Building Details

Year Built 1984

Units 1

Building Size 8,976 SF

Tenancy Multi

Listing Agency: LOAM Commercial Real Estate

Listed By: Jay Christenson · License #MN 8272275 Show Phone

Source: Crexi

Added: Aug 3 Changed: Sep 25 Last Checked: Sep 26 at 7:32AM

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Investment Insights

Based on property information with market context.

This 8,976-square-foot industrial property contains multiple tenant spaces and was constructed in 1984. Additional space is expected to become available, creating flexibility for an owner-user while retaining existing tenancy within the building.

The property is located at 1300 Second Ave NW in Stewartville, Minnesota, a short drive from Rochester. Its position along Second Avenue NW provides a visible setting for the industrial asset.

Key Highlights

• 8,976 s/f industrial property
• Multiple tenants currently in place
• Additional space coming 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

$52,703

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

4.39%

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%

$1,054,060 $1.1M

Cap Rate 7%

$752,900 $752.9K

Cap Rate 9%

$585,589 $585.6K

Market Conditions

NOI Build-Up for 8,976 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

$80.8K $9.00/SF

− Vacancy

−$5.5K −$0.61/SF

EGI

$75.3K $8.39/SF

− OpEx

−$22.6K −$2.52/SF

NOI

$52.7K $5.87/SF

Area

Olmsted County, MN

Vacancy

6.80%

Lease Rate

$9.00 /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%

$1,054,060

Cap Rate 7%

$752,900

Cap Rate 9%

$585,589

Alternative Uses

Best Use

Industrial

$752.9K

$658.8K – $878.4K (±1% cap)

NOI $52,703 @ 7.0% cap · market cap 4.39%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.37M

$2.07M – $2.76M (±1% cap)

NOI $165,746 @ 7.0% cap · market cap 13.81%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Industrial properties

Suggested Use

Top Pick Real Estate Agency Law Firm Restaurant Building Supply HVAC Service Hair Salon

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

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

190

Businesses Nearby

Explore this area Business Placement

Demographics for 55976, MN

8,338

Population

3,462

Households

2.4

Avg Household Size

37

Median Age

30%

College-Educated

96%

High-School Grad

91.0 sq mi

ZIP Area

92

Density / Sq Mi

$79,044

Median Household Income

$49,839

Median Earnings

$977

Median Rent

$277,700

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 industrial properties located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Industrial property - Industrial building with established tenants and additional space becoming available for an owner-user.

Where is this industrial property located?

The property is located at 1300 SECOND AVE NW Stewartville, MN.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: 8,976 s/f industrial property; Multiple tenants currently in place; Additional space coming available