Hixson Pike Restaurant/Retail
For Sale
Contact for pricing
5149 Hixson Pike, Chattanooga, TN 37343
Restaurant/retail space on Hixson Pike, includes established business.
Property Size4,428 SF
Price / SF$141.03
Days on Market161
Property Features for 5149 Hixson Pike
General Information
Standard status
Active
Size
4,428 SF
Class
B
Total Parking Spaces
15
Property subtype
Retail
Zoning
C-C
Occupancy
100%
Lease Type
Modified Gross
Building Details
Year Built
1926
Year Renovated
2000
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Keller Williams Realty
(423) 664-1600
Listed By:
Jeffrey Dodson · License #GA 336360
Source:
Crexi
Added: Mar 3
Changed: Aug 8
Last Checked: Aug 10 at 4:48AM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
The property at 5149 Hixson Pike is a 4,400+ square feet restaurant/retail space located at the corner of Hixson Pike and Austin Road. The sale includes the business currently operating there. The property has been home to a deli for well over 20 years and is a staple in the community. This end unit is part of a larger strip located on Hixson Pike, a busy main road. The intersection is signalized, providing access from both Hixson Pike and Austin Road. Parking is available. The location benefits from high traffic counts, exceeding 30,000 cars per day, offering significant exposure.
Key Highlights
- High‑traffic location on Hixson Pike with over 30,000 cars per day, providing excellent exposure.
- Includes the sale of the established and well‑known Nicks Deli business.
- Features 4,400+ square feet of restaurant/retail space.
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
$41,207
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
6.60%
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%
$824,140
$824.1K
Cap Rate 7%
$588,671
$588.7K
Cap Rate 9%
$457,856
$457.9K
Market Conditions
NOI Build-Up for 4,428 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
$58.4K $13.20/SF
− Vacancy
−$3.5K −$0.79/SF
EGI
$54.9K $12.41/SF
− OpEx
−$13.7K −$3.10/SF
NOI
$41.2K $9.31/SF
Area
Chattanooga, TN
Vacancy
6.00%
Lease Rate
$13.20 /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%
$824,140
Cap Rate 7%
$588,671
Cap Rate 9%
$457,856
Alternative Uses
Best Use
Specialty Retail
$588.7K
$515.1K – $686.8K
NOI $41,207 @ 7.0% cap · market cap 6.60%
Second Best
Retail
$488.9K
$427.8K – $570.3K
NOI $34,220 @ 7.0% cap · market cap 5.48%
Theoretical Best
Office A
$977.9K
$855.7K – $1.14M
NOI $68,456 @ 7.0% cap · market cap 10.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,543
Businesses Nearby
582k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 40%
Shops & Services 23%
Apparel 21%
Home Improvements & Furnishings 10%
T.J. Maxx
Apparel
59,402 visits/mo
0.2 miles
The Home Depot
Home Improvements & Furnishings
40,285 visits/mo
0.3 miles
Texas Roadhouse
Dining
35,483 visits/mo
0.3 miles
Belk
Apparel
34,285 visits/mo
0.1 miles
Gabe's
Shops & Services
28,254 visits/mo
0.3 miles
Demographics for 37343, TN
43,626
Population
19,031
Households
2.3
Avg Household Size
42
Median Age
38%
College-Educated
93%
High-School Grad
42.1 sq mi
ZIP Area
1,036
Density / Sq Mi
$79,177
Median Household Income
$45,151
Median Earnings
$1,258
Median Rent
$275,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant/retail space on Hixson Pike, includes established business.
Where is this conventional restaurant located?
The property is located at 5149 Hixson Pike Chattanooga, TN.
What is the asking price?
The asking price for this property is $624,500.
What are key features of this property?
This property features: High‑traffic location on Hixson Pike with over 30,000 cars per day, providing excellent exposure.; Includes the sale of the established and well‑known Nicks Deli business.; Features 4,400+ square feet of restaurant/retail space.
