Storefront Property with Flexible
For Sale
$2,000,000
3920 Dayton Boulevard, Chattanooga, TN 37415
Open commercial space with rear parking access via Redding Road and proximity to US-27.
Property Size11,262 SF
Price / SF$177.59
Days on Market41
Property Features for 3920 Dayton Boulevard
General Information
Standard status
Active
Size
11,262 SF
Net Operating Income
$132,969
Additional Details
Asking Price
$2,000,000
Highway Access
Yes
Building Details
Year Built
1930
Listing Agency:
REAL Broker
(423) 529-0696
Listed By:
Corey Ballew · License #332263
Source:
Weathersbeerealty
Added: Jul 20
Changed: Aug 28
Last Checked: Aug 29 at 11:47AM
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 REAL Broker
Investment Insights
Based on property information with market context.
This 11,262-square-foot storefront property, built in 1930, offers an open commercial layout suited to retail displays, vendor booths, showrooms, galleries, specialty markets, creative studios, or event space. The interior configuration supports flexible commercial concepts, including multi-vendor and specialty retail formats.
The property is located at 3920 Dayton Boulevard in Red Bank, with access to parking behind the building via Redding Road. Its Dayton Boulevard setting places the property near US-27 and downtown Chattanooga, with surrounding restaurants, neighborhood retail, and established residential areas. The corridor also connects local traffic with commuters traveling between downtown Chattanooga and northern Hamilton County.
The property is located at 3920 Dayton Boulevard in Red Bank, with access to parking behind the building via Redding Road. Its Dayton Boulevard setting places the property near US-27 and downtown Chattanooga, with surrounding restaurants, neighborhood retail, and established residential areas. The corridor also connects local traffic with commuters traveling between downtown Chattanooga and northern Hamilton County.
Key Highlights
- 11,262‑square‑foot storefront property at 3920 Dayton Boulevard
- Built in 1930
- Open layout accommodates retail displays, vendor booths, showrooms, galleries, or event 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
$87,033
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
4.35%
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%
$1,740,660
$1.7M
Cap Rate 7%
$1,243,329
$1.2M
Cap Rate 9%
$967,033
$967.0K
Market Conditions
NOI Build-Up for 11,262 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
$135.1K $12.00/SF
− Vacancy
−$10.8K −$0.96/SF
EGI
$124.3K $11.04/SF
− OpEx
−$37.3K −$3.31/SF
NOI
$87.0K $7.73/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$12.00 /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%
$1,740,660
Cap Rate 7%
$1,243,329
Cap Rate 9%
$967,033
Alternative Uses
Best Use
Retail
$1.24M
$1.09M – $1.45M
NOI $87,033 @ 7.0% cap · market cap 4.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.49M
$2.18M – $2.90M
NOI $174,109 @ 7.0% cap · market cap 8.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
362
Businesses Nearby
105k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Shops & Services 32%
Groceries 27%
Beauty & Spa 1%
Food City
Groceries
28,948 visits/mo
0.1 miles
MAPCO Mart
Shops & Services
21,577 visits/mo
0.3 miles
Jack's Family Restaurants
Dining
10,090 visits/mo
0.3 miles
SONIC Drive In
Dining
9,007 visits/mo
0.4 miles
Hardee's
Dining
8,240 visits/mo
0.3 miles
Demographics for 37415, TN
23,580
Population
11,970
Households
2
Avg Household Size
38
Median Age
45%
College-Educated
95%
High-School Grad
17.5 sq mi
ZIP Area
1,347
Density / Sq Mi
$67,027
Median Household Income
$42,933
Median Earnings
$1,240
Median Rent
$261,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Open commercial space with rear parking access via Redding Road and proximity to US-27.
Where is this storefront property located?
The property is located at 3920 Dayton Boulevard Chattanooga, TN.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 11,262‑square‑foot storefront property at 3920 Dayton Boulevard; Built in 1930; Open layout accommodates retail displays, vendor booths, showrooms, galleries, or event space
