215 & 223 Commerce Street
215-223 Commerce Street | Kingsport, TN 37660-4318, US
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Kingsport's steady, measured growth is its quiet advantage. Fast-growing markets like Nashville often overbuild during boom cycles and pay for it in vacancy spikes. Kingsport doesn't carry that risk. Commercial fundamentals here are unusually tight across every sector — Office at 4.0% vacancy, Retail at 1.5%, and Multifamily at 5.6%, all outperforming national averages. What makes this property a rare opportunity is the location: the historic core of downtown, where the inventory is finite and effectively irreplaceable. You can't build more historic buildings, and the city isn't adding new ones to the downtown center anytime soon. Kingsport buying power per dollar of retail rent is 10% to 24% higher than Knoxville, Nashville, and Asheville, NC. This metric is critical: rent is ultimately funded by tenant revenue, which is directly tied to the purchasing power of the surrounding population. In Kingsport, that relationship is more favorable. Rare two-address downtown asset — ±17, 750 SF across 215 + 223 Commerce Street inside a single building. 100% occupied with four active tenants (Ole Crow Tavern, King City Distillery, G1 Elite, Found Objects). Two of the four leases are intentionally short-term, structured to deliver flexible vacancy to an owner-operator. Includes a ~$500, 000 turnkey commercial kitchen and bar build-out, a working craft distillery with tasting room, and industrial-size overhead doors on the 223 Commerce gym bay supporting supply company, contractor showroom, plumbing/HVAC/electrical distributor, or light fabrication uses. B-2 Central Business District zoning. Qualified federal Opportunity Zone plus TIF District, PILOT District, and Tennessee Main Street boundary — eligible for Façade Grant, Redevelopment Grant, and Downtown Kingsport Loan Program. Flood Zone B/X (buyer to verify). Sold together as one building under a single transaction.
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215 & 223 Commerce Street is one of Downtown Kingsport’s most distinctive commercial assets — approximately 17, 750 square feet of flexible space contained within a single building yet operating under two separate street addresses. That multi-address configuration is genuinely rare for the market: it gives an owner the footprint of a larger facility while preserving the option to operate, brand, or sub-lease as multiple distinct storefronts and suites under one roof. The building is 100% occupied across four tenants — a tavern with a full commercial kitchen, a craft distillery, a high-end fitness operator, a destination retail concept, and a supplemental storefront. Two leases are intentionally short-term, letting a buyer underwrite a stabilized, in-place rent roll from day one and step into those spaces as the leases roll — capturing income today while retaining full control of the building going forward. Inside the building, the prior food-and-beverage build-out is the standout asset. Anchor tenant Ole Crow Tavern has invested approximately $500, 000 in a fully upgraded commercial kitchen and bar build-out — hood system, line equipment, finishes, and front-of-house infrastructure all in place. That level of turnkey F&B infrastructure would be cost-prohibitive for a buyer to replicate from scratch and gives the next operator (or the next tenant) an immediate, move-in-ready restaurant platform. On the 223 Commerce side, the gym space features industrial-size overhead doors — an unusual and valuable feature in a downtown building. Those doors make the space readily convertible to a wide range of higher-clearance, drive-in, or load-in/load-out uses: a supply company, contractor showroom with stock area, plumbing/HVAC/electrical distributor, flooring or window/door showroom, light fabrication, or commercial service operator who needs to roll trucks or material directly into the building. Few Downtown Kingsport spaces can accommodate that kind of operation The property sits inside the City of Kingsport’s Central Business District — which is simultaneously a TIF District, a PILOT District, a federally designated Qualified Opportunity Zone, and part of the Tennessee Main Street program — placing it inside the boundary eligible for the City’s Façade Grant Program, Redevelopment Grant Program, and Downtown Kingsport Loan Program. Qualified Opportunity Zone designation additionally allows qualifying investors to defer capital gains, reduce the tax on those gains, and grow their Opportunity Zone investment capital-gains-tax-free, with no depreciation recapture, after a 10-year hold.