Office-Warehouse Flex
For Sale
$2,500,000
506 James Street, Brainerd, MN 56401
Commercial Sale, Brainerd, MN
Property Size27,402 SF
Lot Size1.82 Acres
Price / SF$91.23
Days on Market428
Property Features for 506 James Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial
Parking features
Covered, Parking Lot
Exterior features
Stucco
Subdivision
West Brainerd
Lot features
Corner Lot
High school district
Brainerd
Directions
From Hwy 210/371 intersection in Baxter - East on Hwy 210 (Washington St) approx. 1 1/4 miles - North on NW 5th St - Property is the SE corner of NW 5th St and James St
Standard status
Active
APN
41040790
Lot size
1.82 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
46268
Utilities
Heating system
Oil
Cooling system
Central Air
Building Details
Year built
1989
Building materials
Concrete
Roof type
Flat, Rubber
Listing Agency:
Close-Converse Commercial Prop
(218) 828-3334
Listed By:
Chris Close · License #20286846
(218) 828-3334
Added: Jun 26, 2025
Changed: Aug 27
Last Checked: Aug 27 at 1:06PM
MLS# 6745900
Copyright © 2026 Northstar MLS. 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 flex-space property combines office and industrial improvements within a 27,402-square-foot building. The main level contains 12,319 square feet of office area and 14,019 square feet of warehouse area, while the upper level adds 1,064 square feet. Office improvements include a reception area, open work areas, 10 private offices, a conference room, and a kitchen and dining area. Warehouse features include a large open area with one overhead door, a receiving room with loading dock access, and a second warehouse served by four overhead doors.
The property occupies 1.82 acres at 506 James Street in Brainerd, Minnesota, near the Washington Street corridor. Additional physical features include covered parking and a parking lot, central air, oil heat, concrete construction, stucco exterior, and a flat rubber roof. Built in 1989, the facility offers a substantial combination of workplace, storage, receiving, and distribution space.
The property occupies 1.82 acres at 506 James Street in Brainerd, Minnesota, near the Washington Street corridor. Additional physical features include covered parking and a parking lot, central air, oil heat, concrete construction, stucco exterior, and a flat rubber roof. Built in 1989, the facility offers a substantial combination of workplace, storage, receiving, and distribution space.
Key Highlights
- 27,402 SF building on 1.82 acres
- Main level includes 12,319 SF of office area and 14,019 SF of warehouse area
- Office layout includes 10 private offices, conference room, reception, and kitchen/dining 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
$194,959
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
7.80%
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%
$3,899,180
$3.9M
Cap Rate 7%
$2,785,129
$2.8M
Cap Rate 9%
$2,166,211
$2.2M
Market Conditions
NOI Build-Up for 27,402 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
$238.7K $8.71/SF
− Vacancy
−$9.3K −$0.34/SF
EGI
$229.4K $8.37/SF
− OpEx
−$34.4K −$1.26/SF
NOI
$195.0K $7.11/SF
Area
Crow Wing County, MN
Vacancy
3.90%
Lease Rate
$8.71 /SF/Yr
Expense Ratio
15.00%
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%
$3,899,180
Cap Rate 7%
$2,785,129
Cap Rate 9%
$2,166,211
Alternative Uses
Best Use
Office B
$4.44M
$3.88M – $5.18M
NOI $310,739 @ 7.0% cap · market cap 12.43%
Second Best
Flex RnD
$3.60M
$3.15M – $4.19M
NOI $251,674 @ 7.0% cap · market cap 10.07%
Theoretical Best
Office A
$5.82M
$5.09M – $6.79M
NOI $407,216 @ 7.0% cap · market cap 16.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Drive-in doors
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
573
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 56401, MN
30,632
Population
16,038
Households
1.9
Avg Household Size
40
Median Age
24%
College-Educated
94%
High-School Grad
322.6 sq mi
ZIP Area
95
Density / Sq Mi
$70,269
Median Household Income
$40,172
Median Earnings
$918
Median Rent
$237,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- The Chameleon Culinary Co. — 619 sw 5th st, brainerd, mn 56401
Frequently Asked Questions
What type of property is this?
Flex space - Combined office and warehouse improvements support professional, industrial, and logistics-oriented operations.
Where is this flex space located?
The property is located at 506 James Street Brainerd, MN.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 27,402 SF building on 1.82 acres; Main level includes 12,319 SF of office area and 14,019 SF of warehouse area; Office layout includes 10 private offices, conference room, reception, and kitchen/dining area
