Shallowford Road Office
For Sale
Contact for pricing
6131 Shallowford Rd, Chattanooga, TN 37421
1,860 SF office condo in central Chattanooga location.
Property Size1,860 SF
Price / SF$190.86
Days on Market168
Property Features for 6131 Shallowford Rd
General Information
Standard status
Active
Size
1,860 SF
Class
B
Property subtype
Office
Zoning
Commercial
Building Details
Year Built
2003
Year Renovated
2025
Stories
1
Units
1
Listing Agency:
KW Commercial
(423) 667-6204
Listed By:
Joe Pleva · License #TN276752
Source:
Crexi
Added: Mar 9
Changed: Aug 14
Last Checked: Aug 22 at 7:27AM
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 KW Commercial
Investment Insights
Based on property information with market context.
This 1,860 square foot office space is located in the Shallowford One office condo complex. The location is central to Chattanooga and surrounding areas. The space was formerly used as a medical lab and is suitable for a professional or medical office. The layout includes two private offices, a spacious waiting room, a receptionist office, a copier alcove, and a kitchenette/breakroom. It also features two large open spaces and two bathrooms. The interior has been newly painted. There are five parking spaces located just outside the front of the space and two parking spaces in the rear of the unit.
Key Highlights
- Centrally located in Chattanooga, providing easy access to surrounding areas.
- Includes seven dedicated parking spaces (five in front, two in rear).
- Suitable for professional or medical office use.
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
$21,344
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
6.01%
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%
$426,880
$426.9K
Cap Rate 7%
$304,914
$304.9K
Cap Rate 9%
$237,156
$237.2K
Market Conditions
NOI Build-Up for 1,860 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
$33.5K $18.00/SF
− Vacancy
−$5.0K −$2.70/SF
EGI
$28.5K $15.30/SF
− OpEx
−$7.1K −$3.82/SF
NOI
$21.3K $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%
$426,880
Cap Rate 7%
$304,914
Cap Rate 9%
$237,156
Alternative Uses
Best Use
Office B
$304.9K
$266.8K – $355.7K
NOI $21,344 @ 7.0% cap · market cap 6.01%
Second Best
Healthcare Medical
$296.0K
$259.0K – $345.3K
NOI $20,717 @ 7.0% cap · market cap 5.84%
Theoretical Best
Office A
$410.8K
$359.4K – $479.3K
NOI $28,755 @ 7.0% cap · market cap 8.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
695
Businesses Nearby
Under-served
Demand for This Use
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
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Similar Off Market Nearby
- Shallowford Animal Hospital — 6200 Shallowford Rd, Chattanooga, TN 37421
Frequently Asked Questions
What type of property is this?
Medical Office Space - 1,860 SF office condo in central Chattanooga location.
Where is this medical office space located?
The property is located at 6131 Shallowford Rd Chattanooga, TN.
What is the asking price?
The asking price for this property is $355,000.
What are key features of this property?
This property features: Centrally located in Chattanooga, providing easy access to surrounding areas.; Includes seven dedicated parking spaces (five in front, two in rear).; Suitable for professional or medical office use.
