Rochester Retail Center For
For Sale
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1217 Marion Rd SE, Rochester, MN 55904
8,892 SF retail center in Rochester, Minnesota for sale.
Property Size8,892 SF
Lot Size0.93 Acres
Price / SF$281.49
Days on Market170
Property Features for 1217 Marion Rd SE
General Information
Standard status
Active
Size
8,892 SF
Lot size
0.93 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
Net
Investment Type
Core+
Net Operating Income
$187,708
Building Details
Year Built
2013
Tenancy
Multi
Listing Agency:
JLL - Minneapolis, Minnesota
Listed By:
Matt Hazelton · License #MN 40449423
Source:
Crexi
Added: Mar 3
Changed: Aug 8
Last Checked: Jul 19 at 2:27AM
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 JLL - Minneapolis, Minnesota
Investment Insights
Based on property information with market context.
The Marion Retail Center, constructed in 2013, is a single-story retail building with 8,892 square feet of gross leasable area, situated on 0.93 acres. The property is located at 1217 Marion Rd SE in Rochester, Minnesota. The retail center is 100% occupied by six local and national tenants: Golden Wok, Beauty Mark, GLO Nails, Metro by T-Mobile, Tortilleria La Mayzteca, and Toppers Pizza. The weighted average lease term is 2.8 years, and several leases include 3% annual rent escalations. Tenants have been in place for an average of 7.5 years. The center is positioned at the intersection of US Highway 14 and Marion Rd SE, with a combined traffic volume of over 39,000 vehicles per day. The property is located along Rochester's primary east-west retail corridor, near a big box center anchored by Cub Foods and Planet Fitness. The surrounding area benefits from the Mayo Clinic and the $6.5 billion Destination Medical Center development, with a 3-mile average household income of nearly $116,000.
Key Highlights
- Located at the HIGH‑TRAFFIC intersection of US Highway 14 & Marion Rd SE, with over 39,000 combined vehicles per day.
- 100% occupied with a diverse mix of six local and national tenants.
- Benefits from proximity to a big box center anchored by Cub Foods and Planet Fitness.
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
$100,087
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
4.00%
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%
$2,001,740
$2.0M
Cap Rate 7%
$1,429,814
$1.4M
Cap Rate 9%
$1,112,078
$1.1M
Market Conditions
NOI Build-Up for 8,892 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
$147.3K $16.56/SF
− Vacancy
−$4.3K −$0.48/SF
EGI
$143.0K $16.08/SF
− OpEx
−$42.9K −$4.82/SF
NOI
$100.1K $11.26/SF
Area
Rochester, MN
Vacancy
2.90%
Lease Rate
$16.56 /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%
$2,001,740
Cap Rate 7%
$1,429,814
Cap Rate 9%
$1,112,078
Alternative Uses
Best Use
Retail
$1.43M
$1.25M – $1.67M
NOI $100,087 @ 7.0% cap · market cap 4.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.42M
$3.00M – $4.00M
NOI $239,734 @ 7.0% cap · market cap 9.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
315
Businesses Nearby
98k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 42%
Dining 34%
Groceries 23%
Electronics 1%
Kwik Trip
Shops & Services
25,554 visits/mo
0.1 miles
Cub Foods
Groceries
22,573 visits/mo
0.1 miles
Burger King
Dining
10,302 visits/mo
0.1 miles
The UPS Store
Shops & Services
8,212 visits/mo
0.1 miles
SUBWAY
Dining
7,535 visits/mo
0.1 miles
Demographics for 55904, MN
29,813
Population
12,984
Households
2.3
Avg Household Size
35
Median Age
37%
College-Educated
93%
High-School Grad
60.1 sq mi
ZIP Area
496
Density / Sq Mi
$76,434
Median Household Income
$47,250
Median Earnings
$1,253
Median Rent
$237,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - 8,892 SF retail center in Rochester, Minnesota for sale.
Where is this shopping center located?
The property is located at 1217 Marion Rd SE Rochester, MN.
What is the asking price?
The asking price for this property is $2,503,000.
What are key features of this property?
This property features: Located at the HIGH‑TRAFFIC intersection of US Highway 14 & Marion Rd SE, with over 39,000 combined vehicles per day.; 100% occupied with a diverse mix of six local and national tenants.; Benefits from proximity to a big box center anchored by Cub Foods and Planet Fitness.
