Office Building with Walk-Out Lower
For Sale
Contact for pricing
4509 Papermill Dr, Knoxville, TN 37909
Flexible office property with separate entrances, on-site parking, and room for multiple business users.
Property Size3,774 SF
Lot Size2.00 Acres
Price / SF$314.74
Days on Market14
Property Features for 4509 Papermill Dr
General Information
Standard status
Active
Size
3,774 SF
Lot size
2.00 Acres
Property subtype
OFFICE
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Buildings
1
Stories
2
Building Size
3,774 SF
Listing Agency:
Maddox Property Sales
(865) 567-4444
Listed By:
Clark Gross · License #369008
(865) 567-4444
Source:
Moodyscre
Added: Jul 29
Changed: Aug 9
Last Checked: Aug 10 at 6:30AM
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 Maddox Property Sales
Investment Insights
Based on property information with market context.
This office building provides a structured professional setting with seven private offices, an executive suite paired with an assistant’s office, a reception area, conference room, kitchen, four restrooms, IT/server room, and two storage areas on the main level. The walk-out lower level adds three private offices, storage, a restroom, private access, and dedicated parking, allowing the space to function independently from the upper portion.
The property occupies approximately two acres on Papermill Drive in Knoxville, with a prominent monument sign, convenient access to I-40/I-75, and on-site parking. The land also includes room for a potential additional building, subject to applicable approvals. The combination of a defined main-level layout and separately accessible lower-level space supports owner occupancy with the possibility of leasing the lower portion to another business.
The property occupies approximately two acres on Papermill Drive in Knoxville, with a prominent monument sign, convenient access to I-40/I-75, and on-site parking. The land also includes room for a potential additional building, subject to applicable approvals. The combination of a defined main-level layout and separately accessible lower-level space supports owner occupancy with the possibility of leasing the lower portion to another business.
Key Highlights
- Main level includes 7 private offices, reception, conference room, kitchen, 4 restrooms, IT/server room, and 2 storage areas
- Walk‑out lower level features 3 private offices, storage, a private restroom, separate entrance, and dedicated parking
- Approximately two acres with room for a potential additional building, subject to applicable approvals
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
$62,843
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
4.20%
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%
$1,256,860
$1.3M
Cap Rate 7%
$897,757
$897.8K
Cap Rate 9%
$698,256
$698.3K
Market Conditions
NOI Build-Up for 4,750 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
$99.8K $21.00/SF
− Vacancy
−$16.0K −$3.36/SF
EGI
$83.8K $17.64/SF
− OpEx
−$20.9K −$4.41/SF
NOI
$62.8K $13.23/SF
Area
Knoxville, TN
Vacancy
16.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,256,860
Cap Rate 7%
$897,757
Cap Rate 9%
$698,256
Alternative Uses
Best Use
Office B
$897.8K
$785.5K – $1.05M
NOI $62,843 @ 7.0% cap · market cap 4.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.18M
$1.03M – $1.37M
NOI $82,354 @ 7.0% cap · market cap 5.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
727
Businesses Nearby
Explore this area
Business Placement
Demographics for 37909, TN
16,066
Population
8,076
Households
2
Avg Household Size
35
Median Age
45%
College-Educated
94%
High-School Grad
6.8 sq mi
ZIP Area
2,363
Density / Sq Mi
$61,365
Median Household Income
$36,974
Median Earnings
$1,156
Median Rent
$273,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Flexible office property with separate entrances, on-site parking, and room for multiple business users.
Where is this office building located?
The property is located at 4509 Papermill Dr Knoxville, TN.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: Main level includes 7 private offices, reception, conference room, kitchen, 4 restrooms, IT/server room, and 2 storage areas; Walk‑out lower level features 3 private offices, storage, a private restroom, separate entrance, and dedicated parking; Approximately two acres with room for a potential additional building, subject to applicable approvals
