Secured Industrial Property with Development
For Sale
Contact for pricing
4015 Dodds Avenue, Chattanooga, TN 37407
15,523 SF industrial building on 2.5 acres for sale.
Property Size15,523 SF
Lot Size2.50 Acres
Price / SF$109.45
Days on Market110
Property Features for 4015 Dodds Avenue
General Information
Standard status
Active
Size
15,523 SF
Lot size
2.50 Acres
Property subtype
Industrial, Land
Zoning
Heavy Industrial (I-H)
Investment Type
Owner/User
Building Details
Year Built
1950
Year Renovated
2025
Buildings
1
Listing Agency:
David Barrueta Associates
Listed By:
David Barrueta · License #TN 301385
Source:
Crexi
Added: May 14
Changed: Aug 24
Last Checked: Aug 29 at 8:53PM
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 David Barrueta Associates
Investment Insights
Based on property information with market context.
This property features a 15,523 SF building, including 1,818 SF of finished office space and 13,705 SF of warehouse area, situated on a 2.50-acre fully fenced and secured lot. The site offers an area to develop an approximately 15,000 SF additional building. The warehouse has a 14.5' clear ceiling height and is equipped with four overhead doors: one on-grade door (14'x14') and three dock-height doors. It has 3-phase power. Zoned Heavy Industrial (I-H), the property accommodates a wide range of uses. It provides easy access to I-24 and downtown Chattanooga. The property has had stabilized tenancy over the past five years and is now available for new occupancy.
Key Highlights
- 15,523 SF total building area with 1,818 SF of finished office space and 13,705 SF warehouse
- Expansive 2.50 acres, fully fenced and secured, offering development potential for approximately 15,000 SF additional building
- Heavy Industrial (I‑H) zoning allows for diverse business operations
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
$94,732
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
5.58%
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%
$1,894,640
$1.9M
Cap Rate 7%
$1,353,314
$1.4M
Cap Rate 9%
$1,052,578
$1.1M
Market Conditions
NOI Build-Up for 15,523 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
$115.5K $7.44/SF
− Vacancy
−$4.0K −$0.26/SF
EGI
$111.4K $7.18/SF
− OpEx
−$16.7K −$1.08/SF
NOI
$94.7K $6.10/SF
Area
Chattanooga, TN
Vacancy
3.50%
Lease Rate
$7.44 /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%
$1,894,640
Cap Rate 7%
$1,353,314
Cap Rate 9%
$1,052,578
Alternative Uses
Best Use
Office B
$2.54M
$2.23M – $2.97M
NOI $178,126 @ 7.0% cap · market cap 10.48%
Second Best
Warehouse
$1.35M
$1.18M – $1.58M
NOI $94,732 @ 7.0% cap · market cap 5.58%
Theoretical Best
Office A
$3.43M
$3.00M – $4.00M
NOI $239,983 @ 7.0% cap · market cap 14.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
448
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37407, TN
9,779
Population
3,540
Households
2.8
Avg Household Size
28
Median Age
7%
College-Educated
57%
High-School Grad
3.4 sq mi
ZIP Area
2,876
Density / Sq Mi
$33,785
Median Household Income
$27,018
Median Earnings
$891
Median Rent
$84,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Safebox Self Storage — 1500 E 41st St, Chattanooga, TN 37407
- Fox Moving and Storage of Chattanooga — 3475 8th Ave, Chattanooga, TN 37407
Frequently Asked Questions
What type of property is this?
Warehouse - 15,523 SF industrial building on 2.5 acres for sale.
Where is this warehouse located?
The property is located at 4015 Dodds Avenue Chattanooga, TN.
What is the asking price?
The asking price for this property is $1,699,000.
What are key features of this property?
This property features: 15,523 SF total building area with 1,818 SF of finished office space and 13,705 SF warehouse; Expansive 2.50 acres, fully fenced and secured, offering development potential for approximately 15,000 SF additional building; Heavy Industrial (I‑H) zoning allows for diverse business operations
