Building Details

Buildings 1

Building Size 11,600 SF

Listing Agency: Equity Real Estate Group

Listed By: Steve Davis, CCIM · License #B66573000 Show Phone

Source: Moodyscre

Added: Jul 24, 2024 Changed: Aug 15 Last Checked: Sep 14 at 9:39AM

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Investment Insights

Based on property information with market context.

This well-maintained office building offers existing office buildout and updated interior improvements, including MEP and finishes such as carpet, walls, and ceiling tiles. The current layout includes private offices, small meeting spaces, larger conference rooms, a generous reception area, restrooms, a breakroom, and open workspaces. The space is also configured in a way that could support division into multiple units, with some plumbing and metering already in place and multiple egress doors.

The property is positioned adjacent to the city park and provides strong visibility and access. It also includes a garage area with an overhead door. An adjacent 2-acre parcel is available for purchase in conjunction with the building; that parcel includes a former drive-up building with an awning and flat grade, with zoning noted for potential uses.

Additional site details include that the existing structure on the adjacent parcel has a restroom and canopy in good condition if the new owner wants to utilize the improvement.

Key Highlights

• 11,600 SF commercial building in Asbury, IA with existing office buildout and well‑maintained interior finishes
• Office layout includes private offices, small meeting spaces, larger conference rooms, generous reception area, restrooms, breakroom, and open workspaces
• MEP updates included, with carpet, walls, and ceiling tiles reported to be in great shape

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

$55,709

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

2.93%

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%

$1,114,180 $1.1M

Cap Rate 7%

$795,843 $795.8K

Cap Rate 9%

$618,989 $619.0K

Market Conditions

NOI Build-Up for 11,600 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

$97.4K $8.40/SF

− Vacancy

−$23.2K −$2.00/SF

EGI

$74.3K $6.40/SF

− OpEx

−$18.6K −$1.60/SF

NOI

$55.7K $4.80/SF

Area

Dubuque County, IA

Vacancy

23.77%

Lease Rate

$8.40 /SF/Yr

Expense Ratio

25.00%

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%

$1,114,180

Cap Rate 7%

$795,843

Cap Rate 9%

$618,989

Alternative Uses

Best Use

Office B

$795.8K

$696.4K – $928.5K (±1% cap)

NOI $55,709 @ 7.0% cap · market cap 2.93%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$2.26M

$1.98M – $2.63M (±1% cap)

NOI $158,024 @ 7.0% cap · market cap 8.32%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Office Units

Suggested Use

Top Pick Law Firm Dental Office Pharmacy Electrical Service Restaurant Auto Parts Store

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

1

Office units

Location Intelligence

Trade Area within ½ mile

260

Businesses Nearby

Explore this area Business Placement

Demographics for 52002, IA

17,177

Population

7,535

Households

2.3

Avg Household Size

41

Median Age

40%

College-Educated

97%

High-School Grad

29.2 sq mi

ZIP Area

588

Density / Sq Mi

$88,060

Median Household Income

$50,161

Median Earnings

$1,051

Median Rent

$273,400

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this office units located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office units - Well-maintained office building with private offices, meeting and conference rooms, reception, restrooms, breakroom, and a garage with overhead door.

Where is this office units located?

The property is located at 5865 Saratoga Rd Asbury, IA.

What is the asking price?

The asking price for this property is $1,900,000.

What are key features of this property?

This property features: 11,600 SF commercial building in Asbury, IA with existing office buildout and well‑maintained interior finishes; Office layout includes private offices, small meeting spaces, larger conference rooms, generous reception area, restrooms, breakroom, and open workspaces; MEP updates included, with carpet, walls, and ceiling tiles reported to be in great shape