Industrial Building on Middlebrook
For Sale
$1,245,000
5300 S Middlebrook Pike, Knoxville, TN 37921
6,925 SF industrial building with I-G zoning for sale.
Property Size6,925 SF
Days on Market283
Property Features for 5300 S Middlebrook Pike
General Information
Standard status
Active
Size
6,925 SF
Property subtype
Industrial
Building Details
Building Size
6,925 SF
Year Built
1982
Listing Agency:
NAI Koella RM Moore - Knoxville
(865) 806-6517
Listed By:
Sam Tate, CCIM · License #TN #207699
(865) 806-6517
Source:
Koellamoore
Added: Nov 22, 2025
Changed: Aug 26
Last Checked: Aug 31 at 3:21PM
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 NAI Koella RM Moore - Knoxville
Investment Insights
Based on property information with market context.
This 6,925 SF building, originally constructed in 1982 for a construction equipment leasing business, is currently occupied by Borden Dairy under a month-to-month lease. Situated on a 0.9-acre site with 368' of road frontage on S Middlebrook Pk, the property offers prominent visibility and easy crossover to westbound traffic. The I-G zoning permits a broad spectrum of uses including industrial, retail, office, restaurant, equipment rental, and service. The property is located in the Middlebrook industrial corridor on the south side of S Middlebrook Pike, across from Henson Road. It is easily accessible from I-40, I-75, and I-640 from either direction, making it a strategically located property for various business operations.
Key Highlights
- I‑G zoning permits multiple uses including industrial, retail, office, restaurant, and equipment rental/service.
- Prominent visibility with 368' road frontage on S Middlebrook Pk.**
- Easy access to I‑40, I‑75, and I‑640.
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
$60,075
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
4.83%
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%
$1,201,500
$1.2M
Cap Rate 7%
$858,214
$858.2K
Cap Rate 9%
$667,500
$667.5K
Market Conditions
NOI Build-Up for 6,925 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
$74.8K $10.80/SF
− Vacancy
−$4.1K −$0.59/SF
EGI
$70.7K $10.21/SF
− OpEx
−$10.6K −$1.53/SF
NOI
$60.1K $8.68/SF
Area
Knoxville, TN
Vacancy
5.50%
Lease Rate
$10.80 /SF/Yr
Expense Ratio
15.00%
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%
$1,201,500
Cap Rate 7%
$858,214
Cap Rate 9%
$667,500
Alternative Uses
Best Use
Warehouse
$858.2K
$750.9K – $1.00M
NOI $60,075 @ 7.0% cap · market cap 4.83%
Second Best
Industrial
$664.0K
$581.0K – $774.6K
NOI $46,478 @ 7.0% cap · market cap 3.73%
Theoretical Best
Office A
$1.72M
$1.50M – $2.00M
NOI $120,063 @ 7.0% cap · market cap 9.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
412
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37921, TN
28,903
Population
12,969
Households
2.2
Avg Household Size
35
Median Age
27%
College-Educated
87%
High-School Grad
15.9 sq mi
ZIP Area
1,818
Density / Sq Mi
$57,813
Median Household Income
$37,518
Median Earnings
$1,147
Median Rent
$204,300
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Gouffon Moving & Storage — 1520 Amherst Rd, Knoxville, TN 37909
- Iron Mountain — 1706 Louisville Dr, Knoxville, TN 37921
- Carey Moving & Storage of Knoxville — 4013 Henson Rd, Knoxville, TN 37921
- Allied Van Lines — 4013 Henson Rd #20, Knoxville, TN 37921
Frequently Asked Questions
What type of property is this?
Warehouse - 6,925 SF industrial building with I-G zoning for sale.
Where is this warehouse located?
The property is located at 5300 S Middlebrook Pike Knoxville, TN.
What is the asking price?
The asking price for this property is $1,245,000.
What are key features of this property?
This property features: I‑G zoning permits multiple uses including industrial, retail, office, restaurant, and equipment rental/service.; Prominent visibility with 368' road frontage on S Middlebrook Pk.**; Easy access to I‑40, I‑75, and I‑640.
