Office Building with Deeded
New
For Sale
$4,950,000
620 Lindsay St, Chattanooga, TN 37403
Office property in the U-CX-6 zone with recently renovated offices.
Property Size19,824 SF
Price / SF$247.50
Days on Market6
Property Features for 620 Lindsay St
General Information
Standard status
Active
Size
19,824 SF
Class
B
Property subtype
Office - General Office
Zoning
U-CX-6
Building Details
Building Size
19,824 SF
Year Built
1973
Year Renovated
2024
Buildings
1
Listing Agency:
Rise Partners
Listed By:
Wilson McGinness · License #281173
Source:
Commercialcafe
Added: Aug 25
Changed: Aug 29
Last Checked: Aug 29 at 9:12PM
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 Rise Partners
Investment Insights
Based on property information with market context.
Located at 620 Lindsay St, this 20,000 SF office building includes multiple offices, with several recently renovated. Originally constructed in 1973, the property provides a substantial office configuration in Chattanooga’s downtown area and includes deeded parking, a practical feature for an urban commercial setting.
The building is across from the selected site for the new Federal Courthouse and near the University of Tennessee Chattanooga, Soldiers and Sailors Memorial Auditorium, and Walker Theatre. Its U-CX-6 zoning and proximity to established civic and cultural destinations support its position within the downtown office environment.
The building is across from the selected site for the new Federal Courthouse and near the University of Tennessee Chattanooga, Soldiers and Sailors Memorial Auditorium, and Walker Theatre. Its U-CX-6 zoning and proximity to established civic and cultural destinations support its position within the downtown office environment.
Key Highlights
- 20,000 SF office building
- Deeded parking included
- Several offices recently renovated
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
$229,500
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
4.64%
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%
$4,590,000
$4.6M
Cap Rate 7%
$3,278,571
$3.3M
Cap Rate 9%
$2,550,000
$2.6M
Market Conditions
NOI Build-Up for 20,000 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
$360.0K $18.00/SF
− Vacancy
−$54.0K −$2.70/SF
EGI
$306.0K $15.30/SF
− OpEx
−$76.5K −$3.82/SF
NOI
$229.5K $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%
$4,590,000
Cap Rate 7%
$3,278,571
Cap Rate 9%
$2,550,000
Alternative Uses
Best Use
Office B
$3.28M
$2.87M – $3.83M
NOI $229,500 @ 7.0% cap · market cap 4.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.42M
$3.86M – $5.15M
NOI $309,197 @ 7.0% cap · market cap 6.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,787
Businesses Nearby
Explore this area
Business Placement
Demographics for 37403, TN
5,666
Population
2,394
Households
2.4
Avg Household Size
26
Median Age
49%
College-Educated
95%
High-School Grad
1.7 sq mi
ZIP Area
3,333
Density / Sq Mi
$65,750
Median Household Income
$12,410
Median Earnings
$1,253
Median Rent
$444,000
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 building - Office property in the U-CX-6 zone with recently renovated offices.
Where is this office building located?
The property is located at 620 Lindsay St Chattanooga, TN.
What is the asking price?
The asking price for this property is $4,950,000.
What are key features of this property?
This property features: 20,000 SF office building; Deeded parking included; Several offices recently renovated
