Flex Space with Service
For Sale
$468,000
712 HWY 18 E, Clear Lake, IA 50428
COMMERCIAL - CLEAR LAKE, IA
Property Size3,879 SF
Lot Size0.44 Acres
Price / SF$120.65
Days on Market591
Property Features for 712 HWY 18 E
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-CBD/C BUS COM
Directions
Corner of HWY 18 and N 8th St, Clear Lake
Subdivision
Outside MC
Standard status
Active
Size
3,879 SF
Lot size
0.44 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
parcel 051247702000
Tax Annual Amount
6414
Legal Description
parcel 051247702000
Utilities
Cooling system
Central Air
Building Details
Year built
1951
Floors in Building
1
Building materials
Block, Frame
Roof type
Metal
Architectural style
Other
Listing Agency:
CENTURY 21 PREFERRED · Century 21 Real Estate
(641) 424-9400
Listed By:
ROGER FLIETH · License #107
(641) 420-5635
Added: Jan 16, 2025
Changed: Aug 6
Last Checked: Aug 30 at 12:06AM
MLS# 250032
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.
This 3,879-square-foot flex property includes a two-bay service shop linked to a 124-by-24-foot section configured for sales, office, and showroom functions. The building dates to 1951 and features block and frame construction, a metal roof, and central air. A substantial on-site parking area serves the improvements.
The property occupies the corner of Highway 18 East and N. 8th Street in Clear Lake, placing it along the Highway 18 corridor and near downtown and the lake. Interstate 35 and the Avenue of the Saints provide regional connections. The building most recently supported a recreational rental operation offering canoes, kayaks, bikes, pontoons, and other recreational equipment. Its existing combination of service, display, and office areas supports a range of commercial configurations.
The property occupies the corner of Highway 18 East and N. 8th Street in Clear Lake, placing it along the Highway 18 corridor and near downtown and the lake. Interstate 35 and the Avenue of the Saints provide regional connections. The building most recently supported a recreational rental operation offering canoes, kayaks, bikes, pontoons, and other recreational equipment. Its existing combination of service, display, and office areas supports a range of commercial configurations.
Key Highlights
- 3,879 SF building on Highway 18 East in Clear Lake
- Two‑bay service shop connected to sales, office, and showroom space
- 124 x 24 feet of connected sales, office, and showroom 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
$29,977
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
6.41%
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%
$599,540
$599.5K
Cap Rate 7%
$428,243
$428.2K
Cap Rate 9%
$333,078
$333.1K
Market Conditions
NOI Build-Up for 3,879 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
$46.5K $12.00/SF
− Vacancy
−$3.7K −$0.96/SF
EGI
$42.8K $11.04/SF
− OpEx
−$12.8K −$3.31/SF
NOI
$30.0K $7.73/SF
Area
Cerro Gordo County, IA
Vacancy
8.00%
Lease Rate
$12.00 /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%
$599,540
Cap Rate 7%
$428,243
Cap Rate 9%
$333,078
Alternative Uses
Best Use
Retail
$428.2K
$374.7K – $499.6K
NOI $29,977 @ 7.0% cap · market cap 6.41%
Second Best
Industrial
$321.2K
$281.0K – $374.7K
NOI $22,483 @ 7.0% cap · market cap 4.80%
Theoretical Best
Office A
$973.7K
$852.0K – $1.14M
NOI $68,161 @ 7.0% cap · market cap 14.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Service bays
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
486
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50428, IA
9,290
Population
5,630
Households
1.7
Avg Household Size
50
Median Age
32%
College-Educated
97%
High-School Grad
117.3 sq mi
ZIP Area
79
Density / Sq Mi
$72,932
Median Household Income
$42,235
Median Earnings
$769
Median Rent
$253,900
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Corner commercial property combines service-shop space with connected sales, office, and showroom areas.
Where is this flex space located?
The property is located at 712 HWY 18 E Clear Lake, IA.
What is the asking price?
The asking price for this property is $468,000.
What are key features of this property?
This property features: 3,879 SF building on Highway 18 East in Clear Lake; Two‑bay service shop connected to sales, office, and showroom space; 124 x 24 feet of connected sales, office, and showroom area
