Building Details

Building Size 9,880 SF

Listing Agency: Agency North Real Estate

Listed By: Wendy Hendricks · License #40438191 Show Phone

Source: Moodyscre

Added: Sep 17 Changed: Sep 26 Last Checked: Sep 26 at 3:27PM

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Investment Insights

Based on property information with market context.

This 9,880-square-foot flex property combines approximately 1,150 square feet of conditioned office space with 8,730 square feet of heated warehouse area. The warehouse has concrete floors and is divided into three sections; two include bathrooms. The layout can be configured as two or three suites. Building features include mostly 13-foot ceilings, 12-foot overhead doors, 3-phase power, security cameras, natural gas, and a private well and septic system. Recent work includes replacement overhead and service doors and overhead unit heaters.

The property occupies 1.70 acres with a private parking lot and additional area for outdoor storage or future expansion.

Key Highlights

• 9,880 square feet on 1.70 acres
• Approximately 1,150 square feet of conditioned office space and 8,730 square feet of heated warehouse
• Warehouse arranged in three areas, with bathrooms in two; layout can be divided into two or three suites

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

$66,128

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

8.32%

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%

$1,322,560 $1.3M

Cap Rate 7%

$944,686 $944.7K

Cap Rate 9%

$734,756 $734.8K

Market Conditions

NOI Build-Up for 9,880 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

$98.4K $9.96/SF

− Vacancy

−$3.9K −$0.40/SF

EGI

$94.5K $9.56/SF

− OpEx

−$28.3K −$2.87/SF

NOI

$66.1K $6.69/SF

Area

Stearns County, MN

Vacancy

4.00%

Lease Rate

$9.96 /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%

$1,322,560

Cap Rate 7%

$944,686

Cap Rate 9%

$734,756

Alternative Uses

Best Use

Flex RnD

$1.70M

$1.48M – $1.98M (±1% cap)

NOI $118,659 @ 7.0% cap · market cap 14.93%

Second Best

Warehouse

$1.15M

$1.00M – $1.34M (±1% cap)

NOI $80,298 @ 7.0% cap · market cap 10.10%

Theoretical Best

Office A

$2.16M

$1.89M – $2.52M (±1% cap)

NOI $151,427 @ 7.0% cap · market cap 19.05%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Birchwood Electric, Security ... General Contractor WoodCo Dynamic, LLC Storage Facility Johnson Machine Engineering Engineering Consultant

Suggested Use

Top Pick HVAC Service Auto Repair Shop Big Box & Wholesale Store Kitchen & Bath Showroom Auto Parts Store Storage Facility

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

13 ft

Clear height

Yes

Highway access

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

23

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56320, MN

7,985

Population

3,630

Households

2.2

Avg Household Size

44

Median Age

32%

College-Educated

93%

High-School Grad

51.1 sq mi

ZIP Area

156

Density / Sq Mi

$90,346

Median Household Income

$45,947

Median Earnings

$1,283

Median Rent

$312,000

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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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?

Frequently Asked Questions

What type of property is this?

Flex space - A private parking area and flexible suite configuration support single- or multi-occupant use.

Where is this flex space located?

The property is located at 12384 234th St Cold Spring, MN.

What is the asking price?

The asking price for this property is $795,000.

What are key features of this property?

This property features: 9,880 square feet on 1.70 acres; Approximately 1,150 square feet of conditioned office space and 8,730 square feet of heated warehouse; Warehouse arranged in three areas, with bathrooms in two; layout can be divided into two or three suites