Automotive Service and Retail
For Sale
Contact for pricing
905 Callahan Dr, Knoxville, TN 37912
Built in 2016 with three drive-in doors and a high-clearance garage featuring car lifts and a second-level office.
Property Size8,600 SF
Lot Size2.57 Acres
Price / SF$436.05
Days on Market338
Property Features for 905 Callahan Dr
General Information
Standard status
Active
Size
8,600 SF
Lot size
2.57 Acres
Property subtype
RETAIL
Site & Location
Traffic Count
26,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Amenities
drive-in doors
high-clearance service garage
car lifts
private second-level office
signage
Building Details
Year Built
2016
Listing Agency:
Realty Executives Associates
(865) 688-3232
Listed By:
Jerry J Headrick
(865) 679-1876
Source:
Moodyscre
Added: Oct 10, 2025
Changed: Aug 31
Last Checked: Sep 12 at 11:18AM
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 Realty Executives Associates
Investment Insights
Based on property information with market context.
Built in 2016, this 8,600-square-foot automotive-oriented commercial building sits on 2.57 acres and is designed for automotive sales, service, or retail conversion. The facility includes three drive-in doors, a high-clearance service garage with car lifts, and a private second-level office overlooking the service area.
The property is located directly off Interstate 75 and benefits from visibility to more than 26,000 vehicles daily. It also connects to major Class A commercial centers, with national anchors including Target, Kroger, The Home Depot, Lowe’s, and Walmart at nearby Northwest Crossing and Crown Pointe Plaza.
Offered for sale or possible lease, the asset combines modern flexibility with strong access and signage for an owner-user or investor seeking a turnkey automotive facility in a growing Knoxville area.
The property is located directly off Interstate 75 and benefits from visibility to more than 26,000 vehicles daily. It also connects to major Class A commercial centers, with national anchors including Target, Kroger, The Home Depot, Lowe’s, and Walmart at nearby Northwest Crossing and Crown Pointe Plaza.
Offered for sale or possible lease, the asset combines modern flexibility with strong access and signage for an owner-user or investor seeking a turnkey automotive facility in a growing Knoxville area.
Key Highlights
- Built in 2016: 8,600 SF modern, flexible commercial building on 2.57 acres in Knoxville
- Designed for automotive use with three drive‑in doors
- High‑clearance service garage includes car lifts
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
$123,530
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
3.29%
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%
$2,470,600
$2.5M
Cap Rate 7%
$1,764,714
$1.8M
Cap Rate 9%
$1,372,556
$1.4M
Market Conditions
NOI Build-Up for 8,600 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
$185.8K $21.60/SF
− Vacancy
−$9.3K −$1.08/SF
EGI
$176.5K $20.52/SF
− OpEx
−$52.9K −$6.16/SF
NOI
$123.5K $14.36/SF
Area
Knoxville, TN
Vacancy
5.00%
Lease Rate
$21.60 /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%
$2,470,600
Cap Rate 7%
$1,764,714
Cap Rate 9%
$1,372,556
Alternative Uses
Best Use
Retail
$1.76M
$1.54M – $2.06M
NOI $123,530 @ 7.0% cap · market cap 3.29%
Second Best
Industrial
$824.6K
$721.5K – $962.0K
NOI $57,720 @ 7.0% cap · market cap 1.54%
Theoretical Best
Office A
$2.13M
$1.86M – $2.49M
NOI $149,103 @ 7.0% cap · market cap 3.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
26,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
184
Businesses Nearby
2k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
The UPS Store
Shops & Services
1,558 visits/mo
0.3 miles
Caliber Collision
Shops & Services
522 visits/mo
0.1 miles
American Tire Distributors
Shops & Services
178 visits/mo
0.2 miles
Demographics for 37912, TN
22,313
Population
10,916
Households
2
Avg Household Size
36
Median Age
23%
College-Educated
88%
High-School Grad
10.6 sq mi
ZIP Area
2,105
Density / Sq Mi
$44,754
Median Household Income
$30,859
Median Earnings
$1,050
Median Rent
$185,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Knoxville, TN
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Similar Off Market Nearby
- Custom Cycle Corner — 919 Murray Rd NW, Knoxville, TN 37912
- ACTS Fleet Maintenance Service — 6818 Sandy Vw Wy, Knoxville, TN 37912
- Caliber Collision — 1106 Callahan Dr, Knoxville, TN 37912
- American Tire Distributors — 916 Callahan Dr, Knoxville, TN 37912
- Viles Automotive Service Center — 905 Callahan Dr, Knoxville, TN 37912
Frequently Asked Questions
What type of property is this?
Auto shop - Built in 2016 with three drive-in doors and a high-clearance garage featuring car lifts and a second-level office.
Where is this auto shop located?
The property is located at 905 Callahan Dr Knoxville, TN.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: Built in 2016: 8,600 SF modern, flexible commercial building on 2.57 acres in Knoxville; Designed for automotive use with three drive‑in doors; High‑clearance service garage includes car lifts
