West Knoxville Industrial
For Sale
$16,100,000
700 Dalen Ln, Knoxville, TN 37932
Dual-building campus near I-40, ideal for investors or owner-users.
Property Size189,000 SF
Lot Size13.00 Acres
Price / SF$85.19
Days on Market170
Property Features for 700 Dalen Ln
General Information
Standard status
Active
Size
189,000 SF
Class
C
Lot size
13.00 Acres
Property subtype
Industrial
Building Details
Building Size
189,000 SF
Year Built
2002
Listing Agency:
Lee & Associates
(865) 309-6272
Listed By:
Matthew Strother · License #369177
(865) 309-6272
Source:
Svnwood
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 8 at 6:20AM
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 Lee & Associates
Investment Insights
Based on property information with market context.
This industrial opportunity in West Knoxville features a dual-building campus with a total area of 189,000 square feet. Situated on approximately 13 acres, the property is zoned CB and is located one mile from I-40 via Lovell Road. Building 1, located at 700 Dalen Lane, offers approximately 106,000 square feet of space with a clear height of approximately 31 feet, 55-foot by 75-foot column spacing, 12 dock doors, and 1 drive-in door. It includes a small office area with 2 restrooms, a heated warehouse with LED lighting, and a wet sprinkler system. Racking can remain for immediate occupancy. Building 2, located at 11110 Gilbert Drive, offers approximately 83,000 square feet, including approximately 4,300 square feet of office space. It comprises four distinct warehouse sections, with the largest section offering approximately 30,000 square feet, a 20-foot clear height, and 50-foot by 30-foot column spacing. This building has 7 dock doors and 1 drive-in door, mixed wet and dry sprinkler systems, and is heated throughout with LED lighting. The property benefits from its proximity to I-40, suitability for one or two tenant configurations, and a 3 Phase / 480V power infrastructure. It is suitable for investment or owner-occupancy in a high-demand Knoxville submarket.
Key Highlights
- 189,000 SF dual‑building campus ideal for investors or owner‑users.
- Located just one mile from I‑40 via Lovell Road.
- Building 1: ±106,000 SF Class A space with ±31’ clear height and 12 dock doors.
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
$1,268,492
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
7.88%
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%
$25,369,840
$25.4M
Cap Rate 7%
$18,121,314
$18.1M
Cap Rate 9%
$14,094,356
$14.1M
Market Conditions
NOI Build-Up for 189,000 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
$1.93M $10.20/SF
− Vacancy
−$115.7K −$0.61/SF
EGI
$1.81M $9.59/SF
− OpEx
−$543.6K −$2.88/SF
NOI
$1.27M $6.71/SF
Area
Knoxville, TN
Vacancy
6.00%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
30.00%
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%
$25,369,840
Cap Rate 7%
$18,121,314
Cap Rate 9%
$14,094,356
Alternative Uses
Best Use
Warehouse
$23.42M
$20.49M – $27.33M
NOI $1,639,594 @ 7.0% cap · market cap 10.18%
Second Best
Industrial
$18.12M
$15.86M – $21.14M
NOI $1,268,492 @ 7.0% cap · market cap 7.88%
Theoretical Best
Office A
$46.81M
$40.96M – $54.61M
NOI $3,276,806 @ 7.0% cap · market cap 20.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
495
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37932, TN
21,726
Population
9,141
Households
2.4
Avg Household Size
38
Median Age
55%
College-Educated
94%
High-School Grad
29.0 sq mi
ZIP Area
749
Density / Sq Mi
$109,900
Median Household Income
$61,936
Median Earnings
$1,516
Median Rent
$431,200
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Tri-Star Indoor Storage — 525 Lovell Rd Suite 3, Knoxville, TN 37932
- Bounce Luggage Storage - Turkey Creek — 11149 Turkey Dr, Knoxville, TN 37934
- Peroulas Moving and Storage — 10652 Dutchtown Rd, Knoxville, TN 37932
- All My Sons Moving & Storage — 509 Lovell Rd, Knoxville, TN 37932
Frequently Asked Questions
What type of property is this?
Warehouse - Dual-building campus near I-40, ideal for investors or owner-users.
Where is this warehouse located?
The property is located at 700 Dalen Ln Knoxville, TN.
What is the asking price?
The asking price for this property is $16,100,000.
What are key features of this property?
This property features: 189,000 SF dual‑building campus ideal for investors or owner‑users.; Located just one mile from I‑40 via Lovell Road.; Building 1: **±106,000 SF Class A space with ±31’ clear height and 12 dock doors.**
