Flex Space with Warehouse
For Sale
$425,000
520 Pegram Dr, Tupelo, MS 38801
COMMERCIAL - Tupelo, MS
Property Size4,000 SF
Lot Size0.60 Acres
Price / SF$106.25
Days on Market56
Property Features for 520 Pegram Dr
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From W Main St turn onto S Green St. Turn right onto Pegram Dr. Building will be on the corner of Pegram and S Madison.
Subdivision
Southeast Tupelo
Standard status
Active
Size
4,000 SF
Lot size
0.60 Acres
Taxes and HOA fees
Tax Description
Instrument #: 2018001471
Tax Annual Amount
4450
Legal Description
Instrument #: 2018001471
Building Details
Year built
1965
Floors in Building
1
Listing Agency:
JASON WARREN AND ASSOCIATES, INC
(662) 842-2710
Listed By:
Premier Home Team · License #B-21057
(662) 842-2710
Added: Jul 1
Changed: Aug 4
Last Checked: Aug 25 at 12:06PM
MLS# 26-2385
Copyright © 2026 Northeast Mississippi Board of Realtors. 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 space property includes a reception area and waiting room, three dedicated private offices, and two bathrooms. In addition to the front-of-house space, the layout provides an expansive warehouse area suited for storage, operational space, or light industrial use. Ample on-site parking supports convenient client and employee access.
Built in 1965 on a 0.6015-acre site, the property is located at 520 Pegram Dr in Tupelo’s medical district. At approximately 4,000 square feet, the configuration can support medical, professional, office, or service-based businesses needing both office rooms and flexible warehouse space.
All information is subject to verification.
Built in 1965 on a 0.6015-acre site, the property is located at 520 Pegram Dr in Tupelo’s medical district. At approximately 4,000 square feet, the configuration can support medical, professional, office, or service-based businesses needing both office rooms and flexible warehouse space.
All information is subject to verification.
Key Highlights
- Approximately 4,000 SF flex space with an expansive warehouse area
- 0.6015‑acre site built in 1965
- Reception and waiting room plus three dedicated private offices
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 - Flex space offering a reception and waiting area, three private offices, two bathrooms, and an expansive warehouse component.
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: Approximately 4,000 SF flex space with an expansive warehouse area; 0.6015‑acre site built in 1965; Reception and waiting room plus three dedicated private offices
