Commercial Property in EDGE
For Sale
Contact for pricing
433 Madison Ave, Memphis, TN 38103
Versatile commercial property in Memphis's vibrant EDGE district.
Property Size4,210 SF
Price / SF$142.52
Days on Market1181
Property Features for 433 Madison Ave
General Information
Standard status
Active
Size
4,210 SF
Class
C
Property subtype
Hospitality, Mixed Use, Office, Retail
Zoning
CMU
Investment Type
Redevelopment
Building Details
Year Built
1903
Buildings
1
Listing Agency:
Universal Commercial Real Estate LLC
(901) 249-9744
Listed By:
Darrell Cobbins · License #278933
Source:
Crexi
Added: Jun 9, 2023
Changed: Aug 8
Last Checked: Aug 29 at 8:38PM
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 Universal Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
Located in the EDGE district of downtown Memphis, 433 Madison Ave. is a commercial property offering a prime location with visibility and access to major highways. The property provides over 4,000 square feet of space suitable for customization. Large windows provide natural light, creating an inviting atmosphere. The open floor plan allows for flexibility in designing a workspace. The EDGE district is a hub of activity, attracting a mix of businesses and visitors. The property is in close proximity to restaurants, shops, and entertainment venues. Neighboring businesses and amenities within one block include The Ravine, Memphis Made Brewery, Tomorrow Building, University Lofts, The RISE Apartments, and The Bakery Garage.
Key Highlights
- Prime location in the vibrant EDGE district of downtown Memphis.
- Over 4,000 square feet of versatile space customizable for various business needs.
- Excellent visibility and easy access to major highways.
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
$51,152
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
8.53%
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%
$1,023,040
$1.0M
Cap Rate 7%
$730,743
$730.7K
Cap Rate 9%
$568,356
$568.4K
Market Conditions
NOI Build-Up for 4,210 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
$90.9K $21.60/SF
− Vacancy
−$9.1K −$2.16/SF
EGI
$81.8K $19.44/SF
− OpEx
−$30.7K −$7.29/SF
NOI
$51.2K $12.15/SF
Area
Memphis, TN
Vacancy
10.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,023,040
Cap Rate 7%
$730,743
Cap Rate 9%
$568,356
Alternative Uses
Best Use
Office B
$920.2K
$805.2K – $1.07M
NOI $64,413 @ 7.0% cap · market cap 10.74%
Second Best
Mixed Use
$730.7K
$639.4K – $852.5K
NOI $51,152 @ 7.0% cap · market cap 8.53%
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $87,096 @ 7.0% cap · market cap 14.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,017
Businesses Nearby
Explore this area
Business Placement
Demographics for 38103, TN
14,739
Population
8,811
Households
1.7
Avg Household Size
35
Median Age
61%
College-Educated
95%
High-School Grad
2.7 sq mi
ZIP Area
5,459
Density / Sq Mi
$75,763
Median Household Income
$60,918
Median Earnings
$1,575
Median Rent
$380,900
Median Home Value
Market
Vacancy Rate% for Office in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile commercial property in Memphis's vibrant EDGE district.
Where is this mixed-use property located?
The property is located at 433 Madison Ave Memphis, TN.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Prime location in the vibrant EDGE district of downtown Memphis.; Over 4,000 square feet of versatile space customizable for various business needs.; Excellent visibility and easy access to major highways.
