Automotive Shop with Car
For Sale
$315,000
1501 6th Ave, Des Moines, IA 50314
Fully functioning automotive shop in high-traffic location for sale.
Property Size1,894 SF
Price / SF$166.31
Days on Market288
Property Features for 1501 6th Ave
General Information
Standard status
Active
Size
1,894 SF
Taxes and HOA fees
Annual Taxes
$1,232
Listing Agency:
RE/MAX Concepts
(515) 276-2872
Listed By:
Matt Cole · License #S65168000
(515) 276-2872
Source:
Exprealty
Added: Nov 10, 2025
Changed: Aug 25
Last Checked: Aug 25 at 8:53AM
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 Concepts
Investment Insights
Based on property information with market context.
This is a fully functioning automotive shop situated in a location with high daily traffic. The building has a car lift that conveys with the property. The property has a size of 1894 square feet. The location could potentially be converted into a different business. The property is located in Des Moines, Iowa.
Key Highlights
- Optimal location with high daily traffic for high exposure.
- Fully functioning automotive shop.
- Car lift included with the property.
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
$18,395
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
5.84%
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%
$367,900
$367.9K
Cap Rate 7%
$262,786
$262.8K
Cap Rate 9%
$204,389
$204.4K
Market Conditions
NOI Build-Up for 1,894 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
$28.4K $15.00/SF
− Vacancy
−$2.1K −$1.13/SF
EGI
$26.3K $13.88/SF
− OpEx
−$7.9K −$4.16/SF
NOI
$18.4K $9.71/SF
Area
Des Moines, IA
Vacancy
7.50%
Lease Rate
$15.00 /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%
$367,900
Cap Rate 7%
$262,786
Cap Rate 9%
$204,389
Alternative Uses
Best Use
Retail
$262.8K
$229.9K – $306.6K
NOI $18,395 @ 7.0% cap · market cap 5.84%
Second Best
Industrial
$110.9K
$97.1K – $129.4K
NOI $7,766 @ 7.0% cap · market cap 2.47%
Theoretical Best
Office A
$466.5K
$408.2K – $544.2K
NOI $32,652 @ 7.0% cap · market cap 10.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,248
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50314, IA
11,764
Population
4,780
Households
2.5
Avg Household Size
31
Median Age
15%
College-Educated
72%
High-School Grad
2.5 sq mi
ZIP Area
4,706
Density / Sq Mi
$38,511
Median Household Income
$30,314
Median Earnings
$977
Median Rent
$146,700
Median Home Value
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- T H Truck Auto Repair — 1151 15th St, Des Moines, IA 50314
- Scotty's Body Shop — 59 University Ave, Des Moines, IA 50314
- Auto Glass Now — 89 University Ave, Des Moines, IA 50314
- Elite Express Towing — 1217 Forest Ave, Des Moines, IA 50314
- B & T Auto Center — 1323 2nd Ave, Des Moines, IA 50314
Frequently Asked Questions
What type of property is this?
Auto shop - Fully functioning automotive shop in high-traffic location for sale.
Where is this auto shop located?
The property is located at 1501 6th Ave Des Moines, IA.
What is the asking price?
The asking price for this property is $315,000.
What are key features of this property?
This property features: Optimal location with high daily traffic for high exposure.; Fully functioning automotive shop.; Car lift included with the property.
