Franchise Retail
For Sale
Contact for pricing
1529 12th Street Southeast, Rochester, MN 55904
Established service business with an international franchise affiliation and included furniture, fixtures, and equipment.
Property Size1,365 SF
Price / SF$366.30
Days on Market13
Property Features for 1529 12th Street Southeast
General Information
Standard status
Active
Size
1,365 SF
Property subtype
Retail
Investment Type
Owner/User
Additional Details
Business Included
Yes
Listing Agency:
Hamilton Real Estate Group
(507) 281-1002
Listed By:
Andy Bianco · License #40976637
Source:
Crexi
Added: Jul 30
Changed: Aug 3
Last Checked: Aug 10 at 10:18AM
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 Hamilton Real Estate Group
Investment Insights
Based on property information with market context.
This offering combines a retail space with an established service-based business operating under an international franchise brand. The location has served its market for more than 5 years and includes furniture, fixtures, and equipment maintained for ongoing operations.
Situated at 1529 12th Street Southeast in Rochester, Minnesota, the business has reported 15–20% annual growth over the past three years. Additional business and financial information is available under NDA.
Situated at 1529 12th Street Southeast in Rochester, Minnesota, the business has reported 15–20% annual growth over the past three years. Additional business and financial information is available under NDA.
Key Highlights
- International franchise affiliation with established brand recognition
- Service‑based business operating at the location for more than 5 years
- Reported 15–20% annual growth over the past three years
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
$15,364
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
3.07%
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%
$307,280
$307.3K
Cap Rate 7%
$219,486
$219.5K
Cap Rate 9%
$170,711
$170.7K
Market Conditions
NOI Build-Up for 1,365 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
$22.6K $16.56/SF
− Vacancy
−$656 −$0.48/SF
EGI
$21.9K $16.08/SF
− OpEx
−$6.6K −$4.82/SF
NOI
$15.4K $11.26/SF
Area
Rochester, MN
Vacancy
2.90%
Lease Rate
$16.56 /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%
$307,280
Cap Rate 7%
$219,486
Cap Rate 9%
$170,711
Alternative Uses
Best Use
Retail
$219.5K
$192.1K – $256.1K
NOI $15,364 @ 7.0% cap · market cap 3.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$525.7K
$460.0K – $613.4K
NOI $36,801 @ 7.0% cap · market cap 7.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
368
Businesses Nearby
98k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 42%
Dining 34%
Groceries 23%
Electronics 1%
Kwik Trip
Shops & Services
25,554 visits/mo
0.3 miles
Cub Foods
Groceries
22,573 visits/mo
0.2 miles
Burger King
Dining
10,302 visits/mo
0.3 miles
The UPS Store
Shops & Services
8,212 visits/mo
0.4 miles
SUBWAY
Dining
7,535 visits/mo
0.3 miles
Demographics for 55904, MN
29,813
Population
12,984
Households
2.3
Avg Household Size
35
Median Age
37%
College-Educated
93%
High-School Grad
60.1 sq mi
ZIP Area
496
Density / Sq Mi
$76,434
Median Household Income
$47,250
Median Earnings
$1,253
Median Rent
$237,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Established service business with an international franchise affiliation and included furniture, fixtures, and equipment.
Where is this retail space located?
The property is located at 1529 12th Street Southeast Rochester, MN.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: International franchise affiliation with established brand recognition; Service‑based business operating at the location for more than 5 years; Reported 15–20% annual growth over the past three years
