Chattanooga Investment Property For
For Sale
$3,250,000
5811 Lee Hwy, Chattanooga, TN 37421
High-performing investment property with income and growth potential in Chattanooga.
Property Size19,360 SF
Price / SF$171.05
Days on Market263
Property Features for 5811 Lee Hwy
General Information
Standard status
Active
Size
19,360 SF
Class
B
Property subtype
Office / Retail
Building Details
Building Size
19,360 SF
Year Built
1961
Listing Agency:
(770) 335-2672
Listed By:
Cage Gary, CCIM · License #TN #370241
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:52AM
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 Cage Gary, CCIM
Investment Insights
Based on property information with market context.
Located on Lee Highway, a major commercial corridor in Chattanooga, this 19,000 square foot investment property offers immediate income with opportunities for further value capitalization and improvements. The property is zoned C2 for versatile commercial use and contains 17 units. It is situated in an established neighborhood known for its commercial activity and ample parking. The location provides convenient transportation options with easy access to major roadways, including Interstates 75 and 24. The property is suitable for office or office building investors, featuring spacious and well-maintained interior spaces and ample parking for tenants and visitors.
Key Highlights
- High‑performing investment property with immediate income and potential for growth.
- Prime location on Lee Highway, a major commercial corridor in Chattanooga.
- 19,000 SF building with 17 units, ideal for office or office building investors.**
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
$218,025
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
6.71%
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%
$4,360,500
$4.4M
Cap Rate 7%
$3,114,643
$3.1M
Cap Rate 9%
$2,422,500
$2.4M
Market Conditions
NOI Build-Up for 19,000 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
$342.0K $18.00/SF
− Vacancy
−$51.3K −$2.70/SF
EGI
$290.7K $15.30/SF
− OpEx
−$72.7K −$3.82/SF
NOI
$218.0K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$4,360,500
Cap Rate 7%
$3,114,643
Cap Rate 9%
$2,422,500
Alternative Uses
Best Use
Office B
$3.11M
$2.73M – $3.63M
NOI $218,025 @ 7.0% cap · market cap 6.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.20M
$3.67M – $4.90M
NOI $293,737 @ 7.0% cap · market cap 9.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
200
Businesses Nearby
Explore this area
Business Placement
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 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?
Office building - High-performing investment property with income and growth potential in Chattanooga.
Where is this office building located?
The property is located at 5811 Lee Hwy Chattanooga, TN.
What is the asking price?
The asking price for this property is $3,250,000.
What are key features of this property?
This property features: High‑performing investment property with immediate income and potential for growth.; Prime location on Lee Highway, a major commercial corridor in Chattanooga.; 19,000 SF building with 17 units, ideal for office or office building investors.**
