Office Unit with Private
For Sale
Contact for pricing
6872 MCCUTCHEON RD, Chattanooga, TN 37421
Commercially zoned workspace includes a reception area, meeting room, kitchenette, and two restrooms.
Property Size1,500 SF
Price / SF$220
Days on Market122
Property Features for 6872 MCCUTCHEON RD
General Information
Standard status
Active
Size
1,500 SF
Property subtype
Office
Zoning
Commercial
Building Details
Year Built
1997
Year Renovated
2021
Buildings
1
Stories
1
Units
11
Listing Agency:
KW Commercial
Listed By:
Joe Pleva · License #TN276752
(423) 667-6204
Source:
Crexi
Added: May 4
Changed: Sep 2
Last Checked: Sep 1 at 11:24PM
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 KW Commercial
Investment Insights
Based on property information with market context.
This 1,500-square-foot office unit, built in 1997, provides four private offices alongside a lobby, conference room, kitchenette, and two bathrooms. Interior finishes include fresh paint, cove molding, modern black ceiling tiles, luxury vinyl plank flooring, conference-room cabinetry, and a granite kitchenette countertop.
The property is positioned within 1/2 mile of I-75 and 1 mile from Hamilton Place. Parking is located directly in front of the unit, providing convenient access for clients and visitors. Commercial zoning supports its office use.
The property is positioned within 1/2 mile of I-75 and 1 mile from Hamilton Place. Parking is located directly in front of the unit, providing convenient access for clients and visitors. Commercial zoning supports its office use.
Key Highlights
- 1,500‑square‑foot office unit built in 1997
- Four private offices plus lobby and conference room
- Kitchenette with granite countertop and conference‑room storage cabinets
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
$17,213
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
5.22%
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%
$344,260
$344.3K
Cap Rate 7%
$245,900
$245.9K
Cap Rate 9%
$191,256
$191.3K
Market Conditions
NOI Build-Up for 1,500 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
$27.0K $18.00/SF
− Vacancy
−$4.1K −$2.70/SF
EGI
$23.0K $15.30/SF
− OpEx
−$5.7K −$3.82/SF
NOI
$17.2K $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%
$344,260
Cap Rate 7%
$245,900
Cap Rate 9%
$191,256
Alternative Uses
Best Use
Office B
$245.9K
$215.2K – $286.9K
NOI $17,213 @ 7.0% cap · market cap 5.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$331.3K
$289.9K – $386.5K
NOI $23,190 @ 7.0% cap · market cap 7.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,392
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 - Commercially zoned workspace includes a reception area, meeting room, kitchenette, and two restrooms.
Where is this office units located?
The property is located at 6872 MCCUTCHEON RD Chattanooga, TN.
What is the asking price?
The asking price for this property is $330,000.
What are key features of this property?
This property features: 1,500‑square‑foot office unit built in 1997; Four private offices plus lobby and conference room; Kitchenette with granite countertop and conference‑room storage cabinets
