Flex Space with Overhead
For Sale
$339,000
2049 Hwy 86, Milford, IA 51351
COMMERCIAL, Milford, IA
Property Size2,304 SF
Price / SF$147.14
Days on Market152
Property Features for 2049 Hwy 86
General Information
Property type
Commercial Sale
Property subtype
Other
Parking features
Driveway
Subdivision
Dickinson
Standard status
Active
APN
06-35-177-034
Taxes and HOA fees
Tax Year
2024
Tax Description
UNIT 3-12 STONES THROW STORAGE CONDOMINIUM & UNIT 3-13 STONES THROW STORAGE CONDOMINIUM
Tax Annual Amount
1868
Legal Description
UNIT 3-12 STONES THROW STORAGE CONDOMINIUM & UNIT 3-13 STONES THROW STORAGE CONDOMINIUM
Utilities
Sewer type
Public Sewer
Heating system
Forced Air
Water source
Public
Amenities
loft
full bathroom
forced-air natural gas furnace with exposed ductwork
epoxy floors
14' x 14' overhead doors
16' sidewalls
Building Details
Year built
2022
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
Jensen Real Estate
(712) 332-8081
Listed By:
Michael Jensen · License #7586
(712) 320-7245
Added: Apr 1
Changed: Aug 19
Last Checked: Aug 30 at 7:06PM
MLS# 260208
Copyright © 2026 Iowa Great Lakes Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2022 flex-space storage condo measures 48' x 48' and is configured as a double unit. The interior includes a loft, full bathroom, forced-air natural gas heating with exposed ductwork, and epoxy flooring. Two 14' x 14' overhead doors serve the workspace, while 16' sidewalls provide additional vertical clearance.
The property fronts Highway 86 in Milford and has metal siding and a metal roof. Public water and public sewer serve the building, and driveway parking is included. The current configuration supports use as a detail shop or general commercial workspace, subject to applicable requirements.
The property fronts Highway 86 in Milford and has metal siding and a metal roof. Public water and public sewer serve the building, and driveway parking is included. The current configuration supports use as a detail shop or general commercial workspace, subject to applicable requirements.
Key Highlights
- 48' x 48' double‑unit storage condo
- Highway 86 frontage in Milford
- Two 14' x 14' overhead doors
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
$29,784
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
8.79%
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%
$595,680
$595.7K
Cap Rate 7%
$425,486
$425.5K
Cap Rate 9%
$330,933
$330.9K
Market Conditions
NOI Build-Up for 2,304 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
$43.7K $18.96/SF
− Vacancy
−$1.1K −$0.49/SF
EGI
$42.5K $18.47/SF
− OpEx
−$12.8K −$5.54/SF
NOI
$29.8K $12.93/SF
Area
Dickinson County, IA
Vacancy
2.60%
Lease Rate
$18.96 /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%
$595,680
Cap Rate 7%
$425,486
Cap Rate 9%
$330,933
Alternative Uses
Best Use
Retail
$425.5K
$372.3K – $496.4K
NOI $29,784 @ 7.0% cap · market cap 8.79%
Second Best
Flex RnD
$279.3K
$244.4K – $325.9K
NOI $19,554 @ 7.0% cap · market cap 5.77%
Theoretical Best
Office A
$504.0K
$441.0K – $588.0K
NOI $35,279 @ 7.0% cap · market cap 10.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
12
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 51351, IA
4,844
Population
3,104
Households
1.6
Avg Household Size
45
Median Age
31%
College-Educated
97%
High-School Grad
108.0 sq mi
ZIP Area
45
Density / Sq Mi
$67,628
Median Household Income
$39,913
Median Earnings
$904
Median Rent
$256,100
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?
Flex space - Commercial condo includes a loft, full bathroom, forced-air heat, and epoxy flooring.
Where is this flex space located?
The property is located at 2049 Hwy 86 Milford, IA.
What is the asking price?
The asking price for this property is $339,000.
What are key features of this property?
This property features: 48' x 48' double‑unit storage condo; Highway 86 frontage in Milford; Two 14' x 14' overhead doors
