Calculate cap rates and net operating income for commercial properties in Tennessee. Compare your results against Tennessee's primary market benchmarks sourced from CBRE H2 2025.
Nashville has become one of the hottest CRE markets in the US, driven by exceptional population growth, no state income tax, diversified economy (healthcare, music/entertainment, tech, finance), and strong corporate relocations (Oracle campus, Amazon second HQ phase). Memphis is a major logistics hub (FedEx World Hub) with a significant distribution market. Chattanooga's Volkswagen plant anchors industrial demand.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.0% | 6.5% |
| Industrial | 5.5% | 7.0% |
| Retail | 5.5% | 7.0% |
| Office | 6.5% | 8.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Tennessee cap rates range from 5.0–6.5% for multifamily (Nashville toward lower end), 5.5–7.0% for industrial and retail, and 6.5–8.5% for office. Nashville's cap rates approach primary market levels nationally, while Memphis, Knoxville, and Chattanooga offer more secondary-market yields.
Nashville combines exceptional population growth (one of the fastest-growing large metros), no state income tax, a diversified economy (HCA Healthcare HQ, major healthcare corridor, Oracle's campus, Amazon Hub, Country Music industry), and strong corporate relocations. The city's multifamily and mixed-use cap rates have compressed to primary-market levels as institutional capital has flooded in.
Memphis hosts FedEx's World Hub (the world's largest air cargo hub), creating exceptional demand for logistics, warehousing, and supply chain industrial facilities. The city's location at the intersection of I-40 and I-55, plus access to the Mississippi River, makes it one of the most important freight hubs in North America. Industrial cap rates around the airport and rail yards are among the most competitive in the mid-South.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.