Commercial Real Estate Market in Knoxville, TN
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
696 active listings and 8,253 off-market properties in Knoxville, TN. Commercial property asks $67/SF to buy and $19.49/SF/Yr to lease.
Market Trends
Knoxville, TN spans 386.0 square miles in Knox County, Tennessee. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Knoxville, TN runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail vacancy in Knoxville, TN runs 5.1% in 2025, up from 4.6% in 2019.
Vacancy Rate %
Industrial
Industrial vacancy in Knoxville, 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 Knoxville, TN asks $170/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 51%
- Industrial 9.7%
- Open space 9.5%
- Commercial 8.4%
- Mixed use 7.4%
- Agricultural 4.3%
- Civic 4%
Largest Zones share of zoned land by district
Single Family Residential Neighborhood
Single Family Residential Neighborhood
Parks And Open Space
Water
General Industrial
Knoxville, TN zones 55,365 acres across 44 districts. Commercial zoning covers 8.4% of zoned land, residential 51%, open space 9.5% and industrial 9.7%. The largest single district is Single Family Residential Neighborhood at 31.3%. For commercial buyers the practical constraint is that only 18.1% of land carries a commercial or industrial designation.
Single Family Residential Neighborhood (RN-1)
RN-1 Single-Family Residential Neighborhood Zoning District The RN-1 Single-Family Residential Neighborhood Zoning District is intended to accommodate traditional low density residential neighborhoods in the City of Knoxville, exhibiting a predominant development pattern of single-family homes on relatively large lots and with generous setbacks. Two-family d…
Market overview
Demographics & Economy
Knoxville, TN has 434,474 residents in 196,720 households. Density runs 1,126 people per square mile. Median household income here is $76,056 and median gross rent $1,256 a month.
434,474
Population
196,720
Households
2.2
Avg Household Size
38
Median Age
42%
College-Educated
92%
High-School Grad
386 sq mi
ZIP Area
1,126
Density / Sq Mi
$76,056
Median Household Income
$44,412
Median Earnings
$1,256
Median Rent
$303,552
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Rockford | — | — |
| Powell | — | — |
| Seymour | — | — |
| McGhee Tyson ANG Base | — | — |
Commercial property in Knoxville, TN asks $67/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Knoxville?
Commercial property in Knoxville, TN asks an average of $67 per square foot. The 6 most recent recorded sales traded at a median of $538/SF. Multifamily carries the highest asking price at $170/SF.
How much does it cost to lease commercial space in Knoxville?
Asking lease rates in Knoxville, TN average $19.49 per square foot per year.
What zoning applies to commercial property in Knoxville?
Knoxville, TN zones 55,365 acres across 44 districts, of which 8.4% is commercial and 9.7% industrial. The largest single district is Single Family Residential Neighborhood at 31.3% of zoned land. RN-1 Single-Family Residential Neighborhood Zoning District The RN-1 Single-Family Residential Neighborhood Zoning District is intended to accommodate traditional low density residential neighborhoods in the City of Knoxville, exhibiting a predominant development pattern of single-family homes on relatively large lots and with generous setbacks. Two-family d… Residential zoning covers 51% and open space 9.5%.
Where does Realmo's Knoxville market data come from?
Realmo compiles Knoxville, TN figures from 6 recent recorded sales, 507 active sale listings, 189 active lease listings, 8,253 tracked off-market properties, the current Knoxville zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 507 active for-sale and 189 active for-lease listings in Knoxville, 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: 55,365 zoned acres across 44 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, industrial vacancy is reported at South region level and multifamily 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
