Updated Creative Space With Private
For Sale
$369,900
79 Federal Drive, Jackson, TN 38305
COMMERCIAL - Jackson, TN
Property Size2,792 SF
Lot Size0.25 Acres
Price / SF$132.49
Days on Market47
Property Features for 79 Federal Drive
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
General Businesss
Parking
13
Accessibility
Accessible Approach with Ramp
Elementary school district
Jackson Madison Consolidated District
Standard status
Active
APN
055E A 005.22
Size
2,792 SF
Lot size
0.25 Acres
Taxes and HOA fees
Tax Annual Amount
2685
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Amenities
storage room
break room
wheelchair accessible ramp
Building Details
Year built
1983
Floors in Building
1
Flooring type
Vinyl
Building materials
Brick
Roof type
Shingle
Listing Agency:
Total Realty Source
(731) 574-9340
Listed By:
Lisa Ann Ballinger · License #331923
(731) 223-0919
Added: Jun 24
Changed: Aug 4
Last Checked: Aug 9 at 12:06AM
MLS# 2602947
Copyright © 2026 Central West Tennessee Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,792-square-foot creative space occupies a 0.25-acre parcel and is configured for flexible commercial use. The brick building includes nine private rooms, a storage room, break room, and four bathrooms. Four entrances support separate access points, including a wheelchair-accessible ramp. Interior improvements include vinyl flooring, fresh paint, modern fixtures, and updated appliances. Central heating and central air provide building-wide climate control, while a shingle roof and public water and sewer serve the property. The roof is approximately four years old, and two HVAC units were replaced around 2022.
The property is located just off Carriage House Drive in Jackson, with reported daily traffic exceeding 8,500 vehicles and convenient interstate access. One room is occupied by a month-to-month med/spa tenant, creating an existing rental component. The owner will also consider leasing the property.
The property is located just off Carriage House Drive in Jackson, with reported daily traffic exceeding 8,500 vehicles and convenient interstate access. One room is occupied by a month-to-month med/spa tenant, creating an existing rental component. The owner will also consider leasing the property.
Key Highlights
- 2,792‑square‑foot creative space on a 0.25‑acre parcel
- Nine private rooms, storage room, break room, and four bathrooms
- Four entrances, including a wheelchair‑accessible ramp
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
$29,794
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
8.05%
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%
$595,880
$595.9K
Cap Rate 7%
$425,629
$425.6K
Cap Rate 9%
$331,044
$331.0K
Market Conditions
NOI Build-Up for 2,792 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
$47.6K $17.04/SF
− Vacancy
−$7.8K −$2.81/SF
EGI
$39.7K $14.23/SF
− OpEx
−$9.9K −$3.56/SF
NOI
$29.8K $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%
$595,880
Cap Rate 7%
$425,629
Cap Rate 9%
$331,044
Alternative Uses
Best Use
Office B
$425.6K
$372.4K – $496.6K
NOI $29,794 @ 7.0% cap · market cap 8.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$574.9K
$503.1K – $670.8K
NOI $40,245 @ 7.0% cap · market cap 10.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
719
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Creative space - Flexible commercial interior with updated finishes, multiple entrances, and public water and sewer service.
Where is this creative space located?
The property is located at 79 Federal Drive Jackson, TN.
What is the asking price?
The asking price for this property is $369,900.
What are key features of this property?
This property features: 2,792‑square‑foot creative space on a 0.25‑acre parcel; Nine private rooms, storage room, break room, and four bathrooms; Four entrances, including a wheelchair‑accessible ramp
