Multi-Building Flex
For Sale
$1,750,000
516 Morelock Street, Kingsport, TN 37660
Commercial Sale, Kingsport, TN
Property Size21,600 SF
Lot Size3.38 Acres
Price / SF$81.02
Days on Market1382
Property Features for 516 Morelock Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B3
Directions
John B Dennis to Morelock St Property on left
Subdivision
403 - Bloomingdale, Crown Col, Windrid
Standard status
Active
APN
031j A 002.30
Size
21,600 SF
Lot size
3.38 Acres
Taxes and HOA fees
Tax Annual Amount
6866
Utilities
Sewer type
Septic Tank
Heating system
Heat Pump (Heating)
Cooling system
Central Air, Heat Pump
Water source
Public
Building Details
Year built
2004
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
Conservus Homes
(423) 343-4307
Listed By:
Lori Fletcher · License #355734
(423) 276-8232
Added: Dec 19, 2022
Changed: Sep 8
Last Checked: Oct 1 at 6:06PM
MLS# 9946653
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex property comprises six buildings totaling 21,600 square feet on 3.38 acres. The improvements include office areas, warehouse space, garage bays, restrooms, and a separate 3-bedroom, 1-bath residence. Building 1 contains 1,200 square feet with an office, restroom, bay area, and warehouse. Buildings 3 through 6 each include 4,800 square feet of combined office, warehouse, and garage space, with varying restroom and bay configurations.
All buildings have current leases. The property is located at 516 Morelock Street in Kingsport, outside the Kingsport city limits, and is zoned B3. Improvements were constructed in 2004 and feature metal siding, metal roofing, public water, septic service, central air, and heat-pump heating and cooling.
All buildings have current leases. The property is located at 516 Morelock Street in Kingsport, outside the Kingsport city limits, and is zoned B3. Improvements were constructed in 2004 and feature metal siding, metal roofing, public water, septic service, central air, and heat-pump heating and cooling.
Key Highlights
- Six‑building flex property totaling 21,600 square feet on 3.38 acres
- All buildings have current leases
- Buildings 3 through 6 each contain 4,800 square feet with office, warehouse, and garage areas
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
$156,686
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
8.95%
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%
$3,133,720
$3.1M
Cap Rate 7%
$2,238,371
$2.2M
Cap Rate 9%
$1,740,956
$1.7M
Market Conditions
NOI Build-Up for 21,600 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
$259.2K $12.00/SF
− Vacancy
−$18.1K −$0.84/SF
EGI
$241.1K $11.16/SF
− OpEx
−$84.4K −$3.91/SF
NOI
$156.7K $7.25/SF
Area
Sullivan County, TN
Vacancy
7.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
35.00%
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%
$3,133,720
Cap Rate 7%
$2,238,371
Cap Rate 9%
$1,740,956
Alternative Uses
Best Use
Office B
$4.51M
$3.94M – $5.26M
NOI $315,395 @ 7.0% cap · market cap 18.02%
Second Best
Warehouse
$2.48M
$2.17M – $2.90M
NOI $173,722 @ 7.0% cap · market cap 9.93%
Theoretical Best
Office A
$8.09M
$7.08M – $9.44M
NOI $566,217 @ 7.0% cap · market cap 32.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
135
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37660, TN
39,479
Population
20,405
Households
1.9
Avg Household Size
45
Median Age
24%
College-Educated
88%
High-School Grad
65.7 sq mi
ZIP Area
601
Density / Sq Mi
$46,913
Median Household Income
$34,164
Median Earnings
$833
Median Rent
$177,800
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Flex space - Leased commercial property combines office, warehouse, garage, and residential components across multiple buildings.
Where is this flex space located?
The property is located at 516 Morelock Street Kingsport, TN.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Six‑building flex property totaling 21,600 square feet on 3.38 acres; All buildings have current leases; Buildings 3 through 6 each contain 4,800 square feet with office, warehouse, and garage areas
