Two-Story Office
For Sale
$3,500,000
3117 Pellissippi Parkway, Knoxville, TN 37931
Office property with private rooms, flexible work areas, conference facilities, and an employee breakroom with kitchen.
Property Size20,320 SF
Lot Size12.50 Acres
Days on Market53
Property Features for 3117 Pellissippi Parkway
General Information
Standard status
Active
Size
20,320 SF
Class
B
Lot size
12.50 Acres
Property subtype
Office
Additional Details
Road Access
Yes
Building Details
Building Size
20,320 SF
Buildings
1
Stories
2
Listing Agency:
NAI Koella RM Moore
(865) 755-8774
Listed By:
Roger M. Moore, Jr, SIOR
(865) 755-8774
Source:
Koellamoore
Added: Jul 11
Changed: Aug 31
Last Checked: Aug 31 at 4:06PM
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 NAI Koella RM Moore
Investment Insights
Based on property information with market context.
This two-story office building offers a varied layout for administrative and professional operations. The interior includes numerous private offices, expansive areas suitable for employee cubicles, substantial storage and filing space, two large conference or training rooms, and an employee breakroom with kitchen facilities.
The property occupies 12.5 AC along Pellissippi Parkway in Knoxville, with frontage and signage opportunities on the parkway. Access is also provided from Rather Rd., supporting ingress and egress from an additional approach. On-site parking is available, complementing the building’s office configuration.
The property occupies 12.5 AC along Pellissippi Parkway in Knoxville, with frontage and signage opportunities on the parkway. Access is also provided from Rather Rd., supporting ingress and egress from an additional approach. On-site parking is available, complementing the building’s office configuration.
Key Highlights
- 12.5 AC office property along Pellissippi Parkway in Knoxville
- Two‑story building with numerous private offices and large work areas
- Two large conference or training rooms
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
$268,834
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
7.68%
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%
$5,376,680
$5.4M
Cap Rate 7%
$3,840,486
$3.8M
Cap Rate 9%
$2,987,044
$3.0M
Market Conditions
NOI Build-Up for 20,320 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
$426.7K $21.00/SF
− Vacancy
−$68.3K −$3.36/SF
EGI
$358.4K $17.64/SF
− OpEx
−$89.6K −$4.41/SF
NOI
$268.8K $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%
$5,376,680
Cap Rate 7%
$3,840,486
Cap Rate 9%
$2,987,044
Alternative Uses
Best Use
Office B
$3.84M
$3.36M – $4.48M
NOI $268,834 @ 7.0% cap · market cap 7.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.03M
$4.40M – $5.87M
NOI $352,300 @ 7.0% cap · market cap 10.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
43
Businesses Nearby
Explore this area
Business Placement
Demographics for 37931, TN
31,358
Population
12,770
Households
2.5
Avg Household Size
38
Median Age
45%
College-Educated
94%
High-School Grad
28.4 sq mi
ZIP Area
1,104
Density / Sq Mi
$91,284
Median Household Income
$52,207
Median Earnings
$1,450
Median Rent
$317,100
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?
Office building - Office property with private rooms, flexible work areas, conference facilities, and an employee breakroom with kitchen.
Where is this office building located?
The property is located at 3117 Pellissippi Parkway Knoxville, TN.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 12.5 AC office property along Pellissippi Parkway in Knoxville; Two‑story building with numerous private offices and large work areas; Two large conference or training rooms
