Office Unit with NNN
For Sale
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6166 SHALLOWFORD RD, Chattanooga, TN 37421
Office condominium occupied by an established tenant under a recently extended triple-net lease.
Property Size2,718 SF
Price / SF$242.46
Days on Market14
Property Features for 6166 SHALLOWFORD RD
General Information
Standard status
Active
Size
2,718 SF
Class
B
Property subtype
Office
Zoning
C-C
Lease Type
NNN
Investment Type
Net Lease
Building Details
Year Built
1999
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Tower Property Group, LLC
(423) 432-2990
Listed By:
Jon Hughes · License #TN 294692
Source:
Crexi
Added: Aug 10
Changed: Aug 18
Last Checked: Aug 22 at 1:50PM
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 Tower Property Group, LLC
Investment Insights
Based on property information with market context.
Suite 106 is a 2,718 SF office condominium in a 1999-built property. The unit is occupied by an established tenant and is subject to a three-year NNN lease extension running through August 2029, with no landlord management responsibilities during the lease term.
The property is located at 6166 Shallowford Road in Chattanooga, Tennessee, within zoning designation C-C. Showings are available by appointment.
The property is located at 6166 Shallowford Road in Chattanooga, Tennessee, within zoning designation C-C. Showings are available by appointment.
Key Highlights
- 2,718 SF office condominium in Suite 106
- Established tenant in place
- Three‑year NNN lease extension through August 2029
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
$31,189
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
4.73%
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%
$623,780
$623.8K
Cap Rate 7%
$445,557
$445.6K
Cap Rate 9%
$346,544
$346.5K
Market Conditions
NOI Build-Up for 2,718 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
$48.9K $18.00/SF
− Vacancy
−$7.3K −$2.70/SF
EGI
$41.6K $15.30/SF
− OpEx
−$10.4K −$3.82/SF
NOI
$31.2K $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%
$623,780
Cap Rate 7%
$445,557
Cap Rate 9%
$346,544
Alternative Uses
Best Use
Office B
$445.6K
$389.9K – $519.8K
NOI $31,189 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$600.3K
$525.3K – $700.3K
NOI $42,020 @ 7.0% cap · market cap 6.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
845
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
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Frequently Asked Questions
What type of property is this?
Office units - Office condominium occupied by an established tenant under a recently extended triple-net lease.
Where is this office units located?
The property is located at 6166 SHALLOWFORD RD Chattanooga, TN.
What is the asking price?
The asking price for this property is $659,000.
What are key features of this property?
This property features: 2,718 SF office condominium in Suite 106; Established tenant in place; Three‑year NNN lease extension through August 2029
