Auto Shop with Paint
New
For Sale
$400,000
602 W PEEBLES Rd, Memphis, TN 38109
Commercial/Industrial, Memphis, TN
Property Size3,130 SF
Lot Size0.66 Acres
Price / SF$127.80
Days on Market4
Property Features for 602 W PEEBLES Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
HEISKELL
Standard status
Active
Lot size
0.66 Acres
Taxes and HOA fees
Tax Annual Amount
872
Building Details
Year built
1994
Listing Agency:
eXp Realty, LLC
(888) 519-5113
Listed By:
Jason Miller · License #328506
(901) 212-4141
Added: Oct 1
Last Checked: Oct 4 at 10:06PM
MLS# 10231468
Copyright © 2026 Memphis Area Association of Realtors®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
An auto shop property comprising three lots includes a 3,130-square-foot building with a paint shop. The combined site totals 0.66 acres, and the building was constructed in 1994.
Located at 602, 606, and 610 W Peebles Road in Memphis, the property has 150 feet of road frontage and is zoned Commercial Mixed Use.
Located at 602, 606, and 610 W Peebles Road in Memphis, the property has 150 feet of road frontage and is zoned Commercial Mixed Use.
Key Highlights
- Three‑lot property totaling 0.66 acres
- 3,130‑square‑foot building includes a paint shop
- 150 feet of road frontage
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
$30,236
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
7.56%
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%
$604,720
$604.7K
Cap Rate 7%
$431,943
$431.9K
Cap Rate 9%
$335,956
$336.0K
Market Conditions
NOI Build-Up for 3,130 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
$47.0K $15.00/SF
− Vacancy
−$3.8K −$1.20/SF
EGI
$43.2K $13.80/SF
− OpEx
−$13.0K −$4.14/SF
NOI
$30.2K $9.66/SF
Area
ZIP 38109
Vacancy
8.00%
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%
$604,720
Cap Rate 7%
$431,943
Cap Rate 9%
$335,956
Alternative Uses
Best Use
Retail
$431.9K
$378.0K – $503.9K
NOI $30,236 @ 7.0% cap · market cap 7.56%
Second Best
Industrial
$256.3K
$224.3K – $299.1K
NOI $17,944 @ 7.0% cap · market cap 4.49%
Theoretical Best
Office A
$767.9K
$671.9K – $895.8K
NOI $53,750 @ 7.0% cap · market cap 13.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
82
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 38109, TN
42,437
Population
18,881
Households
2.2
Avg Household Size
40
Median Age
14%
College-Educated
87%
High-School Grad
59.7 sq mi
ZIP Area
711
Density / Sq Mi
$36,934
Median Household Income
$30,780
Median Earnings
$1,000
Median Rent
$76,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Memphis, TN
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Similar Off Market Nearby
- Simmons Body Shop & Garage — 563 W Peebles Rd, Memphis, TN 38109
- Auto Rite — 540 W Peebles Rd, Memphis, TN 38109
- Hardaway's Body Shop — 602 W Peebles Rd, Memphis, TN 38109
Frequently Asked Questions
What type of property is this?
Auto shop - The property combines an automotive service building with two additional lots under commercial mixed-use zoning.
Where is this auto shop located?
The property is located at 602 W PEEBLES Rd Memphis, TN.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Three‑lot property totaling 0.66 acres; 3,130‑square‑foot building includes a paint shop; 150 feet of road frontage
