Flex Space with Shop and
New
For Sale
$999,900
3327 E Fir Ave, Fergus Falls, MN 56537
Versatile commercial property combines professional offices, attached living quarters, substantial shop space, and paved parking.
Property Size4,200 SF
Price / SF$238.07
Days on Market3
Property Features for 3327 E Fir Ave
General Information
Standard status
Active
Size
4,200 SF
Building Details
Year Built
1978
Listing Agency:
RE/MAX Advantage Plus
(651) 283-8251
Listed By:
Mark P. Abdel
Source:
Chrisfritchteam
Added: Aug 30
Changed: Aug 31
Last Checked: Aug 31 at 7:29PM
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 RE/MAX Advantage Plus
Investment Insights
Based on property information with market context.
This flex property pairs a professional office building with attached living quarters and a large secondary shop structure. The main building measures approximately 4,200 square feet and includes four private offices, a conference room, half bathroom, and approximately 1,200 square feet of living space with three bedrooms, a 3/4 bathroom, laundry, and separate heating and cooling. Interior improvements include updated flooring, trim, doors, finishes, bathrooms, and office areas. Newer siding and a newer roof further support the building’s current presentation.
A 48x80 outbuilding expands the property’s utility with a concrete floor, several offices, and 8 garage stalls, with flexibility to add stalls or create a larger open shop area. The freshly asphalted lot provides approximately 30 parking spaces for employees, visitors, vehicles, trailers, and equipment. The property is located at 3327 E Fir Ave in Fergus Falls, Minnesota, and business use is subject to city verification.
A 48x80 outbuilding expands the property’s utility with a concrete floor, several offices, and 8 garage stalls, with flexibility to add stalls or create a larger open shop area. The freshly asphalted lot provides approximately 30 parking spaces for employees, visitors, vehicles, trailers, and equipment. The property is located at 3327 E Fir Ave in Fergus Falls, Minnesota, and business use is subject to city verification.
Key Highlights
- Approximately 4,200 SF main commercial building with four private offices and a conference room
- Approximately 1,200 SF of attached living quarters with three bedrooms, 3/4 bathroom, and laundry
- 48x80 outbuilding with concrete floor, several offices, and 8 garage stalls
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
$44,982
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
4.50%
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%
$899,640
$899.6K
Cap Rate 7%
$642,600
$642.6K
Cap Rate 9%
$499,800
$499.8K
Market Conditions
NOI Build-Up for 4,200 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
$70.6K $16.80/SF
− Vacancy
−$10.6K −$2.52/SF
EGI
$60.0K $14.28/SF
− OpEx
−$15.0K −$3.57/SF
NOI
$45.0K $10.71/SF
Area
Otter Tail County, MN
Vacancy
15.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
25.00%
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%
$899,640
Cap Rate 7%
$642,600
Cap Rate 9%
$499,800
Alternative Uses
Best Use
Office B
$642.6K
$562.3K – $749.7K
NOI $44,982 @ 7.0% cap · market cap 4.50%
Second Best
Warehouse
$562.8K
$492.4K – $656.6K
NOI $39,394 @ 7.0% cap · market cap 3.94%
Theoretical Best
Office A
$912.4K
$798.3K – $1.06M
NOI $63,867 @ 7.0% cap · market cap 6.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
21
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 56537, MN
19,230
Population
9,498
Households
2
Avg Household Size
44
Median Age
30%
College-Educated
96%
High-School Grad
283.4 sq mi
ZIP Area
68
Density / Sq Mi
$62,279
Median Household Income
$40,272
Median Earnings
$840
Median Rent
$223,000
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 - Versatile commercial property combines professional offices, attached living quarters, substantial shop space, and paved parking.
Where is this flex space located?
The property is located at 3327 E Fir Ave Fergus Falls, MN.
What is the asking price?
The asking price for this property is $999,900.
What are key features of this property?
This property features: Approximately 4,200 SF main commercial building with four private offices and a conference room; Approximately 1,200 SF of attached living quarters with three bedrooms, 3/4 bathroom, and laundry; 48x80 outbuilding with concrete floor, several offices, and 8 garage stalls
