Daycare-Converted Office
For Sale
Contact for pricing
68 Executive Drive, Jackson, TN 38305
A 2,400± sf commercial building with two separate utility meters and flexible office configurations on each side.
Property Size2,400 SF
Price / SF$164.58
Days on Market47
Property Features for 68 Executive Drive
General Information
Standard status
Active
Size
2,400 SF
Class
B
Total Parking Spaces
16
Property subtype
Office, Retail, Industrial
Building Details
Year Built
1997
Listing Agency:
Ragan Realty Group
(731) 267-1932
Listed By:
Brandi Ragan · License #333847
Source:
Crexi
Added: Jul 6
Changed: Aug 19
Last Checked: Aug 20 at 5:48PM
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 Ragan Realty Group
Investment Insights
Based on property information with market context.
68 Executive Drive is a 2,400± square foot commercial building most recently operated as a daycare. The property was designed for versatility, with two separate utility meters that support split use and flexible operations.
The layout provides approximately 1,200 square feet per side, with multiple office configurations on each half. This arrangement can suit owner-occupancy with space for additional tenants, or an investment strategy where separate areas are leased out.
The building’s practical split utility setup and office-ready configurations make it a straightforward option for converting back to professional office use.
The layout provides approximately 1,200 square feet per side, with multiple office configurations on each half. This arrangement can suit owner-occupancy with space for additional tenants, or an investment strategy where separate areas are leased out.
The building’s practical split utility setup and office-ready configurations make it a straightforward option for converting back to professional office use.
Key Highlights
- 2,400± SF commercial building built in 1997 with flexible space for business use
- Formerly operated as a daycare; can be converted back to professional office space
- Two separate utility meters support separate tenant use or owner‑occupancy with additional income
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
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
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Frequently Asked Questions
What type of property is this?
Office units - A 2,400± sf commercial building with two separate utility meters and flexible office configurations on each side.
Where is this office units 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± SF commercial building built in 1997 with flexible space for business use; Formerly operated as a daycare; can be converted back to professional office space; Two separate utility meters support separate tenant use or owner‑occupancy with additional income
