Grocery Convenience Store with Full
For Sale
Contact for pricing
600 S Pkwy E, Memphis, TN 38106
Grocery and convenience store currently leased; fully fenced site with a lease expiring 12/31/25 and renewing.
Property Size1,979 SF
Lot Size0.39 Acres
Price / SF$189.49
Days on Market16
Property Features for 600 S Pkwy E
General Information
Standard status
Active
Size
1,979 SF
Lot size
0.39 Acres
Property subtype
RETAIL
Additional Details
Asking Price
$375,000
Listing Agency:
NAI Saig Company - Memphis
(901) 526-3100
Listed By:
Daniel McPhail
Source:
Moodyscre
Added: Jul 27
Changed: Jul 30
Last Checked: Aug 10 at 10:52AM
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 NAI Saig Company - Memphis
Investment Insights
Based on property information with market context.
Grocery and convenience store property featuring a fully fenced site. The offering includes a 2,300 SF facility situated on 0.39 acres. The property is currently occupied by Don’s South Memphis Market.
The lease expiration is 12/31/25, and the lease will renew. The property is located approximately 1 mile from Interstate, providing straightforward access to the surrounding Memphis area.
For prospective tenants or investors, the current lease structure and enclosed, secured site configuration may support a variety of neighborhood retail and convenience use cases consistent with a grocery and convenience format.
The lease expiration is 12/31/25, and the lease will renew. The property is located approximately 1 mile from Interstate, providing straightforward access to the surrounding Memphis area.
For prospective tenants or investors, the current lease structure and enclosed, secured site configuration may support a variety of neighborhood retail and convenience use cases consistent with a grocery and convenience format.
Key Highlights
- 2,300 SF grocery and convenience store
- 0.39‑acre site
- Fully fenced property
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
$23,813
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
6.35%
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%
$476,260
$476.3K
Cap Rate 7%
$340,186
$340.2K
Cap Rate 9%
$264,589
$264.6K
Market Conditions
NOI Build-Up for 1,979 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
$33.2K $16.80/SF
− Vacancy
−$1.5K −$0.76/SF
EGI
$31.8K $16.04/SF
− OpEx
−$7.9K −$4.01/SF
NOI
$23.8K $12.03/SF
Area
Memphis, TN
Vacancy
4.50%
Lease Rate
$16.80 /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%
$476,260
Cap Rate 7%
$340,186
Cap Rate 9%
$264,589
Alternative Uses
Best Use
Specialty Retail
$340.2K
$297.7K – $396.9K
NOI $23,813 @ 7.0% cap · market cap 6.35%
Second Best
Retail
$282.0K
$246.8K – $329.0K
NOI $19,741 @ 7.0% cap · market cap 5.26%
Theoretical Best
Office A
$584.9K
$511.8K – $682.4K
NOI $40,942 @ 7.0% cap · market cap 10.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
274
Businesses Nearby
14k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
BP
Shops & Services
6,700 visits/mo
0.5 miles
Valero Energy
Shops & Services
5,280 visits/mo
0.2 miles
Citgo
Shops & Services
2,195 visits/mo
0.2 miles
Demographics for 38106, TN
22,394
Population
11,630
Households
1.9
Avg Household Size
41
Median Age
12%
College-Educated
83%
High-School Grad
10.4 sq mi
ZIP Area
2,153
Density / Sq Mi
$29,818
Median Household Income
$30,101
Median Earnings
$915
Median Rent
$66,400
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?
Grocery and convenience store - Grocery and convenience store currently leased; fully fenced site with a lease expiring 12/31/25 and renewing.
Where is this grocery and convenience store located?
The property is located at 600 S Pkwy E Memphis, TN.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: 2,300 SF grocery and convenience store; 0.39‑acre site; Fully fenced property
