Large-Format Retail
For Sale
Contact for pricing
7951 Winchester Rd, Memphis, TN 38125
Established retail corridor with national tenants and convenient Interstate 385 access.
Property Size49,548 SF
Price / SF$150
Days on Market144
Property Features for 7951 Winchester Rd
General Information
Standard status
Active
Size
49,548 SF
Property subtype
Retail
Building Details
Year Built
2005
Listing Agency:
Cushman & Wakefield | Commercial Advisors LLC - Memphis, Tennessee
(901) 366-6070
Listed By:
Carson Claybrook · License #TN 314998
Source:
Crexi
Added: Apr 9
Changed: Aug 30
Last Checked: Aug 30 at 2:19PM
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 Cushman & Wakefield | Commercial Advisors LLC - Memphis, Tennessee
Investment Insights
Based on property information with market context.
This 49,548 SF retail building at 7951 Winchester Rd was completed in 2005 and formerly operated as an Ashley Homestore. The large-format layout provides an established retail footprint within the Centennial Crossing corridor.
The property sits along Winchester Road near Hacks Cross Road, approximately ±0.5 miles from Interstate 385. Surrounding national retailers include Costco, Lowe’s, PetSmart, Walgreens, and Starbucks, while FedEx World Headquarters is directly across the road. Average household income exceeds $122,000 within five miles, providing clear demographic context for the trade area.
The property sits along Winchester Road near Hacks Cross Road, approximately ±0.5 miles from Interstate 385. Surrounding national retailers include Costco, Lowe’s, PetSmart, Walgreens, and Starbucks, while FedEx World Headquarters is directly across the road. Average household income exceeds $122,000 within five miles, providing clear demographic context for the trade area.
Key Highlights
- 49,548 SF retail building completed in 2005
- Former Ashley Homestore location at 7951 Winchester Rd
- Approximately ±0.5 miles from Interstate 385
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
$574,360
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
7.73%
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%
$11,487,200
$11.5M
Cap Rate 7%
$8,205,143
$8.2M
Cap Rate 9%
$6,381,778
$6.4M
Market Conditions
NOI Build-Up for 49,548 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
$891.9K $18.00/SF
− Vacancy
−$71.3K −$1.44/SF
EGI
$820.5K $16.56/SF
− OpEx
−$246.2K −$4.97/SF
NOI
$574.4K $11.59/SF
Area
ZIP 38125
Vacancy
8.00%
Lease Rate
$18.00 /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%
$11,487,200
Cap Rate 7%
$8,205,143
Cap Rate 9%
$6,381,778
Alternative Uses
Best Use
Retail
$8.21M
$7.18M – $9.57M
NOI $574,360 @ 7.0% cap · market cap 7.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.15M
$11.51M – $15.34M
NOI $920,404 @ 7.0% cap · market cap 12.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
549
Businesses Nearby
514k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 35%
Shops & Services 22%
Superstores 21%
Groceries 9%
Costco Wholesale
Superstores
107,482 visits/mo
0.0 miles
Kroger
Groceries
46,014 visits/mo
0.3 miles
Burlington
Apparel
29,809 visits/mo
0.4 miles
Lowe's
Home Improvements & Furnishings
24,781 visits/mo
0.2 miles
Whataburger
Dining
22,721 visits/mo
0.4 miles
Demographics for 38125, TN
40,970
Population
16,435
Households
2.5
Avg Household Size
37
Median Age
37%
College-Educated
95%
High-School Grad
19.0 sq mi
ZIP Area
2,156
Density / Sq Mi
$83,184
Median Household Income
$45,793
Median Earnings
$1,440
Median Rent
$230,400
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Established retail corridor with national tenants and convenient Interstate 385 access.
Where is this retail space located?
The property is located at 7951 Winchester Rd Memphis, TN.
What is the asking price?
The asking price for this property is $7,432,200.
What are key features of this property?
This property features: 49,548 SF retail building completed in 2005; Former Ashley Homestore location at 7951 Winchester Rd; Approximately ±0.5 miles from Interstate 385
