Medical District Office/Retail
For Sale
Contact for pricing
Pending
661 Madison Ave, Memphis, TN 38103
Renovated medical/retail space in Memphis Medical District, move-in ready.
Property Size3,616 SF
Days on Market440
Property Features for 661 Madison Ave
General Information
Standard status
Pending
Size
3,616 SF
Class
B
Property subtype
Office
Listing Agency:
Crye-Leike Commercial Memphis
Listed By:
Wilson W. McCloy · License #324376
Source:
Crexi
Added: May 29, 2025
Changed: Aug 8
Last Checked: Aug 10 at 3:24PM
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 Crye-Leike Commercial Memphis
Investment Insights
Based on property information with market context.
This property, suitable for medical office or freestanding retail use, was newly renovated in 2023. The 3,616 square foot space is largely furnished and move-in ready.
Key Highlights
- Newly renovated in 2023
- Move‑in ready condition
- Largely furnished, ready for immediate 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
$52,409
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
8.81%
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%
$1,048,180
$1.0M
Cap Rate 7%
$748,700
$748.7K
Cap Rate 9%
$582,322
$582.3K
Market Conditions
NOI Build-Up for 3,616 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
$95.5K $26.40/SF
− Vacancy
−$8.1K −$2.24/SF
EGI
$87.3K $24.16/SF
− OpEx
−$34.9K −$9.66/SF
NOI
$52.4K $14.49/SF
Area
Memphis, TN
Vacancy
8.50%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$1,048,180
Cap Rate 7%
$748,700
Cap Rate 9%
$582,322
Alternative Uses
Best Use
Office B
$790.4K
$691.6K – $922.1K
NOI $55,325 @ 7.0% cap · market cap 9.30%
Second Best
Healthcare Medical
$748.7K
$655.1K – $873.5K
NOI $52,409 @ 7.0% cap · market cap 8.81%
Theoretical Best
Office A
$1.07M
$935.1K – $1.25M
NOI $74,808 @ 7.0% cap · market cap 12.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,789
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 38103, TN
14,739
Population
8,811
Households
1.7
Avg Household Size
35
Median Age
61%
College-Educated
95%
High-School Grad
2.7 sq mi
ZIP Area
5,459
Density / Sq Mi
$75,763
Median Household Income
$60,918
Median Earnings
$1,575
Median Rent
$380,900
Median Home Value
Market
Vacancy Rate% for Office in Memphis, TN
Questions? Ask Rey
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Similar Off Market Nearby
- The Pet Hospitals Downtown — 660 Jefferson Ave, Memphis, TN 38105
Frequently Asked Questions
What type of property is this?
Medical Office Space - Renovated medical/retail space in Memphis Medical District, move-in ready.
Where is this medical office space located?
The property is located at 661 Madison Ave Memphis, TN.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Newly renovated in 2023; Move‑in ready condition; Largely furnished, ready for immediate use
