Two-Suite Office
For Sale
$395,000
68 Executive Drive, Jackson, TN 38305
COMMERCIAL - Jackson, TN
Property Size2,400 SF
Price / SF$164.58
Days on Market57
Property Features for 68 Executive Drive
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Retail Trade, Office, Warehouse
Parking
16
Elementary school district
Jackson Madison Consolidated District
Standard status
Active
APN
056H A 044.00
Size
2,400 SF
Taxes and HOA fees
Tax Annual Amount
3544
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas
Cooling system
Central Air
Water source
Public
Building Details
Year built
1997
Floors in Building
1
Flooring type
Carpet, Tile - Ceramic
Building materials
Block
Roof type
Shingle
Listing Agency:
Ragan Realty Group
(731) 410-7700
Listed By:
Brandi Ragan · License #333847
(731) 267-1932
Added: Jul 6
Changed: Aug 4
Last Checked: Aug 31 at 11:06AM
MLS# 2603192
Copyright © 2026 Central West Tennessee 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.
This 2,400-square-foot commercial building, constructed in 1997, is arranged as two approximately 1,200-square-foot sides with separate utility meters. The interior includes multiple office configurations, carpet and ceramic tile flooring, central air, and natural gas heating. The building was most recently operated as a daycare.
Block construction, a shingle roof, public water, and public sewer serve the property. The two-sided layout provides a defined physical configuration for separate occupancy or a single user, subject to applicable requirements.
Block construction, a shingle roof, public water, and public sewer serve the property. The two-sided layout provides a defined physical configuration for separate occupancy or a single user, subject to applicable requirements.
Key Highlights
- 2,400 square feet of commercial building area
- Two approximately 1,200‑square‑foot sides
- Separate utility meters for each side
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
$25,611
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
6.48%
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%
$512,220
$512.2K
Cap Rate 7%
$365,871
$365.9K
Cap Rate 9%
$284,567
$284.6K
Market Conditions
NOI Build-Up for 2,400 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
$40.9K $17.04/SF
− Vacancy
−$6.7K −$2.81/SF
EGI
$34.1K $14.23/SF
− OpEx
−$8.5K −$3.56/SF
NOI
$25.6K $10.67/SF
Area
Madison County, TN
Vacancy
16.50%
Lease Rate
$17.04 /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%
$512,220
Cap Rate 7%
$365,871
Cap Rate 9%
$284,567
Alternative Uses
Best Use
Office B
$365.9K
$320.1K – $426.9K
NOI $25,611 @ 7.0% cap · market cap 6.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$494.2K
$432.4K – $576.6K
NOI $34,595 @ 7.0% cap · market cap 8.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
465
Businesses Nearby
Explore this area
Business Placement
Demographics for 38305, TN
52,686
Population
22,950
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
94%
High-School Grad
128.0 sq mi
ZIP Area
412
Density / Sq Mi
$66,292
Median Household Income
$37,416
Median Earnings
$1,201
Median Rent
$221,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Two separately metered sides support flexible occupancy arrangements.
Where is this office building located?
The property is located at 68 Executive Drive Jackson, TN.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: 2,400 square feet of commercial building area; Two approximately 1,200‑square‑foot sides; Separate utility meters for each side
