Building Details

Year Built 1978

Stories 1

Units 1

Listing Agency: Century 21 Moline Realty Inc m***@gmail.com Show Phone

Listed By: Molly Block · License #40739677 Show Phone

Source: Juverealestate

Added: May 11 Changed: Aug 23 Last Checked: Aug 25 at 8:25AM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Century 21 Moline Realty Inc

Investment Insights

Based on property information with market context.

This commercial property is located on Highway 169 and was formerly used as an auto sales lot. The 936 square foot property offers exposure to highway traffic and easy access. It features open space suitable for parking or display. The property is suited for retail, office, service, or automotive businesses. It offers a flexible layout and signage opportunities.

Key Highlights

• High‑visibility location on Highway 169 provides excellent exposure.
• Ample open space is suitable for parking or display.
• Easy access for customers and deliveries.

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

$11,528

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

4.27%

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%

$230,560 $230.6K

Cap Rate 7%

$164,686 $164.7K

Cap Rate 9%

$128,089 $128.1K

Market Conditions

NOI Build-Up for 936 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

$17.7K $18.96/SF

− Vacancy

−$1.3K −$1.37/SF

EGI

$16.5K $17.59/SF

− OpEx

−$4.9K −$5.28/SF

NOI

$11.5K $12.32/SF

Area

Mille Lacs County, MN

Vacancy

7.20%

Lease Rate

$18.96 /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%

$230,560

Cap Rate 7%

$164,686

Cap Rate 9%

$128,089

Alternative Uses

Best Use

Retail

$164.7K

$144.1K – $192.1K (±1% cap)

NOI $11,528 @ 7.0% cap · market cap 4.27%

Second Best

Office B

$158.8K

$138.9K – $185.3K (±1% cap)

NOI $11,115 @ 7.0% cap · market cap 4.12%

Theoretical Best

Office A

$223.3K

$195.4K – $260.5K (±1% cap)

NOI $15,632 @ 7.0% cap · market cap 5.79%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Parking lots & garages

Location Intelligence

Trade Area within ½ mile

3

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 55371, MN

17,132

Population

6,838

Households

2.5

Avg Household Size

40

Median Age

19%

College-Educated

94%

High-School Grad

196.0 sq mi

ZIP Area

87

Density / Sq Mi

$89,674

Median Household Income

$48,624

Median Earnings

$946

Median Rent

$299,100

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

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Frequently Asked Questions

What type of property is this?

Parking lot & garage - High-visibility commercial property with highway access and open space.

Where is this parking lot & garage located?

The property is located at 111 4th Avenue S Pease, MN.

What is the asking price?

The asking price for this property is $269,900.

What are key features of this property?

This property features: High‑visibility location on Highway 169 provides excellent exposure.; Ample open space is suitable for parking or display.; Easy access for customers and deliveries.