Building Details

Year Built 1984

Listing Agency: Keller Williams Premier Realty Lake Minnetonka

Listed By: Royce Durhman Show Phone

Source: Searchhousesnow

Added: Sep 7 Last Checked: Sep 7 at 3:08PM

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Investment Insights

Based on property information with market context.

This flex property at 1 Premier Dr includes 8,738 SF of office area, 14,083 SF dedicated to manufacturing and technology functions, and 3,999 SF of warehouse space within a 26,820 SF building. The property has 1.39 acres and was developed in phases, with the original structure completed in 1984 and an addition completed in 1996. Current occupancy is 10.63%, with 5,886 SF of office space, 14,083 SF of manufacturing/tech space, and 3,999 SF of warehouse space available.

The facility is zoned I-1 Industrial and provides 77 off-street parking stalls. Manufacturing and technology areas have 12-foot clear heights, while the warehouse reaches 20 feet. Four drive-in doors support loading, and heavy three-phase power serves the building. Improvements include a rubber membrane roof installed in 2019, nine rooftop HVAC units installed in 2019, and wet-pipe fire sprinklers throughout. The warehouse is heated and air-conditioned.

Key Highlights

• 26,820 SF building on 1.39 acres
• 8,738 SF office, 14,083 SF manufacturing/tech, and 3,999 SF warehouse
• I‑1 Industrial zoning with heavy three‑phase power

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

$291,365

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

9.11%

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%

$5,827,300 $5.8M

Cap Rate 7%

$4,162,357 $4.2M

Cap Rate 9%

$3,237,389 $3.2M

Market Conditions

NOI Build-Up for 26,820 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

$434.5K $16.20/SF

− Vacancy

−$18.2K −$0.68/SF

EGI

$416.2K $15.52/SF

− OpEx

−$124.9K −$4.66/SF

NOI

$291.4K $10.86/SF

Area

Hennepin County, MN

Vacancy

4.20%

Lease Rate

$16.20 /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%

$5,827,300

Cap Rate 7%

$4,162,357

Cap Rate 9%

$3,237,389

Alternative Uses

Best Use

Warehouse

$5.05M

$4.42M – $5.90M (±1% cap)

NOI $353,800 @ 7.0% cap · market cap 11.06%

Second Best

Office B

$4.55M

$3.98M – $5.31M (±1% cap)

NOI $318,484 @ 7.0% cap · market cap 9.95%

Theoretical Best

Office A

$6.40M

$5.60M – $7.47M (±1% cap)

NOI $447,909 @ 7.0% cap · market cap 14.00%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Real Estate Agency Law Firm HVAC Service Parking Lot & Garage Electrical Service Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

4

Drive-in doors

10.6%

Occupancy

Yes

Heavy power

Yes

Sprinkler system

Location Intelligence

Trade Area within ½ mile

382

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 55356, MN

5,790

Population

2,312

Households

2.5

Avg Household Size

45

Median Age

64%

College-Educated

98%

High-School Grad

13.1 sq mi

ZIP Area

442

Density / Sq Mi

$171,333

Median Household Income

$90,433

Median Earnings

$1,732

Median Rent

$712,800

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Industrial flex property with office, production, and warehouse areas, I-1 zoning, heavy three-phase power, and extensive parking.

Where is this flex space located?

The property is located at 1 Premier Dr Long Lake, MN.

What is the asking price?

The asking price for this property is $3,200,000.

What are key features of this property?

This property features: 26,820 SF building on 1.39 acres; 8,738 SF office, 14,083 SF manufacturing/tech, and 3,999 SF warehouse; I‑1 Industrial zoning with heavy three‑phase power