Commercial Real Estate Market in Chattanooga, TN
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
662 active listings and 7,435 off-market properties in Chattanooga, TN. Commercial property asks $47/SF to buy and $18.85/SF/Yr to lease.
Market Trends
Chattanooga, TN spans 222.4 square miles in Hamilton County, Tennessee. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Chattanooga, TN runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail space in Chattanooga, TN asks $149/SF to buy. Vacancy runs 5.4% across the South region in 2025, down from 7% in 2020.
Average Sale Price $/SF
Listings
Vacancy Rate % in South region
Industrial
Industrial vacancy in Chattanooga, TN runs 7.9% across the South region in 2025, up from 6% in 2019. Nearly 2.3x the 2022 low of 3.5%.
Vacancy Rate % in South region
Multifamily
Multifamily space in Chattanooga, TN asks $190/SF to buy. Vacancy runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Average Sale Price $/SF
Listings
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 56.4%
- Industrial 20%
- Open space 13.4%
- Civic 6.9%
- Mixed use 2.4%
- Commercial 0.8%
- Agricultural 0.2%
Largest Zones share of zoned land by district
Residential Neighborhood Zone 1 To 6
Heavy Industrial Zones
Open Space Zone
Residential Neighborhood Zone 1 To 7.5
Commercial Corridor Zone
Chattanooga, TN zones 78,448 acres across 79 districts. Commercial zoning covers 0.8% of zoned land, residential 56.4%, open space 13.4% and industrial 20%. The largest single district is Residential Neighborhood Zone 1 To 6 at 32.1%. For commercial buyers the practical constraint is that only 20.8% of land carries a commercial or industrial designation.
Residential Neighborhood Zone 1 To 6 (RN-1-6)
RN-1-6 Residential Neighborhood Zone ..... The RN-1-6 Residential Neighborhood Zone is intended to accommodate a neighborhood environment predominantly characterized by single-unit homes on lots of 6,000 square feet or greater. (c)
Market overview
Demographics & Economy
Chattanooga, TN has 209,822 residents in 101,048 households. Density runs 944 people per square mile. Median household income here is $64,064 and median gross rent $1,141 a month.
209,822
Population
101,048
Households
2.1
Avg Household Size
37
Median Age
35%
College-Educated
89%
High-School Grad
222.4 sq mi
ZIP Area
944
Density / Sq Mi
$64,064
Median Household Income
$40,030
Median Earnings
$1,141
Median Rent
$264,654
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Signal Mountain | — | — |
| Powells Crossroads | — | — |
| Lupton City | — | — |
| Hixson | — | — |
Commercial property in Chattanooga, TN asks $47/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Chattanooga?
Commercial property in Chattanooga, TN asks an average of $47 per square foot. The 7 most recent recorded sales traded at a median of $248/SF. Multifamily carries the highest asking price at $190/SF.
How much does it cost to lease commercial space in Chattanooga?
Asking lease rates in Chattanooga, TN average $18.85 per square foot per year.
What zoning applies to commercial property in Chattanooga?
Chattanooga, TN zones 78,448 acres across 79 districts, of which 0.8% is commercial and 20% industrial. The largest single district is Residential Neighborhood Zone 1 To 6 at 32.1% of zoned land. RN-1-6 Residential Neighborhood Zone ..... The RN-1-6 Residential Neighborhood Zone is intended to accommodate a neighborhood environment predominantly characterized by single-unit homes on lots of 6,000 square feet or greater. (c) Residential zoning covers 56.4% and open space 13.4%.
Where does Realmo's Chattanooga market data come from?
Realmo compiles Chattanooga, TN figures from 8 recent recorded sales, 545 active sale listings, 117 active lease listings, 7,435 tracked off-market properties, the current Chattanooga zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 545 active for-sale and 117 active for-lease listings in Chattanooga, TN. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 78,448 zoned acres across 79 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at South region level, retail vacancy is reported at South region level and industrial vacancy is reported at South region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
