Flex Space with Highway
New
For Sale
$5,995,000
1820 14th St NW, Rochester, MN 55901
Flexible floor plans, common areas, and convenient route access support a range of commercial operations.
Property Size25,220 SF
Days on Market4
Property Features for 1820 14th St NW
General Information
Standard status
Active
Size
25,220 SF
Elevators
No
Property subtype
Industrial
Site & Location
Highway Access
Yes
Road Access
No
Public Transit
No
Utilities to Site
No
Additional Details
Furnished
No
Opportunity Zone
No
Sprinkler System
No
Amenities
Ample parking
Sophisticated common areas for collaboration
Building Details
Building Size
25,220 SF
Year Built
2016
Owner Occupied
No
Abandoned
No
Listing Agency:
(507) 259-6556
Listed By:
AJ Hawkins · License #MN #40439870
Source:
Northrockre
Added: Aug 8
Changed: Aug 10
Last Checked: Aug 11 at 6:15AM
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 AJ Hawkins
Investment Insights
Based on property information with market context.
Built in 2016, this flex-space property at 1820 14th St NW combines contemporary design with adaptable floor plans and shared common areas. The building also offers parking and amenities suited to businesses seeking a flexible commercial setting.
The property is positioned near the HWY-52 and HWY-14 Interchange in Rochester, providing access to major transportation routes. Its exposure along HWY-52 is supported by reported traffic of 93,000 AADT, giving the building a prominent highway-facing presence. The configuration includes collaborative common areas and flexible interior planning for commercial users.
The property is positioned near the HWY-52 and HWY-14 Interchange in Rochester, providing access to major transportation routes. Its exposure along HWY-52 is supported by reported traffic of 93,000 AADT, giving the building a prominent highway-facing presence. The configuration includes collaborative common areas and flexible interior planning for commercial users.
Key Highlights
- 2016 construction
- Located near the HWY‑52 and HWY‑14 Interchange
- HWY‑52 exposure with 93,000 AADT
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
$464,742
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
7.75%
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%
$9,294,840
$9.3M
Cap Rate 7%
$6,639,171
$6.6M
Cap Rate 9%
$5,163,800
$5.2M
Market Conditions
NOI Build-Up for 25,220 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
$680.9K $27.00/SF
− Vacancy
−$61.3K −$2.43/SF
EGI
$619.7K $24.57/SF
− OpEx
−$154.9K −$6.14/SF
NOI
$464.7K $18.43/SF
Area
Rochester, MN
Vacancy
9.00%
Lease Rate
$27.00 /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%
$9,294,840
Cap Rate 7%
$6,639,171
Cap Rate 9%
$5,163,800
Alternative Uses
Best Use
Office B
$6.64M
$5.81M – $7.75M
NOI $464,742 @ 7.0% cap · market cap 7.75%
Second Best
Flex RnD
$2.95M
$2.58M – $3.44M
NOI $206,650 @ 7.0% cap · market cap 3.45%
Theoretical Best
Office A
$9.71M
$8.50M – $11.33M
NOI $679,947 @ 7.0% cap · market cap 11.34%
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
726
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55901, MN
58,046
Population
24,852
Households
2.3
Avg Household Size
36
Median Age
50%
College-Educated
94%
High-School Grad
33.1 sq mi
ZIP Area
1,754
Density / Sq Mi
$90,430
Median Household Income
$52,778
Median Earnings
$1,321
Median Rent
$290,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible floor plans, common areas, and convenient route access support a range of commercial operations.
Where is this flex space located?
The property is located at 1820 14th St NW Rochester, MN.
What is the asking price?
The asking price for this property is $5,995,000.
What are key features of this property?
This property features: 2016 construction; Located near the HWY‑52 and HWY‑14 Interchange; HWY‑52 exposure with 93,000 AADT
