Flex Space with Warehouse
For Sale
$425,000
520 Pegram Dr., Tupelo, MS 38801
Versatile commercial layout combines reception, private offices, restrooms, and on-site parking for business operations.
Property Size4,000 SF
Price / SF$106.25
Days on Market57
Property Features for 520 Pegram Dr.
General Information
Standard status
Active
Size
4,000 SF
Property subtype
General Commercial
Amenities
131 x 200
Building Details
Year Built
1965
Listing Agency:
JASON WARREN AND ASSOCIATES, INC
(662) 680-9355
Listed By:
Sandy Turner
(662) 680-9355
Source:
Xome
Added: Jun 27
Changed: Aug 18
Last Checked: Aug 22 at 4:56AM
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 JASON WARREN AND ASSOCIATES, INC
Investment Insights
Based on property information with market context.
This 4,000-square-foot flex property, built in 1965, pairs an office-oriented front section with substantial warehouse space. The interior includes a waiting room, reception area, three private offices, and two bathrooms, creating a practical configuration for medical, professional, office, service-based, storage, or light industrial operations.
Located at 520 Pegram Drive in Tupelo, the property provides on-site parking for customers and employees. Its combination of office accommodations and warehouse capacity supports businesses that require both client-facing areas and operational or storage space within one facility.
Located at 520 Pegram Drive in Tupelo, the property provides on-site parking for customers and employees. Its combination of office accommodations and warehouse capacity supports businesses that require both client-facing areas and operational or storage space within one facility.
Key Highlights
- 4,000 square feet of combined office and warehouse space
- Three private offices, reception area, waiting room, and two bathrooms
- Warehouse area supports storage, operations, or light industrial use
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
$37,375
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
8.79%
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%
$747,500
$747.5K
Cap Rate 7%
$533,929
$533.9K
Cap Rate 9%
$415,278
$415.3K
Market Conditions
NOI Build-Up for 4,000 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
$69.6K $17.40/SF
− Vacancy
−$7.3K −$1.83/SF
EGI
$62.3K $15.57/SF
− OpEx
−$24.9K −$6.23/SF
NOI
$37.4K $9.34/SF
Area
Lee County, MS
Vacancy
10.50%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
40.00%
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%
$747,500
Cap Rate 7%
$533,929
Cap Rate 9%
$415,278
Alternative Uses
Best Use
Healthcare Medical
$533.9K
$467.2K – $622.9K
NOI $37,375 @ 7.0% cap · market cap 8.79%
Second Best
Office B
$501.4K
$438.8K – $585.0K
NOI $35,100 @ 7.0% cap · market cap 8.26%
Theoretical Best
Office A
$751.2K
$657.3K – $876.4K
NOI $52,585 @ 7.0% cap · market cap 12.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,263
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 38801, MS
29,795
Population
13,717
Households
2.2
Avg Household Size
38
Median Age
29%
College-Educated
86%
High-School Grad
73.0 sq mi
ZIP Area
408
Density / Sq Mi
$63,447
Median Household Income
$35,596
Median Earnings
$954
Median Rent
$187,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Versatile commercial layout combines reception, private offices, restrooms, and on-site parking for business operations.
Where is this flex space located?
The property is located at 520 Pegram Dr. Tupelo, MS.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 4,000 square feet of combined office and warehouse space; Three private offices, reception area, waiting room, and two bathrooms; Warehouse area supports storage, operations, or light industrial use
