Building Details

Year built 2016

Building materials Frame

Listing Agency: Realty87 · Coldwell Banker Real Estate c***@cbhrealty.com Show Phone

Listed By: Tami Timm Show Phone

Added: Apr 15 Changed: Aug 19 Last Checked: Aug 29 at 7:06PM

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MLS# 2602671

Copyright © 2026 Cedar Rapids Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This medical office property includes 1,900 square feet on a 0.42-acre parcel at 131 Main Street in Shellsburg, Iowa. Completed in 2016, the building uses frame construction and is identified with Comm zoning.

The property is presented for professional applications including chiropractic care, massage therapy, salon services, daycare, and dental practice. The configuration may also accommodate more than one business or practitioner, subject to applicable requirements. Its Benton County location provides a defined commercial address for an owner-user or tenant.

Key Highlights

• 1,900‑square‑foot medical office property
• 0.42‑acre commercial parcel
• Built in 2016

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

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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?

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Frequently Asked Questions

What type of property is this?

Medical Office Space - Built in 2016, the frame building carries Comm zoning for commercial occupancy.

Where is this medical office space located?

The property is located at 131 Main Street 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: 1,900‑square‑foot medical office property; 0.42‑acre commercial parcel; Built in 2016