Flex Space with Dock-High
For Sale
Contact for pricing
3401 Spring St NE, Minneapolis, MN 55413
Flex space zoned I-2 with fully sprinkled warehouse, skylights, and 18-foot clear height.
Property Size34,848 SF
Price / SF$125
Days on Market882
Property Features for 3401 Spring St NE
General Information
Standard status
Active
Size
34,848 SF
Property subtype
INDUSTRIAL
Listing Agency:
CBRE - Minnesota
(952) 924-4600
Listed By:
Matt A Oelschlager
(612) 532-4747
Source:
Moodyscre
Added: Apr 16, 2024
Changed: Sep 11
Last Checked: Sep 14 at 11:12AM
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.
Flex space totaling 34,848 SF includes 28,675 SF of warehouse space plus 2,688 SF of main level office and 3,488 SF of mezzanine office. The two-story office features an open bullpen with perimeter private offices, and there is a breakroom with four restrooms across the main floor and mezzanine. Warehouse mezzanine space is available at 1,800 SF (not included in the total).
The warehouse is designed for practical loading and throughput with three dock-high doors (8’ x 12’, 2 levelers, bumpers, and awning) and one drive-in door (12’ x 14’). Interior clear height is 18’, with a fully sprinkled system and skylights throughout. Power is listed as 400 Amp / 480 Volt / 3 Phase, with column spacing of 31.75’ x 27.5’.
Built in 1968 and zoned I-2 (medium industrial district), the property is also described as offering excess green space that may support building expansion, parking lot expansion, or outdoor storage. Comcast Fiber is noted.
The property is at 3401 Spring St NE in Minneapolis, Minnesota.
The warehouse is designed for practical loading and throughput with three dock-high doors (8’ x 12’, 2 levelers, bumpers, and awning) and one drive-in door (12’ x 14’). Interior clear height is 18’, with a fully sprinkled system and skylights throughout. Power is listed as 400 Amp / 480 Volt / 3 Phase, with column spacing of 31.75’ x 27.5’.
Built in 1968 and zoned I-2 (medium industrial district), the property is also described as offering excess green space that may support building expansion, parking lot expansion, or outdoor storage. Comcast Fiber is noted.
The property is at 3401 Spring St NE in Minneapolis, Minnesota.
Key Highlights
- Total size 34,848 SF with 28,675 SF warehouse plus main and mezzanine office space
- Warehouse mezzanine 1,800 SF not included in total SF
- Three dock‑high doors (8’ x 12’) with 2 levelers, bumpers, and awning plus one 12’ x 14’ drive‑in door
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
$370,046
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
8.50%
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%
$7,400,920
$7.4M
Cap Rate 7%
$5,286,371
$5.3M
Cap Rate 9%
$4,111,622
$4.1M
Market Conditions
NOI Build-Up for 34,848 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
$547.8K $15.72/SF
− Vacancy
−$19.2K −$0.55/SF
EGI
$528.6K $15.17/SF
− OpEx
−$158.6K −$4.55/SF
NOI
$370.0K $10.62/SF
Area
Minneapolis, MN
Vacancy
3.50%
Lease Rate
$15.72 /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%
$7,400,920
Cap Rate 7%
$5,286,371
Cap Rate 9%
$4,111,622
Alternative Uses
Best Use
Warehouse
$7.25M
$6.35M – $8.46M
NOI $507,653 @ 7.0% cap · market cap 11.65%
Second Best
Office B
$6.22M
$5.44M – $7.26M
NOI $435,484 @ 7.0% cap · market cap 10.00%
Theoretical Best
Office A
$8.31M
$7.27M – $9.70M
NOI $581,981 @ 7.0% cap · market cap 13.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,015
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55413, MN
13,914
Population
8,080
Households
1.7
Avg Household Size
34
Median Age
58%
College-Educated
95%
High-School Grad
3.1 sq mi
ZIP Area
4,488
Density / Sq Mi
$84,252
Median Household Income
$57,091
Median Earnings
$1,497
Median Rent
$354,200
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Flex space - Flex space zoned I-2 with fully sprinkled warehouse, skylights, and 18-foot clear height.
Where is this flex space located?
The property is located at 3401 Spring St NE Minneapolis, MN.
What is the asking price?
The asking price for this property is $4,356,000.
What are key features of this property?
This property features: Total size 34,848 SF with 28,675 SF warehouse plus main and mezzanine office space; Warehouse mezzanine 1,800 SF not included in total SF; Three dock‑high doors (8’ x 12’) with 2 levelers, bumpers, and awning plus one 12’ x 14’ drive‑in door
