Renovated Medical
For Sale
Contact for pricing
3708-3710 Neal Dr, Knoxville, TN 37918
Clinic layout includes exam rooms, a spacious lobby, ADA-compliant bathroom, and flexible office and break room areas.
Property Size1,440 SF
Lot Size0.88 Acres
Price / SF$347.22
Days on Market23
Property Features for 3708-3710 Neal Dr
General Information
Standard status
Active
Size
1,440 SF
Lot size
0.88 Acres
Property subtype
OFFICE
Zoning
OB
Amenities
exam rooms
sinks in every exam room
spacious lobby
ADA-compliant bathroom
office and break room options
large stone pillars for street-side sign visibility
Listing Agency:
Wallace Commercial
(865) 690-1111
Listed By:
Christa Rosenberg
(865) 309-4950
Source:
Moodyscre
Added: Aug 12
Changed: Sep 2
Last Checked: Sep 2 at 2:00PM
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 Wallace Commercial
Investment Insights
Based on property information with market context.
This 1,440-square-foot medical office at 3708-3710 Neal Dr features a recently renovated interior with three+ exam rooms, sinks in each exam room, and a spacious lobby. The layout also includes an ADA-compliant bathroom along with office and break room options. Stone pillars at the street side provide a defined location for property signage.
The property encompasses 0.88 acres (38,333 SF), including .5 acres of potentially buildable open land. OB zoning allows offices, clinics, child care, recreational uses, business services, and uses permitted or regulated within the RB General Residential Zone, subject to a height restriction.
The property encompasses 0.88 acres (38,333 SF), including .5 acres of potentially buildable open land. OB zoning allows offices, clinics, child care, recreational uses, business services, and uses permitted or regulated within the RB General Residential Zone, subject to a height restriction.
Key Highlights
- 1,440 SF renovated medical office
- Three+ exam rooms with sinks in every room
- Spacious lobby and ADA‑compliant bathroom
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
$19,051
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
3.81%
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%
$381,020
$381.0K
Cap Rate 7%
$272,157
$272.2K
Cap Rate 9%
$211,678
$211.7K
Market Conditions
NOI Build-Up for 1,440 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
$30.2K $21.00/SF
− Vacancy
−$4.8K −$3.36/SF
EGI
$25.4K $17.64/SF
− OpEx
−$6.4K −$4.41/SF
NOI
$19.1K $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%
$381,020
Cap Rate 7%
$272,157
Cap Rate 9%
$211,678
Alternative Uses
Best Use
Office B
$272.2K
$238.1K – $317.5K
NOI $19,051 @ 7.0% cap · market cap 3.81%
Second Best
Healthcare Medical
$261.7K
$229.0K – $305.3K
NOI $18,320 @ 7.0% cap · market cap 3.66%
Theoretical Best
Office A
$356.7K
$312.1K – $416.1K
NOI $24,966 @ 7.0% cap · market cap 4.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
473
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37918, TN
46,245
Population
20,228
Households
2.3
Avg Household Size
40
Median Age
31%
College-Educated
93%
High-School Grad
34.6 sq mi
ZIP Area
1,337
Density / Sq Mi
$69,311
Median Household Income
$41,882
Median Earnings
$1,102
Median Rent
$237,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- The Gentle Doctor of East Tennessee — 3524 Neal Dr, Knoxville, TN 37918
- Halls Animal Hospital — 7126 Maynardville Pike, Knoxville, TN 37918
Frequently Asked Questions
What type of property is this?
Medical Office Space - Clinic layout includes exam rooms, a spacious lobby, ADA-compliant bathroom, and flexible office and break room areas.
Where is this medical office space located?
The property is located at 3708-3710 Neal Dr Knoxville, TN.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: 1,440 SF renovated medical office; Three+ exam rooms with sinks in every room; Spacious lobby and ADA‑compliant bathroom
