Retail Building with
For Sale
$1,800,000
3360 Wears Valley Rd./ Hwy 321, Sevierville, TN 37862
Commercial Sale, Sevierville, TN
Property Size5,080 SF
Lot Size0.96 Acres
Price / SF$354.33
Days on Market346
Property Features for 3360 Wears Valley Rd./ Hwy 321
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
c-2
Parking
20
Lot features
Corner Lot, Level, Views
Elementary school
Wearwood Elementary
Middle school
Pigeon Forge Junior High
High school
Pigeon Forge High
Directions
From Pigeon Forge at traffic light #3. Go 5.5 miles. Property is on right, just past Brown Squirrel and across from Ft.Hills Parkway Entrance/Exit.
Subdivision
Wears Valley
Standard status
Active
APN
123 136.00
Size
5,080 SF
Lot size
0.96 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
2205
Utilities
Sewer type
Septic Tank
Cooling system
Electric, Central Air, Heat Pump
Water source
Well
Building Details
Year built
1995
Floors in Building
2
Listing Agency:
Mountain Realty Group
(865) 908-2909
Listed By:
Diane Shubert
(865) 582-1607
Added: Oct 10, 2025
Changed: Sep 13
Last Checked: Sep 20 at 12:06PM
MLS# 308608
Copyright © 2026 Great Smoky Mountains Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 5,080-square-foot retail property, built in 1995, includes commercial space suitable for retail or restaurant operations along with two apartments on the upper level. The building is served by a well and septic tank, with heat pump, electric, and central air cooling systems.
The property occupies 0.96 acres along Scenic Hwy 321 in Sevierville, near the Foothills Parkway and within reach of Townsend, Pigeon Forge, and the Smoky Mountains National Park entrance. C-2 zoning supports its commercial positioning, while mountain views and highway frontage add to the site's physical setting.
The property occupies 0.96 acres along Scenic Hwy 321 in Sevierville, near the Foothills Parkway and within reach of Townsend, Pigeon Forge, and the Smoky Mountains National Park entrance. C-2 zoning supports its commercial positioning, while mountain views and highway frontage add to the site's physical setting.
Key Highlights
- 5,080‑square‑foot retail property on 0.96 acres
- C‑2 zoning supports commercial retail or restaurant use
- Two apartments located above the commercial space
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
$66,147
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%
$1,322,940
$1.3M
Cap Rate 7%
$944,957
$945.0K
Cap Rate 9%
$734,967
$735.0K
Market Conditions
NOI Build-Up for 5,080 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
$90.8K $17.88/SF
− Vacancy
−$2.6K −$0.52/SF
EGI
$88.2K $17.36/SF
− OpEx
−$22.0K −$4.34/SF
NOI
$66.1K $13.02/SF
Area
Sevier County, TN
Vacancy
2.90%
Lease Rate
$17.88 /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%
$1,322,940
Cap Rate 7%
$944,957
Cap Rate 9%
$734,967
Alternative Uses
Best Use
Specialty Retail
$945.0K
$826.8K – $1.10M
NOI $66,147 @ 7.0% cap · market cap 3.67%
Second Best
Retail
$887.9K
$776.9K – $1.04M
NOI $62,152 @ 7.0% cap · market cap 3.45%
Theoretical Best
Office A
$2.14M
$1.87M – $2.50M
NOI $149,962 @ 7.0% cap · market cap 8.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
124
Businesses Nearby
Explore this area
Business Placement
Demographics for 37862, TN
23,236
Population
13,676
Households
1.7
Avg Household Size
43
Median Age
23%
College-Educated
87%
High-School Grad
81.8 sq mi
ZIP Area
284
Density / Sq Mi
$58,110
Median Household Income
$31,490
Median Earnings
$956
Median Rent
$283,800
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 Retail in South region
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Frequently Asked Questions
What type of property is this?
Retail space - C-2-zoned commercial property with retail or restaurant use and two upper-level apartments.
Where is this retail space located?
The property is located at 3360 Wears Valley Rd./ Hwy 321 Sevierville, TN.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 5,080‑square‑foot retail property on 0.96 acres; C‑2 zoning supports commercial retail or restaurant use; Two apartments located above the commercial space
