Steel Industrial Buildings with
For Sale
Contact for pricing
1906 3rd Ave SE, Rochester, MN 55904
Steel industrial buildings built in 2000 featuring one completed dock and one unfinished structure.
Property Size14,280 SF
Lot Size2.53 Acres
Price / SF$80
Days on Market419
Property Features for 1906 3rd Ave SE
General Information
Standard status
Active
Size
14,280 SF
Lot size
2.53 Acres
Property subtype
INDUSTRIAL
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Dock-High Doors
2
Building Details
Year Built
2000
Construction
steel building
Listing Agency:
CBRE - Minnesota
(952) 924-4600
Listed By:
Brian Pankratz
(952) 924-4665
Source:
Moodyscre
Added: Jul 22, 2025
Changed: Sep 9
Last Checked: Sep 13 at 10:01AM
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 CBRE - Minnesota
Investment Insights
Based on property information with market context.
Two industrial buildings are offered for sale or lease in South Rochester. The buildings are steel construction and were built in 2000, with one completed dock and an additional unfinished building. The available space is described as suitable for manufacturing, assembly, and storage.
The property provides direct access to 20th St. SE, offering quick connection to S Broadway, Highway 52, and Highway 14. It is also described as approximately 3.1 miles south of the Mayo Clinic Methodist Campus, and about 6.2 miles north of Rochester International Airport.
Parcel identifiers listed include PID 64.12.33.081800 for 401 20th St. SE (2.25 acres) and PID 64.12.33.025970 for 1906 3rd Ave. SE (0.31 acres).
The property provides direct access to 20th St. SE, offering quick connection to S Broadway, Highway 52, and Highway 14. It is also described as approximately 3.1 miles south of the Mayo Clinic Methodist Campus, and about 6.2 miles north of Rochester International Airport.
Parcel identifiers listed include PID 64.12.33.081800 for 401 20th St. SE (2.25 acres) and PID 64.12.33.025970 for 1906 3rd Ave. SE (0.31 acres).
Key Highlights
- ±49,877 SF of steel industrial space on ±2.53 acres across two industrial buildings
- Buildings built in 2000 with 1 completed dock and 1 unfinished structure
- Direct access to 20th St. SE for quick routes to S Broadway, Hwy 52, and Hwy 14
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
$86,815
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
7.60%
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%
$1,736,300
$1.7M
Cap Rate 7%
$1,240,214
$1.2M
Cap Rate 9%
$964,611
$964.6K
Market Conditions
NOI Build-Up for 14,280 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
$128.5K $9.00/SF
− Vacancy
−$4.5K −$0.32/SF
EGI
$124.0K $8.69/SF
− OpEx
−$37.2K −$2.61/SF
NOI
$86.8K $6.08/SF
Area
Rochester, MN
Vacancy
3.50%
Lease Rate
$9.00 /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%
$1,736,300
Cap Rate 7%
$1,240,214
Cap Rate 9%
$964,611
Alternative Uses
Best Use
Warehouse
$1.61M
$1.41M – $1.88M
NOI $113,029 @ 7.0% cap · market cap 9.89%
Second Best
Industrial
$1.24M
$1.09M – $1.45M
NOI $86,815 @ 7.0% cap · market cap 7.60%
Theoretical Best
Office A
$5.50M
$4.81M – $6.42M
NOI $384,998 @ 7.0% cap · market cap 33.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Dock-high doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
519
Businesses Nearby
Explore this area
Business Placement
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Steel industrial buildings built in 2000 featuring one completed dock and one unfinished structure.
Where is this manufacturing property located?
The property is located at 1906 3rd Ave SE Rochester, MN.
What is the asking price?
The asking price for this property is $1,142,400.
What are key features of this property?
This property features: ±49,877 SF of steel industrial space on ±2.53 acres across two industrial buildings; Buildings built in 2000 with 1 completed dock and 1 unfinished structure; Direct access to 20th St. SE for quick routes to S Broadway, Hwy 52, and Hwy 14
