland Ave Knoxville, TN.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Two office buildings at 3045 and 3049 Sutherland Avenue; 1,088‑square‑foot office building with 2 restrooms and unfinished basement; 2,100‑square‑foot office building with conference room and rear garage
