Industrial Warehouse with Drive-In
For Sale
Contact for pricing
1305 Valley High Dr NW, Rochester, MN 55901
Industrial property offers dock and grade-level loading with direct road access.
Property Size39,020 SF
Lot Size1.21 Acres
Price / SF$101.47
Days on Market406
Property Features for 1305 Valley High Dr NW
General Information
Standard status
Active
Size
39,020 SF
Lot size
1.21 Acres
Property subtype
INDUSTRIAL
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Clear Height
16 ft
Dock-High Doors
2
Drive-In Doors
3
Building Details
Buildings
1
Building Size
39,020 SF
Listing Agency:
CBRE - Minnesota
(952) 924-4665
Listed By:
Brian Pankratz
(952) 924-4665
Source:
Moodyscre
Added: Jul 23, 2025
Changed: Aug 29
Last Checked: Aug 31 at 12:06AM
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 CBRE - Minnesota
Investment Insights
Based on property information with market context.
This industrial property includes approximately 34,492 square feet of available space within a 39,020-square-foot building on approximately 1.21 acres. Loading infrastructure includes two dock doors and three grade-level drive-in doors, while clear heights range from 14 to 16 feet.
The building has direct access to Valley High Dr. NW, with connections to 19th St. NW, Highway 52, and Hwy. 14. The property is approximately 1.8 miles northwest of the Mayo Clinic and Methodist Campus and approximately 11.3 miles north of Rochester International Airport. Its South Rochester setting places the facility within an established industrial area with regional highway access.
The building has direct access to Valley High Dr. NW, with connections to 19th St. NW, Highway 52, and Hwy. 14. The property is approximately 1.8 miles northwest of the Mayo Clinic and Methodist Campus and approximately 11.3 miles north of Rochester International Airport. Its South Rochester setting places the facility within an established industrial area with regional highway access.
Key Highlights
- +/-39,020 sf industrial building on +/-1.21 acres
- +/-34,492 sf of industrial space available
- 2 dock doors and 3 grade‑level drive‑in doors
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
$273,011
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
7.80%
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%
$5,460,220
$5.5M
Cap Rate 7%
$3,900,157
$3.9M
Cap Rate 9%
$3,033,456
$3.0M
Market Conditions
NOI Build-Up for 34,492 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
$331.1K $9.60/SF
− Vacancy
−$9.9K −$0.29/SF
EGI
$321.2K $9.31/SF
− OpEx
−$48.2K −$1.40/SF
NOI
$273.0K $7.92/SF
Area
Rochester, MN
Vacancy
3.00%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
15.00%
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%
$5,460,220
Cap Rate 7%
$3,900,157
Cap Rate 9%
$3,033,456
Alternative Uses
Best Use
Warehouse
$3.90M
$3.41M – $4.55M
NOI $273,011 @ 7.0% cap · market cap 7.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.28M
$11.62M – $15.50M
NOI $929,926 @ 7.0% cap · market cap 26.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
2
Dock-high doors
3
Drive-in doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
573
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55901, MN
58,046
Population
24,852
Households
2.3
Avg Household Size
36
Median Age
50%
College-Educated
94%
High-School Grad
33.1 sq mi
ZIP Area
1,754
Density / Sq Mi
$90,430
Median Household Income
$52,778
Median Earnings
$1,321
Median Rent
$290,000
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Self-Storage at U-Haul — 1641 Civic Center Dr NW, Rochester, MN 55901
- Lock-Away Storage — 2505 N Frontage Rd, Rochester, MN 55901
- A & A Mini Storage — 2301 US-14, Rochester, MN 55901
Frequently Asked Questions
What type of property is this?
Warehouse - Industrial property offers dock and grade-level loading with direct road access.
Where is this warehouse located?
The property is located at 1305 Valley High Dr NW Rochester, MN.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: +/-39,020 sf industrial building on +/-1.21 acres; +/-34,492 sf of industrial space available; 2 dock doors and 3 grade‑level drive‑in doors
