Multi-Tenant Flex
For Sale
Contact for pricing
1215 N 7th St, Lake City, MN 55041
Office, conference, and warehouse areas support varied commercial configurations.
Property Size18,000 SF
Price / SF$69.44
Days on Market1343
Property Features for 1215 N 7th St
General Information
Standard status
Active
Size
18,000 SF
Property subtype
FLEX_R_AND_D
Listing Agency:
Realty Growth, Inc
(507) 951-7130
Listed By:
Bucky Beeman
(507) 951-7130
Source:
Moodyscre
Added: Dec 28, 2022
Changed: Aug 31
Last Checked: Aug 31 at 6:06PM
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 Realty Growth, Inc
Investment Insights
Based on property information with market context.
The 18,000-square-foot flex property combines professional office areas, conference space, and warehouse space within a multi-tenant layout. Separate utility metering and independent heating serve each unit, supporting distinct occupancy and operating arrangements. Shared restrooms and a break area are also provided, with access points distributed throughout the building.
Located on North 7th Street in Lake City, the property includes on-site parking for tenants and visitors. Units are available in varying sizes, allowing the building to accommodate different space requirements and configurations. The layout supports both owner occupancy and separate tenant spaces, with leasing options available for portions of the property.
Located on North 7th Street in Lake City, the property includes on-site parking for tenants and visitors. Units are available in varying sizes, allowing the building to accommodate different space requirements and configurations. The layout supports both owner occupancy and separate tenant spaces, with leasing options available for portions of the property.
Key Highlights
- 18,000‑square‑foot flex property with office, conference, and warehouse areas
- Separate utility metering and independent heating for each unit
- Multi‑tenant layout with units available in varying sizes
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
$107,730
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
8.62%
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%
$2,154,600
$2.2M
Cap Rate 7%
$1,539,000
$1.5M
Cap Rate 9%
$1,197,000
$1.2M
Market Conditions
NOI Build-Up for 18,000 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
$162.0K $9.00/SF
− Vacancy
−$8.1K −$0.45/SF
EGI
$153.9K $8.55/SF
− OpEx
−$46.2K −$2.56/SF
NOI
$107.7K $5.98/SF
Area
Wabasha County, MN
Vacancy
5.00%
Lease Rate
$9.00 /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%
$2,154,600
Cap Rate 7%
$1,539,000
Cap Rate 9%
$1,197,000
Alternative Uses
Best Use
Office B
$3.79M
$3.32M – $4.42M
NOI $265,356 @ 7.0% cap · market cap 21.23%
Second Best
Flex RnD
$3.12M
$2.73M – $3.63M
NOI $218,055 @ 7.0% cap · market cap 17.44%
Theoretical Best
Office A
$5.29M
$4.63M – $6.17M
NOI $370,138 @ 7.0% cap · market cap 29.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
179
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55041, MN
7,800
Population
3,825
Households
2
Avg Household Size
49
Median Age
31%
College-Educated
96%
High-School Grad
143.9 sq mi
ZIP Area
54
Density / Sq Mi
$83,673
Median Household Income
$47,845
Median Earnings
$992
Median Rent
$265,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Office, conference, and warehouse areas support varied commercial configurations.
Where is this flex space located?
The property is located at 1215 N 7th St Lake City, MN.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 18,000‑square‑foot flex property with office, conference, and warehouse areas; Separate utility metering and independent heating for each unit; Multi‑tenant layout with units available in varying sizes
