Industrial Facility with Office
For Sale
$1,799,000
3275 Newport Highway, Sevierville, TN 37876
14,800 SF industrial facility with warehouse and office space.
Property Size14,800 SF
Lot Size0.80 Acres
Price / SF$121.55
Days on Market137
Property Features for 3275 Newport Highway
General Information
Standard status
Active
Size
14,800 SF
Lot size
0.80 Acres
Property subtype
Industrial
Listing Agency:
CBRE, Inc.
(865) 498-6500
Listed By:
Brian Tapp, SIOR, CCIM · License #351092
(865) 498-6500
Source:
Cbre
Added: Mar 25
Changed: Aug 8
Last Checked: Aug 8 at 2:37PM
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 CBRE, Inc.
Investment Insights
Based on property information with market context.
Located along Newport Highway, between Sevierville and Newport, this 14,800 SF industrial facility features a combination of warehouse and office space. The building includes 8,400 SF of warehouse space with 19'–22'10" ceiling heights, five drive-in doors, and 600-amp, 3-phase power. The 6,400 SF of two-story office space can accommodate administrative, sales, or training functions. Positioned on 0.8 acres and zoned I-1, the property offers appeal for owner-occupiers seeking space within Sevier County’s industrial market. The column spacing is 40' x 20'.
Key Highlights
- 14,800 SF industrial facility with 6,400 SF of office space.
- 8,400 SF of warehouse space** with 19'-22'10" ceiling heights.
- Five drive‑in doors for efficient warehouse operations.
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
$142,620
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
7.93%
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%
$2,852,400
$2.9M
Cap Rate 7%
$2,037,429
$2.0M
Cap Rate 9%
$1,584,667
$1.6M
Market Conditions
NOI Build-Up for 14,800 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
$213.1K $14.40/SF
− Vacancy
−$9.4K −$0.63/SF
EGI
$203.7K $13.77/SF
− OpEx
−$61.1K −$4.13/SF
NOI
$142.6K $9.64/SF
Area
Sevier County, TN
Vacancy
4.40%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$2,852,400
Cap Rate 7%
$2,037,429
Cap Rate 9%
$1,584,667
Alternative Uses
Best Use
Office B
$3.00M
$2.62M – $3.50M
NOI $209,710 @ 7.0% cap · market cap 11.66%
Second Best
Warehouse
$2.47M
$2.16M – $2.89M
NOI $173,181 @ 7.0% cap · market cap 9.63%
Theoretical Best
Office A
$6.24M
$5.46M – $7.28M
NOI $436,896 @ 7.0% cap · market cap 24.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
81
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37876, TN
32,866
Population
18,206
Households
1.8
Avg Household Size
45
Median Age
22%
College-Educated
89%
High-School Grad
186.8 sq mi
ZIP Area
176
Density / Sq Mi
$58,513
Median Household Income
$33,603
Median Earnings
$997
Median Rent
$257,800
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?
Flex space - 14,800 SF industrial facility with warehouse and office space.
Where is this flex space located?
The property is located at 3275 Newport Highway Sevierville, TN.
What is the asking price?
The asking price for this property is $1,799,000.
What are key features of this property?
This property features: 14,800 SF industrial facility with **6,400 SF of office space**.; 8,400 SF of warehouse space** with 19'-22'10" ceiling heights.; Five drive‑in doors for efficient warehouse operations.
