Steel-Frame Warehouse with Roll-Up
For Sale
$375,000
3377 E Stone Dr, Kingsport, TN 37660
Leased steel-frame warehouse with three 12' roll-up doors and fenced outdoor storage along East Stone Drive.
Property Size5,000 SF
Price / SF$75
Days on Market133
Property Features for 3377 E Stone Dr
General Information
Standard status
Active
Size
5,000 SF
Zoning
M1R
Occupancy
100%
Site & Location
Traffic Count
22,500 vehicles/day
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Utilities to Site
Yes
Additional Details
Clear Height
16 ft
Building Details
Construction
steel-frame
Tenancy
Single
Listing Agency:
TCI Group - Jerry Petzoldt Agency, LLC
(423) 430-4215
Listed By:
Ed Mahaffey · License #355986
(423) 430-4215
Source:
Exprealty
Added: Apr 13
Changed: Aug 23
Last Checked: Aug 23 at 4:05AM
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 TCI Group - Jerry Petzoldt Agency, LLC
Investment Insights
Based on property information with market context.
3377 E Stone Dr presents a steel-frame warehouse configured for automotive or light industrial use, featuring durable crimped steel siding and a metal roof. The building includes three 12' x 12' roll-up doors and approximately 16' ceiling height, along with ample outdoor storage on a level, fully fenced lot.
The property is positioned along Highway 11W (East Stone Drive) in a highly visible commercial corridor, with approximately 22,500 vehicles per day. Zoned M1R and located within the Kingsport city limits, the site is serviced by public water and sewer.
The warehouse is currently leased to a collision repair operator under a 2-year lease, with the tenant responsible for utilities. Sale will be subject to the current tenant’s rights under the existing lease. An additional property is available on an adjoining lot under a separate listing at 3379 E Stone Drive.
The property is positioned along Highway 11W (East Stone Drive) in a highly visible commercial corridor, with approximately 22,500 vehicles per day. Zoned M1R and located within the Kingsport city limits, the site is serviced by public water and sewer.
The warehouse is currently leased to a collision repair operator under a 2-year lease, with the tenant responsible for utilities. Sale will be subject to the current tenant’s rights under the existing lease. An additional property is available on an adjoining lot under a separate listing at 3379 E Stone Drive.
Key Highlights
- 15,000 SF steel‑frame warehouse currently leased to a collision repair operator under a 2‑year lease
- Lease income of $30,000 annually; tenant responsible for utilities; about 2 years remaining on the lease term
- Level, fully fenced lot along Highway 11W (East Stone Drive) with approx. 22,500 vehicles/day traffic count
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
$33,117
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
8.83%
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%
$662,340
$662.3K
Cap Rate 7%
$473,100
$473.1K
Cap Rate 9%
$367,967
$368.0K
Market Conditions
NOI Build-Up for 5,000 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
$49.8K $9.96/SF
− Vacancy
−$2.5K −$0.50/SF
EGI
$47.3K $9.46/SF
− OpEx
−$14.2K −$2.84/SF
NOI
$33.1K $6.62/SF
Area
Sullivan County, TN
Vacancy
5.00%
Lease Rate
$9.96 /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%
$662,340
Cap Rate 7%
$473,100
Cap Rate 9%
$367,967
Alternative Uses
Best Use
Retail
$1.10M
$965.7K – $1.29M
NOI $77,253 @ 7.0% cap · market cap 20.60%
Second Best
Warehouse
$574.5K
$502.7K – $670.2K
NOI $40,214 @ 7.0% cap · market cap 10.72%
Theoretical Best
Office A
$1.87M
$1.64M – $2.18M
NOI $131,069 @ 7.0% cap · market cap 34.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
22,500 VPD
Traffic count
100%
Occupancy
Single-tenant
Tenancy
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
75
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37660, TN
39,479
Population
20,405
Households
1.9
Avg Household Size
45
Median Age
24%
College-Educated
88%
High-School Grad
65.7 sq mi
ZIP Area
601
Density / Sq Mi
$46,913
Median Household Income
$34,164
Median Earnings
$833
Median Rent
$177,800
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Leased steel-frame warehouse with three 12' roll-up doors and fenced outdoor storage along East Stone Drive.
Where is this warehouse located?
The property is located at 3377 E Stone Dr Kingsport, TN.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: 15,000 SF steel‑frame warehouse currently leased to a collision repair operator under a 2‑year lease; Lease income of $30,000 annually; tenant responsible for utilities; about 2 years remaining on the lease term; Level, fully fenced lot along Highway 11W (East Stone Drive) with approx. 22,500 vehicles/day traffic count
