Industrial Property Near Major
For Sale
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1395 Commerce Drive, Mendota Heights, MN 55120
Industrial property near I-494, Highway 55, and Highway 13, with access to regional amenities.
Property Size53,101 SF
Price / SF$122.41
Days on Market15
Property Features for 1395 Commerce Drive
General Information
Standard status
Active
Size
53,101 SF
Total Parking Spaces
139
Property subtype
Industrial
Investment Type
Owner/User
Additional Details
Highway Access
Yes
Building Details
Year Built
1992
Tenancy
Single
Listing Agency:
Essence Real Estate
Listed By:
Jeffrey Nordness · License #MN 40161488
Source:
Crexi
Added: Jul 28
Changed: Aug 10
Last Checked: Aug 10 at 3:34PM
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 Essence Real Estate
Investment Insights
Based on property information with market context.
This industrial property was built in 1992 and carries a reported property size of 53,101. The asset is located at 1395 Commerce Drive in Mendota Heights, Minnesota.
Regional access includes proximity to I-494, Highway 55, and Highway 13. Nearby amenities and destinations identified for the property include MSP International Airport, Mall of America, St. Paul, and Minneapolis.
Regional access includes proximity to I-494, Highway 55, and Highway 13. Nearby amenities and destinations identified for the property include MSP International Airport, Mall of America, St. Paul, and Minneapolis.
Key Highlights
- Reported property size of 53,101
- Built in 1992
- Located at 1395 Commerce Drive, Mendota Heights, MN 55120
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
$576,874
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
8.87%
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%
$11,537,480
$11.5M
Cap Rate 7%
$8,241,057
$8.2M
Cap Rate 9%
$6,409,711
$6.4M
Market Conditions
NOI Build-Up for 53,101 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
$860.2K $16.20/SF
− Vacancy
−$36.1K −$0.68/SF
EGI
$824.1K $15.52/SF
− OpEx
−$247.2K −$4.66/SF
NOI
$576.9K $10.86/SF
Area
Dakota County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$11,537,480
Cap Rate 7%
$8,241,057
Cap Rate 9%
$6,409,711
Alternative Uses
Best Use
Industrial
$8.24M
$7.21M – $9.61M
NOI $576,874 @ 7.0% cap · market cap 8.87%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$13.07M
$11.43M – $15.25M
NOI $914,718 @ 7.0% cap · market cap 14.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
253
Businesses Nearby
Explore this area
Business Placement
Demographics for 55120, MN
4,752
Population
2,119
Households
2.2
Avg Household Size
45
Median Age
57%
College-Educated
97%
High-School Grad
5.4 sq mi
ZIP Area
880
Density / Sq Mi
$111,900
Median Household Income
$56,452
Median Earnings
$1,543
Median Rent
$484,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Industrial property near I-494, Highway 55, and Highway 13, with access to regional amenities.
Where is this industrial property located?
The property is located at 1395 Commerce Drive Mendota Heights, MN.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: Reported property size of 53,101; Built in 1992; Located at 1395 Commerce Drive, Mendota Heights, MN 55120
