Well-Equipped Industrial Garage
For Sale
$279,900
16765 198th Ave #56, Big Lake, MN 55309
Secure, gated flex/industrial unit with in-floor heat, a drive-in door, and in-place plumbing for an in-unit bathroom.
Property Size1,500 SF
Price / SF$186.60
Days on Market48
Property Features for 16765 198th Ave #56
General Information
Standard status
Active
Size
1,500 SF
Property subtype
Industrial
Warehouse & Industrial
Drive-In Doors
1
Heavy Power
Yes
Additional Details
Highway Access
Yes
Building Details
Year Built
2024
Listing Agency:
eXp Commercial
(612) 819-8285
Listed By:
Scott Naasz · License #MN #40922534
(612) 819-8285
Source:
7s
Added: Jun 25
Changed: Jul 10
Last Checked: Aug 11 at 5:32AM
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 eXp Commercial
Investment Insights
Based on property information with market context.
This well-maintained garage condo is offered as a highly functional 1,500 SF (25x60) unit in a secure, gated industrial/business park in Big Lake. The space includes in-floor heat with floor drains, water hookup, and plumbing in place for an in-unit bathroom, supporting light work and practical daily use. A 12’ x 16’ drive-in overhead door provides convenient access for vehicles or equipment, and the unit is equipped with 3-phase power. Recently upgraded with professionally painted floors, the interior is positioned for immediate occupancy.
The property is located within a community setting with gated entry and remote access. Highway 10 and Highway 25 provide convenient routes to the area. HOA dues are listed at $185/month and cover common area maintenance, including grass, snow, garbage, insurance, security cameras, and common areas. The community also has a clubhouse available for reservation, featuring a bar and lounge area for meetings, events, or gatherings.
This unit is a strong fit for contractors, small businesses, storage users, or hobbyists seeking a clean, controlled-access space with essential utilities already in place. The combination of drive-up convenience, in-floor heat, and plumbing readiness can help streamline operations for users who need more than standard dry storage.
The property is located within a community setting with gated entry and remote access. Highway 10 and Highway 25 provide convenient routes to the area. HOA dues are listed at $185/month and cover common area maintenance, including grass, snow, garbage, insurance, security cameras, and common areas. The community also has a clubhouse available for reservation, featuring a bar and lounge area for meetings, events, or gatherings.
This unit is a strong fit for contractors, small businesses, storage users, or hobbyists seeking a clean, controlled-access space with essential utilities already in place. The combination of drive-up convenience, in-floor heat, and plumbing readiness can help streamline operations for users who need more than standard dry storage.
Key Highlights
- 1,500 SF (25x60) secure, gated garage condo in a Big Lake industrial/business park
- In‑floor heat plus floor drains for a functional workspace and clean operation
- 12’x16’ drive‑in overhead door with convenient drive‑up access
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
$20,340
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
7.27%
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%
$406,800
$406.8K
Cap Rate 7%
$290,571
$290.6K
Cap Rate 9%
$226,000
$226.0K
Market Conditions
NOI Build-Up for 1,500 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
$32.9K $21.96/SF
− Vacancy
−$1.6K −$1.10/SF
EGI
$31.3K $20.86/SF
− OpEx
−$11.0K −$7.30/SF
NOI
$20.3K $13.56/SF
Area
Sherburne County, MN
Vacancy
5.00%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
35.00%
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%
$406,800
Cap Rate 7%
$290,571
Cap Rate 9%
$226,000
Alternative Uses
Best Use
Flex RnD
$290.6K
$254.3K – $339.0K
NOI $20,340 @ 7.0% cap · market cap 7.27%
Second Best
Warehouse
$282.7K
$247.3K – $329.8K
NOI $19,787 @ 7.0% cap · market cap 7.07%
Theoretical Best
Office A
$357.9K
$313.1K – $417.5K
NOI $25,051 @ 7.0% cap · market cap 8.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Drive-in doors
Yes
Heavy power
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
62
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55309, MN
20,387
Population
7,541
Households
2.7
Avg Household Size
35
Median Age
31%
College-Educated
95%
High-School Grad
62.3 sq mi
ZIP Area
327
Density / Sq Mi
$118,387
Median Household Income
$56,262
Median Earnings
$1,463
Median Rent
$335,500
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Secure, gated flex/industrial unit with in-floor heat, a drive-in door, and in-place plumbing for an in-unit bathroom.
Where is this flex space located?
The property is located at 16765 198th Ave #56 Big Lake, MN.
What is the asking price?
The asking price for this property is $279,900.
What are key features of this property?
This property features: 1,500 SF (25x60) secure, gated garage condo in a Big Lake industrial/business park; In‑floor heat plus floor drains for a functional workspace and clean operation; 12’x16’ drive‑in overhead door with convenient drive‑up access
