Building Details

Building Size 2,400 SF

Year Built 1983

Buildings 2

Units 2

Listing Agency: EXIT Realty Home/Land Properties p**@exithomeland.com Show Phone

Listed By: Pamela Yegge · License #B63442000 Show Phone

Source: Sweeneyrealestate

Added: May 15, 2025 Changed: Aug 29 Last Checked: Aug 29 at 1:47PM

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Investment Insights

Based on property information with market context.

This flex-space property combines a 572-square-foot heated and insulated office with a 2,400-square-foot pole building. The office is finished with drywall and includes a bathroom, while the adjacent building offers a concrete floor and full electric service. The configuration provides dedicated workspace alongside substantial covered area for storage, workshop activity, light manufacturing, or business expansion.

The property encompasses just under 2 acres within the city limits of Lakota, Iowa, with the improvements dating to 1983. Its combination of office accommodation, utility service, and open building area supports a range of practical commercial operations.

Key Highlights

• 572 sq ft heated and insulated office with drywall finish and bathroom
• 2,400 sq ft adjacent pole building with concrete floor
• Full electric service in the pole building

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

$10,767

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

8.61%

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%

$215,340 $215.3K

Cap Rate 7%

$153,814 $153.8K

Cap Rate 9%

$119,633 $119.6K

Market Conditions

NOI Build-Up for 2,400 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

$17.6K $7.32/SF

− Vacancy

−$1.0K −$0.42/SF

EGI

$16.6K $6.90/SF

− OpEx

−$5.8K −$2.42/SF

NOI

$10.8K $4.49/SF

Area

Kossuth County, IA

Vacancy

5.71%

Lease Rate

$7.32 /SF/Yr

Expense Ratio

35.00%

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%

$215,340

Cap Rate 7%

$153,814

Cap Rate 9%

$119,633

Alternative Uses

Best Use

Warehouse

$1.79M

$1.57M – $2.09M (±1% cap)

NOI $125,302 @ 7.0% cap · market cap 100.24%

Second Best

Industrial

$1.66M

$1.45M – $1.93M (±1% cap)

NOI $115,919 @ 7.0% cap · market cap 92.74%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Building Supply Auto Repair Shop Carpet & Flooring Store Big Box & Wholesale Store Cafe & Coffee Shop Restaurant

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

40

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 50451, IA

492

Population

273

Households

1.8

Avg Household Size

45

Median Age

14%

College-Educated

96%

High-School Grad

61.4 sq mi

ZIP Area

8

Density / Sq Mi

$72,500

Median Household Income

$25,682

Median Earnings

$850

Median Rent

$53,400

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 flex 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?

Flex space - Heated office and adjoining electric pole building support storage, workshop, and light manufacturing operations.

Where is this flex space located?

The property is located at 410 3Rd Street Lakota, IA.

What is the asking price?

The asking price for this property is $125,000.

What are key features of this property?

This property features: 572 sq ft heated and insulated office with drywall finish and bathroom; 2,400 sq ft adjacent pole building with concrete floor; Full electric service in the pole building