Updated Office Building in
For Sale
$455,000
500 S Broad St, Mankato, MN 56001
Three-tenant office building in downtown Mankato with recent updates.
Property Size2,345 SF
Price / SF$194.03
Days on Market185
Property Features for 500 S Broad St
General Information
Standard status
Active
Size
2,345 SF
Property subtype
Office - General Office
Building Details
Building Size
2,345 SF
Year Built
1973
Year Renovated
2022
Stories
1
Listing Agency:
Coldwell Banker Commercial Fisher Group
Listed By:
Rosie Brunmeier
(507) 625-0989
Source:
Commercialcafe
Added: Mar 27
Changed: Sep 23
Last Checked: Sep 26 at 4:08AM
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 Coldwell Banker Commercial Fisher Group
Investment Insights
Based on property information with market context.
Located at the corner of South Broad Street and Cherry Street in downtown Mankato, the property is situated in a well-established commercial district, surrounded by professional offices, financial institutions, retail businesses, churches, and nearby residential neighborhoods. The location offers strong visibility and convenient access within Mankato’s central business area. The property at 500 South Broad Street is a three-tenant office and service building totaling 2,345 square feet and is currently fully leased. Constructed in 1973 and renovated in 2022, the property provides stable occupancy and recent building updates, including a new furnace and air conditioning system installed in 2022, and a metal roof installed in 2014. The building is suitable for investors seeking an income-producing asset or a future owner-occupant opportunity. The property benefits from a long-term parking arrangement through a City of Mankato approved leasehold agreement on the adjacent parcel, allowing the owner to retain parking privileges while avoiding the cost of ownership for the additional parcels.
Key Highlights
- Fully leased, income‑producing property.
- Prime downtown Mankato location** with high visibility and convenient access.
- Recent renovations including new furnace and air conditioning (2022).
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
$26,292
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
5.78%
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%
$525,840
$525.8K
Cap Rate 7%
$375,600
$375.6K
Cap Rate 9%
$292,133
$292.1K
Market Conditions
NOI Build-Up for 2,345 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
$46.4K $19.80/SF
− Vacancy
−$11.4K −$4.85/SF
EGI
$35.1K $14.95/SF
− OpEx
−$8.8K −$3.74/SF
NOI
$26.3K $11.21/SF
Area
Blue Earth County, MN
Vacancy
24.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
25.00%
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%
$525,840
Cap Rate 7%
$375,600
Cap Rate 9%
$292,133
Alternative Uses
Best Use
Office B
$375.6K
$328.7K – $438.2K
NOI $26,292 @ 7.0% cap · market cap 5.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$463.5K
$405.5K – $540.7K
NOI $32,443 @ 7.0% cap · market cap 7.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,606
Businesses Nearby
Explore this area
Business Placement
Demographics for 56001, MN
50,729
Population
21,583
Households
2.4
Avg Household Size
30
Median Age
37%
College-Educated
94%
High-School Grad
114.5 sq mi
ZIP Area
443
Density / Sq Mi
$67,224
Median Household Income
$29,122
Median Earnings
$1,088
Median Rent
$263,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Three-tenant office building in downtown Mankato with recent updates.
Where is this office building located?
The property is located at 500 S Broad St Mankato, MN.
What is the asking price?
The asking price for this property is $455,000.
What are key features of this property?
This property features: Fully leased, income‑producing property.; Prime downtown Mankato location** with high visibility and convenient access.; Recent renovations including new furnace and air conditioning (2022).
