Q2 2012 Knoxville, Tennessee Retail Property Sales Analysis

CRE Resources

View our Knoxville, Tennessee Submarket Map

Q2 2012 Knoxville, Tennessee Retail Property Sales Analysis


Retail investment sales have been somewhat more active, part of the strong demand for single-tenant assets nationwide. Three traded in the second quarter according to Reis, for $8.0 million at a mean price of $67 psf and a mean cap rate of just 3.1%. Not surprisingly given the low cap rate these were single-tenant deals—the 11,600-square-foot The Palace, the 82,780-square-foot Schubert Lumber Company (sold by the company), and the 23,860-square-foot Star Tracks Arcade. Other recent sales include an Outback Steakhouse and a Sun Trust Bank, but sales over the past four quarters are dominated by the 549,000-square-foot Colonial Pinnacle Turkey Creek, sold by Colonial Properties Trust to a pension fund last December for $131.7 million ($240 psf). The rolling 12 month cap rate as of the second quarter of 2012 was 3.9%.