Two-Suite Flex
For Sale
Contact for pricing
405 E MAIN ST, Chattanooga, TN 37408
The building combines office and warehouse areas within two separate suites on a substantial commercial site.
Property Size91,990 SF
Lot Size4.12 Acres
Price / SF$94.03
Days on Market140
Property Features for 405 E MAIN ST
General Information
Standard status
Active
Size
91,990 SF
Lot size
4.12 Acres
Property subtype
Industrial, Special Purpose, Retail
Zoning
U-IX-4
Building Details
Year Built
1951
Buildings
1
Stories
1
Units
2
Building Size
91,990 SF
Tenancy
Multi
Listing Agency:
Hudson Commercial, LLC
(423) 486-1020
Listed By:
Lee Harper · License #TN 284738
Source:
Crexi
Added: Apr 13
Changed: Aug 30
Last Checked: Aug 30 at 4:25PM
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 Hudson Commercial, LLC
Investment Insights
Based on property information with market context.
This flex property includes a 91,990-square-foot office and warehouse building arranged as two suites. Constructed in 1951, the improvements occupy a 4.12-acre site and provide both office and warehouse components within one commercial asset.
The property is located at 405 E Main Street in Chattanooga, Hamilton County, Tennessee, within the Southside community. Zoning is U-IX-4. The combination of substantial building area, dual-suite configuration, and land area defines the property’s core physical profile.
The property is located at 405 E Main Street in Chattanooga, Hamilton County, Tennessee, within the Southside community. Zoning is U-IX-4. The combination of substantial building area, dual-suite configuration, and land area defines the property’s core physical profile.
Key Highlights
- 91,990‑square‑foot office and warehouse building
- 4.12‑acre commercial site
- Two‑suite configuration
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
$561,384
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
6.49%
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%
$11,227,680
$11.2M
Cap Rate 7%
$8,019,771
$8.0M
Cap Rate 9%
$6,237,600
$6.2M
Market Conditions
NOI Build-Up for 91,990 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
$684.4K $7.44/SF
− Vacancy
−$24.0K −$0.26/SF
EGI
$660.5K $7.18/SF
− OpEx
−$99.1K −$1.08/SF
NOI
$561.4K $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%
$11,227,680
Cap Rate 7%
$8,019,771
Cap Rate 9%
$6,237,600
Alternative Uses
Best Use
Office B
$15.08M
$13.19M – $17.59M
NOI $1,055,585 @ 7.0% cap · market cap 12.20%
Second Best
Flex RnD
$12.39M
$10.84M – $14.46M
NOI $867,484 @ 7.0% cap · market cap 10.03%
Theoretical Best
Office A
$20.32M
$17.78M – $23.70M
NOI $1,422,151 @ 7.0% cap · market cap 16.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,711
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37408, TN
3,353
Population
1,945
Households
1.7
Avg Household Size
33
Median Age
59%
College-Educated
96%
High-School Grad
2.1 sq mi
ZIP Area
1,597
Density / Sq Mi
$91,000
Median Household Income
$65,377
Median Earnings
$1,338
Median Rent
$460,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Bayou Bites Food Truck — 556 W Main St, Chattanooga, TN 37402
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- Chattanooga Catering — 232 E 11th St, Chattanooga, TN 37402
Frequently Asked Questions
What type of property is this?
Flex space - The building combines office and warehouse areas within two separate suites on a substantial commercial site.
Where is this flex space located?
The property is located at 405 E MAIN ST Chattanooga, TN.
What is the asking price?
The asking price for this property is $8,650,000.
What are key features of this property?
This property features: 91,990‑square‑foot office and warehouse building; 4.12‑acre commercial site; Two‑suite configuration
