Monticello Office Building For
For Sale
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1260 State Hwy 25, Monticello, MN
7,994 SF office building, formerly veterinary and chiropractic clinic.
Property Size7,994 SF
Lot Size0.95 Acres
Price / SF$174.51
Days on Market325
Property Features for 1260 State Hwy 25
General Information
Standard status
Active
Size
7,994 SF
Lot size
0.95 Acres
Property subtype
OFFICE
Listing Agency:
Commercial Realty Solutions LLC
(320) 282-8410
Listed By:
Joseph W Elam
(320) 282-8410
Source:
Moodyscre
Added: Sep 29, 2025
Changed: Aug 15
Last Checked: Aug 18 at 10:26AM
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 Commercial Realty Solutions LLC
Investment Insights
Based on property information with market context.
This 7,994 square foot building features a main floor that formerly housed a veterinary clinic and chiropractic office. The layout includes a reception and waiting area, eight private offices or patient rooms, and a central open-air office space. Two customer restrooms are available, along with a garage equipped with floor drains and a private unfinished bathroom. Additional spaces include storage and maintenance rooms, and a laundry room. The property is equipped with TDS networking and an alarm system. The second floor offers a private employee restroom, a break room and office space, and a private office. An open mezzanine is located at the stairway, and rear steps provide access to the lower level. The second floor also includes TDS networking and an alarm system. This property is located in Monticello, MN.
Key Highlights
- Versatile Main Floor: Features a reception area, waiting room, 8 private offices/patient rooms, and a central open‑air office, suitable for various business types.
- Garage with Floor Drains and Private Bathroom: Offers practical utility and convenience.
- Second Floor Office Space: Includes a break room, private office, and open mezzanine, providing additional workspace and flexibility.
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
$116,155
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
8.33%
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%
$2,323,100
$2.3M
Cap Rate 7%
$1,659,357
$1.7M
Cap Rate 9%
$1,290,611
$1.3M
Market Conditions
NOI Build-Up for 7,994 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
$208.2K $26.04/SF
− Vacancy
−$14.6K −$1.82/SF
EGI
$193.6K $24.22/SF
− OpEx
−$77.4K −$9.69/SF
NOI
$116.2K $14.53/SF
Area
Wright County, MN
Vacancy
7.00%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
40.00%
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%
$2,323,100
Cap Rate 7%
$1,659,357
Cap Rate 9%
$1,290,611
Alternative Uses
Best Use
Healthcare Medical
$1.66M
$1.45M – $1.94M
NOI $116,155 @ 7.0% cap · market cap 8.33%
Second Best
Office B
$1.36M
$1.19M – $1.58M
NOI $94,928 @ 7.0% cap · market cap 6.80%
Theoretical Best
Office A
$1.91M
$1.67M – $2.23M
NOI $133,504 @ 7.0% cap · market cap 9.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
195
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - 7,994 SF office building, formerly veterinary and chiropractic clinic.
Where is this medical office space located?
The property is located at 1260 State Hwy 25 Monticello, MN.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: Versatile Main Floor: Features a reception area, waiting room, **8 private offices/patient rooms**, and a central open‑air office, suitable for various business types.; Garage with Floor Drains and Private Bathroom: Offers practical utility and convenience.; Second Floor Office Space: Includes a break room, private office, and open mezzanine, providing additional workspace and flexibility.
