Retail Space with
New
For Sale
Contact for pricing
1290 Salem Rd SW, Rochester, MN 55902
Sale includes the business, equipment, and associated assets with drive-thru service available.
Property Size2,037 SF
Price / SF$257.73
Days on Market7
Property Features for 1290 Salem Rd SW
General Information
Standard status
Active
Size
2,037 SF
Property subtype
RETAIL
Additional Details
Business Included
Yes
Drive-Thru
Yes
Listing Agency:
Hamilton Real Estate
(507) 261-4516
Listed By:
George Bayrd
(507) 261-4516
Source:
Moodyscre
Added: Aug 24
Changed: Aug 29
Last Checked: Aug 29 at 5:47PM
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 Hamilton Real Estate
Investment Insights
Based on property information with market context.
This 2,037-square-foot retail space is offered together with the business, equipment, and associated assets. The property also provides drive-thru service, adding an additional customer access option.
Located at 1290 Salem Rd SW in Rochester, the space is near Star Ocean Buffet, TJ Maxx, and H&R Block. The surrounding neighboring businesses provide established retail and service context for the site.
Located at 1290 Salem Rd SW in Rochester, the space is near Star Ocean Buffet, TJ Maxx, and H&R Block. The surrounding neighboring businesses provide established retail and service context for the site.
Key Highlights
- 2,037 SF retail space
- Business, equipment, and assets included in the sale
- Drive‑thru service available
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
$22,928
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
4.37%
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%
$458,560
$458.6K
Cap Rate 7%
$327,543
$327.5K
Cap Rate 9%
$254,756
$254.8K
Market Conditions
NOI Build-Up for 2,037 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
$33.7K $16.56/SF
− Vacancy
−$978 −$0.48/SF
EGI
$32.8K $16.08/SF
− OpEx
−$9.8K −$4.82/SF
NOI
$22.9K $11.26/SF
Area
Rochester, MN
Vacancy
2.90%
Lease Rate
$16.56 /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%
$458,560
Cap Rate 7%
$327,543
Cap Rate 9%
$254,756
Alternative Uses
Best Use
Retail
$327.5K
$286.6K – $382.1K
NOI $22,928 @ 7.0% cap · market cap 4.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$784.6K
$686.5K – $915.3K
NOI $54,919 @ 7.0% cap · market cap 10.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
749
Businesses Nearby
423k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 55%
Shops & Services 20%
Groceries 13%
Dining 10%
Scheels
Apparel
150,831 visits/mo
0.3 miles
Trader Joe's
Groceries
48,336 visits/mo
0.5 miles
Barnes & Noble
Shops & Services
41,011 visits/mo
0.3 miles
Macy's
Apparel
39,701 visits/mo
0.4 miles
Kwik Trip
Shops & Services
36,855 visits/mo
0.2 miles
Demographics for 55902, MN
25,878
Population
11,954
Households
2.2
Avg Household Size
40
Median Age
66%
College-Educated
98%
High-School Grad
41.1 sq mi
ZIP Area
630
Density / Sq Mi
$111,879
Median Household Income
$68,869
Median Earnings
$1,580
Median Rent
$430,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Sale includes the business, equipment, and associated assets with drive-thru service available.
Where is this retail space located?
The property is located at 1290 Salem Rd SW Rochester, MN.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 2,037 SF retail space; Business, equipment, and assets included in the sale; Drive‑thru service available
