Industrial Warehouse with Loading
For Sale
$2,999,500
7612 Drag Strip Rd, Fairview, TN 37062
Industrial-zoned warehouse with multiple loading docks, municipal services, and high-speed internet access.
Property Size16,000 SF
Lot Size3.10 Acres
Price / SF$187.47
Days on Market309
Property Features for 7612 Drag Strip Rd
General Information
Standard status
Active
Size
16,000 SF
Lot size
3.10 Acres
Zoning
Industrial
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Additional Details
Warehouse Space
16,000 SF
Building Details
Year Built
1984
Listing Agency:
Loch Company
(615) 790-5099
Listed By:
Thomas E. Lochbihler 6157905099
Source:
Sumnercountyhomelistings
Added: Oct 24, 2025
Changed: Aug 28
Last Checked: Aug 26 at 5:40AM
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 Loch Company
Investment Insights
Based on property information with market context.
Built in 1984, this warehouse contains 16,000 square feet on 3.1 industrial acres. The facility includes multiple loading docks and a sloped roof with ceiling heights ranging from 18 to 10 feet.
The property is located in Fairview, Tennessee, with access to the I-40 interstate. City of Fairview industrial zoning applies, and the site is served by sewer, city utilities, and high-speed internet.
The property is located in Fairview, Tennessee, with access to the I-40 interstate. City of Fairview industrial zoning applies, and the site is served by sewer, city utilities, and high-speed internet.
Key Highlights
- 16,000 sq. ft. warehouse on 3.1 industrial acres
- Multiple loading docks
- Ceiling heights range from 18 to 10 feet
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
$139,536
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
4.65%
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%
$2,790,720
$2.8M
Cap Rate 7%
$1,993,371
$2.0M
Cap Rate 9%
$1,550,400
$1.6M
Market Conditions
NOI Build-Up for 16,000 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
$172.8K $10.80/SF
− Vacancy
−$8.6K −$0.54/SF
EGI
$164.2K $10.26/SF
− OpEx
−$24.6K −$1.54/SF
NOI
$139.5K $8.72/SF
Area
Williamson County, TN
Vacancy
5.00%
Lease Rate
$10.80 /SF/Yr
Expense Ratio
15.00%
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%
$2,790,720
Cap Rate 7%
$1,993,371
Cap Rate 9%
$1,550,400
Alternative Uses
Best Use
Warehouse
$1.99M
$1.74M – $2.33M
NOI $139,536 @ 7.0% cap · market cap 4.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.69M
$4.10M – $5.47M
NOI $328,320 @ 7.0% cap · market cap 10.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
38
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37062, TN
12,710
Population
4,962
Households
2.6
Avg Household Size
39
Median Age
36%
College-Educated
94%
High-School Grad
69.2 sq mi
ZIP Area
184
Density / Sq Mi
$87,598
Median Household Income
$50,140
Median Earnings
$1,302
Median Rent
$344,600
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.
Frequently Asked Questions
What type of property is this?
Warehouse - Industrial-zoned warehouse with multiple loading docks, municipal services, and high-speed internet access.
Where is this warehouse located?
The property is located at 7612 Drag Strip Rd Fairview, TN.
What is the asking price?
The asking price for this property is $2,999,500.
What are key features of this property?
This property features: 16,000 sq. ft. warehouse on 3.1 industrial acres; Multiple loading docks; Ceiling heights range from 18 to 10 feet
