Clear Lake Commercial
For Sale
$468,000
Pending
712 HWY 18 E, Clear Lake, IA 50428
Commercial property in Clear Lake with high traffic location.
Property Size3,879 SF
Lot Size0.45 Acres
Days on Market571
Property Features for 712 HWY 18 E
General Information
Standard status
Pending
Size
3,879 SF
Lot size
0.45 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$6,414
Building Details
Year Built
1951
Listing Agency:
Century 21 Preferred
(641) 420-5635
Listed By:
Roger Flieth · License #***
(641) 420-5635
Source:
Exitrealty
Added: Jan 17, 2025
Changed: Aug 8
Last Checked: Jul 23 at 4:49AM
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 Preferred
Investment Insights
Based on property information with market context.
Located in Clear Lake, this commercial property benefits from a high-traffic location at the corner of Highway 18 East and N. 8th St. The property includes a 3,879-square-foot building situated on a 0.445-acre lot. The building features a 2-bay service shop connected to a 124 x 24 feet sales, office, and showroom space. A generously sized parking lot is also included. The property was most recently used as a recreational rental business, offering canoes, kayaks, bikes, pontoons, and other recreational equipment. It is suitable for retail, office, or auto sales/service purposes. Given its location on the Highway 18 corridor, the lot presents an opportunity for a complete rebuild and new business venture. The property is close to downtown Clear Lake and the lake, with convenient access to Interstate 35 and Avenue of the Saints. It is zoned CH-1 (Commercial Highway Zone), which allows for flexibility in its use.
Key Highlights
- Prime Highway 18 location with high traffic volume.
- Large .445 acre lot, suitable for rebuild or expansion.
- Versatile CH‑1 zoning allows for various commercial uses.
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
Location Intelligence
Trade Area within ½ mile
486
Businesses Nearby
25k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 73%
Home Improvements & Furnishings 17%
Dining 10%
Casey's General Store
Shops & Services
10,230 visits/mo
0.5 miles
Dollar General
Shops & Services
8,302 visits/mo
0.1 miles
Brothers Ace Hardware
Home Improvements & Furnishings
4,274 visits/mo
0.2 miles
SUBWAY
Dining
2,490 visits/mo
0.4 miles
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 Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Commercial property in Clear Lake with high traffic location.
Where is this auto shop 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: Prime Highway 18 location with high traffic volume.; Large .445 acre lot, suitable for rebuild or expansion.; Versatile CH‑1 zoning allows for various commercial uses.
