Storefront Retail
For Sale
$525,000
222 N Central Ave, Duluth, MN 55807
COMMERCIAL, Duluth, MN
Property Size2,172 SF
Lot Size0.21 Acres
Price / SF$241.71
Days on Market69
Property Features for 222 N Central Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
1
Half bathrooms
1
Rooms
Bathroom 1
Security features
Security System
Interior features
Security System
Basement
Block
Elementary school district
Duluth #709
Middle school district
Duluth #709
High school district
Duluth #709
Directions
N Central Ave to salon
Subdivision
LSAR
Standard status
Active
Size
2,172 SF
Lot size
0.21 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
8162
Utilities
Heating system
Baseboard
Cooling system
Central Air
Building Details
Year built
1990
Number of units
2
Roof type
Rubber
Listing Agency:
RE/MAX Results · RE/MAX International
(952) 829-2900
Listed By:
Trish Kroening
(952) 829-2900
Added: Jun 16
Changed: Aug 20
Last Checked: Aug 23 at 11:06PM
MLS# 6123029
Copyright © 2026 Lake Superior Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,172-square-foot storefront retail property, built in 1990, is configured for two business operations. The salon area includes 9 styling chairs, 5 shampoo stations, a nail room, storage, and an office. Additional features include a mechanical mop sink area, an updated half bath, and a spacious entrance suitable for product displays. A security system, baseboard heating, central air, and a rubber roof are also in place.
The property occupies 0.21 acres at 222 N Central Ave in Duluth, Minnesota, with 15 on-site parking spaces. Its position next to Super One provides an established adjacent retail reference point. The existing layout combines customer-facing storefront space with specialized salon and service areas.
The property occupies 0.21 acres at 222 N Central Ave in Duluth, Minnesota, with 15 on-site parking spaces. Its position next to Super One provides an established adjacent retail reference point. The existing layout combines customer-facing storefront space with specialized salon and service areas.
Key Highlights
- 2,172‑square‑foot storefront property on 0.21 acres
- Existing salon layout with 9 chairs and 5 shampoo stations
- Separate nail room, office, storage, and mechanical mop sink area
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$20,525
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.91%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$410,500
$410.5K
Cap Rate 7%
$293,214
$293.2K
Cap Rate 9%
$228,056
$228.1K
Market Conditions
NOI Build-Up for 2,172 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$32.6K $15.00/SF
− Vacancy
−$3.3K −$1.50/SF
EGI
$29.3K $13.50/SF
− OpEx
−$8.8K −$4.05/SF
NOI
$20.5K $9.45/SF
Area
St. Louis County, MN
Vacancy
10.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$410,500
Cap Rate 7%
$293,214
Cap Rate 9%
$228,056
Alternative Uses
Best Use
Retail
$293.2K
$256.6K – $342.1K
NOI $20,525 @ 7.0% cap · market cap 3.91%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$842.6K
$737.2K – $983.0K
NOI $58,979 @ 7.0% cap · market cap 11.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
587
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55807, MN
9,674
Population
4,572
Households
2.1
Avg Household Size
39
Median Age
29%
College-Educated
95%
High-School Grad
5.8 sq mi
ZIP Area
1,668
Density / Sq Mi
$63,670
Median Household Income
$36,246
Median Earnings
$797
Median Rent
$164,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Garden Center — Duluth, MN 55807
Frequently Asked Questions
What type of property is this?
Storefront property - Currently arranged for a hair salon and shake shop, with dedicated service areas and customer entry space.
Where is this storefront property located?
The property is located at 222 N Central Ave Duluth, MN.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 2,172‑square‑foot storefront property on 0.21 acres; Existing salon layout with 9 chairs and 5 shampoo stations; Separate nail room, office, storage, and mechanical mop sink area
