Vacant Storefront
For Sale
Contact for pricing
5968 Knight Arnold Rd Ext, Memphis, TN 38115
Vacant commercial space offering an owner-user configuration for business operations.
Property Size8,084 SF
Price / SF$150
Days on Market132
Property Features for 5968 Knight Arnold Rd Ext
General Information
Standard status
Active
Size
8,084 SF
Property subtype
Retail
Occupancy
100%
Investment Type
Owner/User
Building Details
Year Built
1985
Tenancy
Single
Listing Agency:
Sands Investment Group Philadelphia
Listed By:
Tom Gorman · License #PA RM424383
Source:
Crexi
Added: Apr 21
Changed: Aug 30
Last Checked: Aug 30 at 5:52AM
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 Sands Investment Group Philadelphia
Investment Insights
Based on property information with market context.
This vacant storefront property provides 8,084 square feet of commercial space for an owner-user seeking a dedicated operating location. The building was constructed in 1985 and is positioned for reuse by a business requiring a retail-oriented facility.
The property is located at 5968 Knight Arnold Road Extension in Memphis, Tennessee, within the 38115 ZIP code. Its existing commercial format offers a physical base for a business that intends to occupy and operate from the property.
The property is located at 5968 Knight Arnold Road Extension in Memphis, Tennessee, within the 38115 ZIP code. Its existing commercial format offers a physical base for a business that intends to occupy and operate from the property.
Key Highlights
- 8,084 SF of vacant commercial space
- Storefront property suited to an owner‑user strategy
- Building constructed in 1985
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
$80,638
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
6.65%
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%
$1,612,760
$1.6M
Cap Rate 7%
$1,151,971
$1.2M
Cap Rate 9%
$895,978
$896.0K
Market Conditions
NOI Build-Up for 8,084 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
$121.3K $15.00/SF
− Vacancy
−$6.1K −$0.75/SF
EGI
$115.2K $14.25/SF
− OpEx
−$34.6K −$4.27/SF
NOI
$80.6K $9.98/SF
Area
Memphis, TN
Vacancy
5.00%
Lease Rate
$15.00 /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%
$1,612,760
Cap Rate 7%
$1,151,971
Cap Rate 9%
$895,978
Alternative Uses
Best Use
Retail
$1.15M
$1.01M – $1.34M
NOI $80,638 @ 7.0% cap · market cap 6.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.39M
$2.09M – $2.79M
NOI $167,242 @ 7.0% cap · market cap 13.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
389
Businesses Nearby
19k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Marathon
Shops & Services
6,049 visits/mo
0.0 miles
Family Dollar
Shops & Services
5,748 visits/mo
0.1 miles
Citgo
Shops & Services
3,588 visits/mo
0.0 miles
Marathon
Shops & Services
1,834 visits/mo
0.5 miles
BP
Shops & Services
1,811 visits/mo
0.0 miles
Demographics for 38115, TN
40,076
Population
19,179
Households
2.1
Avg Household Size
30
Median Age
14%
College-Educated
87%
High-School Grad
8.6 sq mi
ZIP Area
4,660
Density / Sq Mi
$42,931
Median Household Income
$32,997
Median Earnings
$1,129
Median Rent
$129,700
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Vacant commercial space offering an owner-user configuration for business operations.
Where is this storefront property located?
The property is located at 5968 Knight Arnold Rd Ext Memphis, TN.
What is the asking price?
The asking price for this property is $1,212,600.
What are key features of this property?
This property features: 8,084 SF of vacant commercial space; Storefront property suited to an owner‑user strategy; Building constructed in 1985
