Fully Leased Retail Shopping
For Sale
$1,350,000
5805 Lee Hwy, Chattanooga, TN 37421
Occupied retail plaza on a high-traffic commercial corridor near an automotive dealership and regional airport.
Property Size9,800 SF
Price / SF$137.76
Days on Market137
Property Features for 5805 Lee Hwy
General Information
Standard status
Active
Size
9,800 SF
Occupancy
100%
Additional Details
Traffic Count
70,000 vehicles/day
Taxes and HOA fees
Annual Taxes
$15,754
Building Details
Tenancy
Multi
Listing Agency:
Keller Williams Heritage
(706) 537-6174
Listed By:
Roger Haikal
(706) 537-6174
Source:
Exprealty
Added: Apr 16
Changed: Aug 29
Last Checked: Aug 29 at 1:44PM
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 Keller Williams Heritage
Investment Insights
Based on property information with market context.
This fully occupied retail plaza contains 9,800 square feet of retail space and is positioned along Lee Hwy in Chattanooga, Tennessee. The property is leased in full, providing an established occupancy profile for a retail-focused owner.
Lee Hwy carries approximately 70,000 vehicles per day, placing the center along a heavily traveled commercial corridor. The property sits directly across from a Toyota dealership and is minutes from Chattanooga Metropolitan Airport, offering a location within an active commercial area.
Lee Hwy carries approximately 70,000 vehicles per day, placing the center along a heavily traveled commercial corridor. The property sits directly across from a Toyota dealership and is minutes from Chattanooga Metropolitan Airport, offering a location within an active commercial area.
Key Highlights
- 9,800‑square‑foot fully occupied retail plaza
- Approximately 70,000 vehicles per day along Lee Hwy
- Directly across from a Toyota dealership
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
$75,734
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
5.61%
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%
$1,514,680
$1.5M
Cap Rate 7%
$1,081,914
$1.1M
Cap Rate 9%
$841,489
$841.5K
Market Conditions
NOI Build-Up for 9,800 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
$117.6K $12.00/SF
− Vacancy
−$9.4K −$0.96/SF
EGI
$108.2K $11.04/SF
− OpEx
−$32.5K −$3.31/SF
NOI
$75.7K $7.73/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,514,680
Cap Rate 7%
$1,081,914
Cap Rate 9%
$841,489
Alternative Uses
Best Use
Retail
$1.08M
$946.7K – $1.26M
NOI $75,734 @ 7.0% cap · market cap 5.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.16M
$1.89M – $2.53M
NOI $151,506 @ 7.0% cap · market cap 11.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
70,000 VPD
Traffic count
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
614
Businesses Nearby
42k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 42%
Shops & Services 40%
Home Improvements & Furnishings 16%
Hotels & Casinos 3%
Aldi
Groceries
17,660 visits/mo
0.3 miles
Capital Toyota
Shops & Services
5,558 visits/mo
0.2 miles
Elder's Ace Hardware-Brainerd
Home Improvements & Furnishings
5,410 visits/mo
0.3 miles
Citgo
Shops & Services
4,206 visits/mo
0.2 miles
Ez Pawn
Shops & Services
3,270 visits/mo
0.3 miles
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Brainerd Village Shopping Center — 5798 Brainerd Rd, Chattanooga, TN 37411
- BRAINERD HILLS CENTER — E Brainerd Rd, Chattanooga, TN 37421
Frequently Asked Questions
What type of property is this?
Shopping center - Occupied retail plaza on a high-traffic commercial corridor near an automotive dealership and regional airport.
Where is this shopping center located?
The property is located at 5805 Lee Hwy Chattanooga, TN.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 9,800‑square‑foot fully occupied retail plaza; Approximately 70,000 vehicles per day along Lee Hwy; Directly across from a Toyota dealership
