Flex Space with Six
For Sale
$1,750,000
516 Morelock Street, Kingsport, TN 37660
COMMERCIAL - Kingsport, TN
Property Size21,600 SF
Lot Size3.38 Acres
Price / SF$81.02
Days on Market1333
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: Aug 4
Last Checked: Aug 13 at 9:06AM
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.
Flex space opportunity featuring SIX separate buildings totaling 21,600 SF of commercial, office, and multi-purpose space on 3.38 acres. The property includes a mix of office, restroom, warehouse, and garage-bay configurations across the buildings.
Building 1 offers a large office, restroom, bay area, and warehouse space (1,200 SF). Building 2 is a 3-bedroom, 1-bath residence (1,200 SF). Building 3 provides a 616 SF office with 2 restrooms, 6 garage bays, and a 4,800 SF warehouse. Buildings 4, 5, and 6 each include office space (1,200 SF), 2 restrooms for Buildings 4 and 5 and 3 restrooms for Building 6, and 2 garage bays per building, with 4,800 SF warehouse space included in each total.
All buildings have current leases. Construction includes metal siding and a metal roof, with heat pump heating and central air cooling. Public water service and septic tank sewer are listed. Remarks indicate no city taxes, while the property sits right outside Kingsport City limits.
Building 1 offers a large office, restroom, bay area, and warehouse space (1,200 SF). Building 2 is a 3-bedroom, 1-bath residence (1,200 SF). Building 3 provides a 616 SF office with 2 restrooms, 6 garage bays, and a 4,800 SF warehouse. Buildings 4, 5, and 6 each include office space (1,200 SF), 2 restrooms for Buildings 4 and 5 and 3 restrooms for Building 6, and 2 garage bays per building, with 4,800 SF warehouse space included in each total.
All buildings have current leases. Construction includes metal siding and a metal roof, with heat pump heating and central air cooling. Public water service and septic tank sewer are listed. Remarks indicate no city taxes, while the property sits right outside Kingsport City limits.
Key Highlights
- Six buildings totaling 21,600 SF on 3.38 acres
- Zoned B3 flex space with heat pump heating and central air cooling
- All buildings have current leases
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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
131
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
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?
Flex space - Zoned B3 flex space with heat pump and central air across six buildings with current leases.
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 buildings totaling 21,600 SF on 3.38 acres; Zoned B3 flex space with heat pump heating and central air cooling; All buildings have current leases
