Building Details

Year Built 2016

Stories 1

Listing Agency: Realty87

Listed By: Mike Esker · License #IA B41939000 Show Phone

Source: Crexi

Added: May 1 Changed: Aug 22 Last Checked: Aug 21 at 7:00PM

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Investment Insights

Based on property information with market context.

This move-in ready commercial property is well built and currently configured for health and wellness-related uses. Public remarks indicate flexibility for multiple service concepts, including chiropractic, massage therapy, salon, daycare, and dentist office.

The property is offered for sale at 131 Main Street East in Shellsburg, IA 52332.

If you are looking for a turnkey space to start operations, this site offers a practical foundation for medical office and spa-style services, with the potential for multiple professions to operate in combination, as described in the remarks.

Key Highlights

• Built in 2016 commercial property
• Move‑in ready for use by a range of health and wellness businesses

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

$14,159

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

3.78%

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%

$283,180 $283.2K

Cap Rate 7%

$202,271 $202.3K

Cap Rate 9%

$157,322 $157.3K

Market Conditions

NOI Build-Up for 1,900 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

$26.2K $13.80/SF

− Vacancy

−$2.6K −$1.38/SF

EGI

$23.6K $12.42/SF

− OpEx

−$9.4K −$4.97/SF

NOI

$14.2K $7.45/SF

Area

Benton County, IA

Vacancy

10.00%

Lease Rate

$13.80 /SF/Yr

Expense Ratio

40.00%

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%

$283,180

Cap Rate 7%

$202,271

Cap Rate 9%

$157,322

Alternative Uses

Best Use

Healthcare Medical

$202.3K

$177.0K – $236.0K (±1% cap)

NOI $14,159 @ 7.0% cap · market cap 3.78%

Second Best

Office B

$130.4K

$114.1K – $152.1K (±1% cap)

NOI $9,125 @ 7.0% cap · market cap 2.43%

Theoretical Best

Specialty Retail

$275.0K

$240.6K – $320.8K (±1% cap)

NOI $19,249 @ 7.0% cap · market cap 5.13%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Elizabeth Meyer A.R.N.P. Medical Clinic BRIAN A LINDO Pediatrician Julie J Hoffmnn Physician Cedar Valley Primary ... Medical Clinic Melanie Dahlhauser, ARNP Physician

Suggested Use

Top Pick Auto Repair Shop Building Supply Plumbing Service Garden Center Grocery & Convenience Store (Bike/Boat/Book/etc) 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.

Location Intelligence

Trade Area within ½ mile

93

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 52332, IA

1,995

Population

789

Households

2.5

Avg Household Size

45

Median Age

15%

College-Educated

97%

High-School Grad

39.6 sq mi

ZIP Area

50

Density / Sq Mi

$90,781

Median Household Income

$52,292

Median Earnings

$775

Median Rent

$227,800

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

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this medical office space 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?

Medical Office Space - Well-built, move-in ready commercial property suited for a range of health and wellness services.

Where is this medical office space located?

The property is located at 131 Main Street East Shellsburg, IA.

What is the asking price?

The asking price for this property is $375,000.

What are key features of this property?

This property features: Built in 2016 commercial property; Move‑in ready for use by a range of health and wellness businesses