Office Warehouse with Clear
For Sale
Contact for pricing
21475 Heath Ave, Lakeville, MN 55044
Office and warehouse building with two drive-in doors, one dock door, and 12'–16' clear height.
Property Size12,800 SF
Lot Size1.52 Acres
Price / SF$148.44
Days on Market159
Property Features for 21475 Heath Ave
General Information
Standard status
Active
Size
12,800 SF
Lot size
1.52 Acres
Property subtype
INDUSTRIAL
Zoning
I2
Warehouse & Industrial
Clear Height
16 ft
Dock-High Doors
1
Drive-In Doors
2
Building Details
Year Built
1979
Year Renovated
2011
Listing Agency:
Cerron Commercial Properties
(952) 469-9444
Listed By:
Rocky Ranch
(952) 583-6135
Source:
Moodyscre
Added: Mar 30
Changed: Aug 10
Last Checked: Jul 21 at 3:05AM
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 Cerron Commercial Properties
Investment Insights
Based on property information with market context.
This approximately 12,800 SF office warehouse building includes approximately 2,000 SF of office space and approximately 10,800 SF of warehouse area. The warehouse is supported by two drive-in doors (12’x12’ and 8’x10’) plus one dock door, with clear height ranging from 12’ to 16’. The property was built in 1979 and includes a 6,000 SF addition completed in 2011.
Located in Lakeville’s Airlake Industrial Park, the site sits on approximately 1.52 acres. The property is zoned I2 – General Industrial and is identified by Dakota County PID: 22-11101-03-160.
The offering includes a lease option. No other tenant or unit configuration details are provided in the available information.
Located in Lakeville’s Airlake Industrial Park, the site sits on approximately 1.52 acres. The property is zoned I2 – General Industrial and is identified by Dakota County PID: 22-11101-03-160.
The offering includes a lease option. No other tenant or unit configuration details are provided in the available information.
Key Highlights
- Approx. 12,800 SF office/warehouse building on 1.52 acres in Lakeville’s Airlake Industrial Park
- Includes approx. 2,000 SF office and approx. 10,800 SF warehouse space
- Two drive‑in doors (12’x12’ and 8’x10’) plus one dock door
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
$168,853
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
8.89%
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%
$3,377,060
$3.4M
Cap Rate 7%
$2,412,186
$2.4M
Cap Rate 9%
$1,876,144
$1.9M
Market Conditions
NOI Build-Up for 12,800 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
$207.4K $16.20/SF
− Vacancy
−$8.7K −$0.68/SF
EGI
$198.7K $15.52/SF
− OpEx
−$29.8K −$2.33/SF
NOI
$168.9K $13.19/SF
Area
Dakota County, MN
Vacancy
4.20%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
15.00%
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%
$3,377,060
Cap Rate 7%
$2,412,186
Cap Rate 9%
$1,876,144
Alternative Uses
Best Use
Warehouse
$2.41M
$2.11M – $2.81M
NOI $168,853 @ 7.0% cap · market cap 8.89%
Second Best
Office B
$2.27M
$1.98M – $2.65M
NOI $158,776 @ 7.0% cap · market cap 8.36%
Theoretical Best
Healthcare Medical
$3.15M
$2.76M – $3.67M
NOI $220,493 @ 7.0% cap · market cap 11.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
1
Dock-high doors
2
Drive-in doors
Location Intelligence
Trade Area within ½ mile
387
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55044, MN
60,446
Population
22,519
Households
2.7
Avg Household Size
37
Median Age
54%
College-Educated
97%
High-School Grad
65.3 sq mi
ZIP Area
926
Density / Sq Mi
$140,612
Median Household Income
$69,991
Median Earnings
$1,730
Median Rent
$464,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Office and warehouse building with two drive-in doors, one dock door, and 12'–16' clear height.
Where is this flex space located?
The property is located at 21475 Heath Ave Lakeville, MN.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Approx. 12,800 SF office/warehouse building on 1.52 acres in Lakeville’s Airlake Industrial Park; Includes approx. 2,000 SF office and approx. 10,800 SF warehouse space; Two drive‑in doors (12’x12’ and 8’x10’) plus one dock door
