Fully Occupied Retail Strip
For Sale
Contact for pricing
3705 Malco Way, Memphis, TN 38125
Retail strip center with 100% occupancy across nine tenants totaling 28,458 square feet.
Property Size28,458 SF
Lot Size3.60 Acres
Price / SF$140.21
Days on Market545
Property Features for 3705 Malco Way
General Information
Standard status
Active
Size
28,458 SF
Lot size
3.60 Acres
Property subtype
RETAIL
Occupancy
100%
Additional Details
Cap Rate
8.4%
Building Details
Tenancy
Multi
Listing Agency:
NAI Saig Company - Memphis
Listed By:
Brian Califf · License ##299669
(901) 526-3100
Source:
Moodyscre
Added: Mar 17, 2025
Changed: Sep 10
Last Checked: Sep 12 at 11:15AM
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 Saig Company - Memphis
Investment Insights
Based on property information with market context.
This fully occupied retail strip center offers a total of 28,458 square feet across nine tenants. The property sits on 3.6 acres and is currently 100% leased.
The center is located at 3705 Malco Way in Memphis, Tennessee. Based on the provided financial information, the property has an in-place cap rate of 8.4%, with a stabilized cap rate at market rents of 11.2%.
The offering is structured for a stabilized, income-producing retail investment, supported by the current occupancy level and tenant count provided in the listing materials.
The center is located at 3705 Malco Way in Memphis, Tennessee. Based on the provided financial information, the property has an in-place cap rate of 8.4%, with a stabilized cap rate at market rents of 11.2%.
The offering is structured for a stabilized, income-producing retail investment, supported by the current occupancy level and tenant count provided in the listing materials.
Key Highlights
- Retail strip center totaling 28,458 SF on 3.6 acres
- 100% occupancy with 9 total tenants
- Current in‑place cap rate of 8.4%
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
$329,885
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
8.27%
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%
$6,597,700
$6.6M
Cap Rate 7%
$4,712,643
$4.7M
Cap Rate 9%
$3,665,389
$3.7M
Market Conditions
NOI Build-Up for 28,458 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
$512.2K $18.00/SF
− Vacancy
−$41.0K −$1.44/SF
EGI
$471.3K $16.56/SF
− OpEx
−$141.4K −$4.97/SF
NOI
$329.9K $11.59/SF
Area
ZIP 38125
Vacancy
8.00%
Lease Rate
$18.00 /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%
$6,597,700
Cap Rate 7%
$4,712,643
Cap Rate 9%
$3,665,389
Alternative Uses
Best Use
Retail
$4.71M
$4.12M – $5.50M
NOI $329,885 @ 7.0% cap · market cap 8.27%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.55M
$6.61M – $8.81M
NOI $528,636 @ 7.0% cap · market cap 13.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
452
Businesses Nearby
299k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 52%
Shops & Services 25%
Apparel 12%
Home Improvements & Furnishings 10%
Chick-fil-A
Dining
51,617 visits/mo
0.1 miles
The Home Depot
Home Improvements & Furnishings
29,901 visits/mo
0.5 miles
McDonald's
Dining
28,514 visits/mo
0.0 miles
Ross Dress for Less
Apparel
23,451 visits/mo
0.3 miles
Five Below
Shops & Services
22,983 visits/mo
0.3 miles
Demographics for 38125, TN
40,970
Population
16,435
Households
2.5
Avg Household Size
37
Median Age
37%
College-Educated
95%
High-School Grad
19.0 sq mi
ZIP Area
2,156
Density / Sq Mi
$83,184
Median Household Income
$45,793
Median Earnings
$1,440
Median Rent
$230,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Memphis, TN
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Frequently Asked Questions
What type of property is this?
Strip mall - Retail strip center with 100% occupancy across nine tenants totaling 28,458 square feet.
Where is this strip mall located?
The property is located at 3705 Malco Way Memphis, TN.
What is the asking price?
The asking price for this property is $3,990,000.
What are key features of this property?
This property features: Retail strip center totaling 28,458 SF on 3.6 acres; 100% occupancy with 9 total tenants; Current in‑place cap rate of 8.4%
