Professional Office
For Sale
Contact for pricing
7059 Lee Highway, Chattanooga, TN 37421
Commercially zoned office property with parking and convenient access to I-75 in central Chattanooga.
Property Size2,925 SF
Price / SF$247.86
Days on Market8
Property Features for 7059 Lee Highway
General Information
Standard status
Active
Size
2,925 SF
Class
A
Property subtype
Office
Zoning
Commercial
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$64,536
Additional Details
Cap Rate
8.9%
Highway Access
Yes
Building Details
Year Built
1997
Year Renovated
2026
Buildings
1
Units
1
Tenancy
Single
Listing Agency:
KW Commercial
(423) 667-6204
Listed By:
Joe Pleva · License #TN276752
Source:
Crexi
Added: Aug 25
Changed: Aug 31
Last Checked: Aug 31 at 11:55PM
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 2,925-square-foot professional office property was built in 1997 and offers a well-appointed layout for business operations. The property is zoned Commercial and includes ample parking, supporting day-to-day access for employees, clients, and customers.
Situated at 7059 Lee Highway in central Chattanooga, the office is surrounded by professional and retail businesses. Its location provides direct regional connectivity through convenient access to I-75 and serves as a practical addition to an office-focused investment portfolio. The property is marketed with an 8.9 cap rate.
Situated at 7059 Lee Highway in central Chattanooga, the office is surrounded by professional and retail businesses. Its location provides direct regional connectivity through convenient access to I-75 and serves as a practical addition to an office-focused investment portfolio. The property is marketed with an 8.9 cap rate.
Key Highlights
- 2,925 SF professional office property
- Built in 1997
- Commercial zoning
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
$33,564
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
4.63%
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%
$671,280
$671.3K
Cap Rate 7%
$479,486
$479.5K
Cap Rate 9%
$372,933
$372.9K
Market Conditions
NOI Build-Up for 2,925 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
$52.7K $18.00/SF
− Vacancy
−$7.9K −$2.70/SF
EGI
$44.8K $15.30/SF
− OpEx
−$11.2K −$3.82/SF
NOI
$33.6K $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%
$671,280
Cap Rate 7%
$479,486
Cap Rate 9%
$372,933
Alternative Uses
Best Use
Office B
$479.5K
$419.6K – $559.4K
NOI $33,564 @ 7.0% cap · market cap 4.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$646.0K
$565.3K – $753.7K
NOI $45,220 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
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 office property with parking and convenient access to I-75 in central Chattanooga.
Where is this office units located?
The property is located at 7059 Lee Highway Chattanooga, TN.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: 2,925 SF professional office property; Built in 1997; Commercial zoning
