Flex Space with Automatic Garage
For Sale
$1,600,000
401 Tilthammer Drive, Kingsport, TN 37663
COMMERCIAL - Kingsport, TN
Property Size8,000 SF
Lot Size2.43 Acres
Price / SF$200
Days on Market146
Property Features for 401 Tilthammer Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
M1R
Subdivision
Not In Subdivision
Directions
Manor Drive to Tilthammer Rd. To end of road. Property on the Right.
Standard status
Active
APN
045n B 051.00
Size
8,000 SF
Lot size
2.43 Acres
Taxes and HOA fees
Tax Annual Amount
2837
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Natural Gas
Water source
Public
Building Details
Year built
1999
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
CENTURY 21 Legacy - Greeneville · Century 21 Real Estate
(423) 639-6781
Listed By:
Michael McNeese · License #290535
(423) 552-5330
Added: Mar 20
Changed: Aug 4
Last Checked: Aug 12 at 11:06PM
MLS# 9992647
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. 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.
401 Tilthammer Drive in Kingsport, Tennessee offers a flexible M1R industrial property with two metal-sided buildings totaling 8,000 square feet on 2.43 acres. Built in 1999, the main building provides 5,000 square feet and is laid out for heavy-duty operations, with four 14-foot automatic garage doors. Heating is provided by natural gas with dual heaters on each side, and the space includes two restrooms, a security system, and a compressed air system with compressor, along with additional storage above office areas.
The secondary 3,000-square-foot building includes four 12-foot manual garage doors, office space with heating, one restroom, and a compressed air system with compressor. Public water and public sewer are available, and cable is available. The property was previously used as a bus garage and is set up for a range of fleet, service, manufacturing, or warehousing functions.
This is a practical configuration for tenants or operators seeking dedicated garage-door access plus on-site shop and office support across two buildings.
The secondary 3,000-square-foot building includes four 12-foot manual garage doors, office space with heating, one restroom, and a compressed air system with compressor. Public water and public sewer are available, and cable is available. The property was previously used as a bus garage and is set up for a range of fleet, service, manufacturing, or warehousing functions.
This is a practical configuration for tenants or operators seeking dedicated garage-door access plus on-site shop and office support across two buildings.
Key Highlights
- 2.43‑acre M1R flex space at 401 Tilthammer Drive in Kingsport, TN
- Two buildings totaling 8,000 SF: 5,000 SF main building and 3,000 SF secondary building
- Main building has four 14‑foot automatic garage doors
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
$64,342
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
4.02%
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%
$1,286,840
$1.3M
Cap Rate 7%
$919,171
$919.2K
Cap Rate 9%
$714,911
$714.9K
Market Conditions
NOI Build-Up for 8,000 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
$79.7K $9.96/SF
− Vacancy
−$4.0K −$0.50/SF
EGI
$75.7K $9.46/SF
− OpEx
−$11.4K −$1.42/SF
NOI
$64.3K $8.04/SF
Area
Sullivan County, TN
Vacancy
5.00%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
15.00%
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%
$1,286,840
Cap Rate 7%
$919,171
Cap Rate 9%
$714,911
Alternative Uses
Best Use
Warehouse
$919.2K
$804.3K – $1.07M
NOI $64,342 @ 7.0% cap · market cap 4.02%
Second Best
Flex RnD
$829.0K
$725.4K – $967.2K
NOI $58,032 @ 7.0% cap · market cap 3.63%
Theoretical Best
Office A
$3.00M
$2.62M – $3.50M
NOI $209,710 @ 7.0% cap · market cap 13.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37663, TN
14,392
Population
6,679
Households
2.2
Avg Household Size
47
Median Age
34%
College-Educated
95%
High-School Grad
25.8 sq mi
ZIP Area
558
Density / Sq Mi
$76,122
Median Household Income
$45,399
Median Earnings
$886
Median Rent
$224,900
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?
Flex space - Zoned M1R flex space with two industrial buildings, multiple garage doors, and natural gas heating.
Where is this flex space located?
The property is located at 401 Tilthammer Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 2.43‑acre M1R flex space at 401 Tilthammer Drive in Kingsport, TN; Two buildings totaling 8,000 SF: 5,000 SF main building and 3,000 SF secondary building; Main building has four 14‑foot automatic garage doors
