Partially Leased Office
For Sale
Contact for pricing
320 Cheshire Dr, Knoxville, TN 37919
High-end office building offers premium space with an established tenant and convenient access from Kingston Pike.
Property Size10,000 SF
Price / SF$295
Days on Market776
Property Features for 320 Cheshire Dr
General Information
Standard status
Active
Size
10,000 SF
Property subtype
OFFICE
Additional Details
Road Access
Yes
Building Details
Buildings
1
Building Size
10,000 SF
Listing Agency:
Holrob
(865) 637-3770
Listed By:
Mark Shipe · License #278541
(865) 342-8716
Source:
Moodyscre
Added: Jul 30, 2024
Changed: Sep 11
Last Checked: Sep 13 at 7:19AM
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 Holrob
Investment Insights
Based on property information with market context.
This high-end office building totals 10,000 square feet and is partially leased, with an established tenant providing immediate rental income. In addition to the occupied space, there is 4,230 square feet of premium office space available, supporting a range of office needs within the same building.
The property is positioned in West Knoxville in the Bearden area, with convenient access from Kingston Pike and Deane Hill. The site includes abundant on-site parking for employees and visitors, and offers accessibility to surrounding retail, restaurants, and major thoroughfares.
If you’re looking for an office asset with existing tenancy and functional parking for day-to-day operations, this building on Cheshire Drive is designed to accommodate office use in a convenient part of West Knoxville.
The property is positioned in West Knoxville in the Bearden area, with convenient access from Kingston Pike and Deane Hill. The site includes abundant on-site parking for employees and visitors, and offers accessibility to surrounding retail, restaurants, and major thoroughfares.
If you’re looking for an office asset with existing tenancy and functional parking for day-to-day operations, this building on Cheshire Drive is designed to accommodate office use in a convenient part of West Knoxville.
Key Highlights
- 10,000 SF high‑end office building in West Knoxville
- 4,230 SF of premium office space available
- Partially leased with an established tenant providing immediate rental income
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
$132,300
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
4.48%
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%
$2,646,000
$2.6M
Cap Rate 7%
$1,890,000
$1.9M
Cap Rate 9%
$1,470,000
$1.5M
Market Conditions
NOI Build-Up for 10,000 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
$210.0K $21.00/SF
− Vacancy
−$33.6K −$3.36/SF
EGI
$176.4K $17.64/SF
− OpEx
−$44.1K −$4.41/SF
NOI
$132.3K $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%
$2,646,000
Cap Rate 7%
$1,890,000
Cap Rate 9%
$1,470,000
Alternative Uses
Best Use
Office B
$1.89M
$1.65M – $2.21M
NOI $132,300 @ 7.0% cap · market cap 4.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.48M
$2.17M – $2.89M
NOI $173,376 @ 7.0% cap · market cap 5.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
776
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
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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 - High-end office building offers premium space with an established tenant and convenient access from Kingston Pike.
Where is this office building located?
The property is located at 320 Cheshire Dr Knoxville, TN.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: 10,000 SF high‑end office building in West Knoxville; 4,230 SF of premium office space available; Partially leased with an established tenant providing immediate rental income
