Flex Suite with Garage
For Sale
$170,000
2505 S Federal Suite 4, Mason City, IA 50401
COMMERCIAL/INDUSTRIAL, Shop, MASON CITY, IA
Property Size1,500 SF
Price / SF$113.33
Days on Market791
Property Features for 2505 S Federal Suite 4
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Z4 - Multi-Use District
Subdivision
Southeast
Standard status
Active
Taxes and HOA fees
Tax Description
Long
Legal Description
Long
Building Details
Building materials
Metal
Architectural style
Other
Listing Agency:
EXIT REALTY MASON CITY
(641) 424-3005
Listed By:
ZELDA ELWOOD
(641) 424-3005
Added: Jul 1, 2024
Changed: Aug 19
Last Checked: Aug 30 at 5:06AM
MLS# 240440
Copyright © 2026 Greater Mason City Board 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.
These metal flex suites are offered in vanilla-box condition, allowing the interior to be configured for the occupant’s intended use. Each unit measures 30 X 50 and includes a 14' garage door, a walk-in entry door, and insulation described as 14-16" R50 value insulation.
Electrical service is provided through an individual 200 amp panel for each suite, along with 6 lights and 6 outlets. The property is zoned Z4 - Multi-Use District, and 4 suites out of 6 remain available. The property is located at 2505 S Federal, Suite 4, in Mason City, Iowa.
Electrical service is provided through an individual 200 amp panel for each suite, along with 6 lights and 6 outlets. The property is zoned Z4 - Multi-Use District, and 4 suites out of 6 remain available. The property is located at 2505 S Federal, Suite 4, in Mason City, Iowa.
Key Highlights
- 30 X 50 vanilla‑box flex suites
- 4 suites out of 6 remain available
- Individual 200 amp electrical panel per unit
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
$8,694
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
5.11%
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%
$173,880
$173.9K
Cap Rate 7%
$124,200
$124.2K
Cap Rate 9%
$96,600
$96.6K
Market Conditions
NOI Build-Up for 1,500 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
$13.5K $9.00/SF
− Vacancy
−$1.1K −$0.72/SF
EGI
$12.4K $8.28/SF
− OpEx
−$3.7K −$2.48/SF
NOI
$8.7K $5.80/SF
Area
Cerro Gordo County, IA
Vacancy
8.00%
Lease Rate
$9.00 /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%
$173,880
Cap Rate 7%
$124,200
Cap Rate 9%
$96,600
Alternative Uses
Best Use
Industrial
$124.2K
$108.7K – $144.9K
NOI $8,694 @ 7.0% cap · market cap 5.11%
Second Best
Flex RnD
$122.1K
$106.8K – $142.4K
NOI $8,546 @ 7.0% cap · market cap 5.03%
Theoretical Best
Office A
$376.5K
$329.5K – $439.3K
NOI $26,358 @ 7.0% cap · market cap 15.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
152
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50401, IA
28,981
Population
14,746
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
94%
High-School Grad
148.2 sq mi
ZIP Area
196
Density / Sq Mi
$63,807
Median Household Income
$38,929
Median Earnings
$868
Median Rent
$134,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Unfinished commercial suites provide customizable interior space with dedicated electrical service and separate pedestrian and vehicle access.
Where is this flex space located?
The property is located at 2505 S Federal Suite 4 Mason City, IA.
What is the asking price?
The asking price for this property is $170,000.
What are key features of this property?
This property features: 30 X 50 vanilla‑box flex suites; 4 suites out of 6 remain available; Individual 200 amp electrical panel per unit
