Building Details

Tenancy Multi

Listing Agency: CBRE - Minnesota Show Phone

Listed By: Jonathan Juris Show Phone

Source: Moodyscre

Added: Mar 1, 2024 Changed: Sep 10 Last Checked: Sep 12 at 9:57AM

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Investment Insights

Based on property information with market context.

This flex warehouse property totals 12,295 SF with a 2,000 SF office component and 10,295 SF of warehouse/service space. The warehouse offers 16’ clear height and includes trench drains and flam traps. Heating is provided through a mix of hanging forced air and radiant systems, with a furnace in the office areas. The office features an open bullpen area, five private offices, storage room, and a unisex break room and restroom.

The facility is currently configured as a two-tenant building and is served by five 12’ x 14’ grade level doors. The 4.61-acre site is fully fenced and secure with manual sliding gates, and outdoor and parking areas are finished with class 5 gravel.

Additional on-site functionality includes an active fuel pump with monitoring software.

Key Highlights

• 12,295 SF freestanding flex warehouse with 2,000 SF office and 10,295 SF warehouse
• Warehouse includes five 12’ x 14’ grade level doors and 16’ clear in shop/service/warehouse area
• 4.61‑acre site with two parcels (1.24 acres and 3.37 acres), fully fenced and secured with manual sliding gates

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

$162,191

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

4.33%

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%

$3,243,820 $3.2M

Cap Rate 7%

$2,317,014 $2.3M

Cap Rate 9%

$1,802,122 $1.8M

Market Conditions

NOI Build-Up for 12,295 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

$199.2K $16.20/SF

− Vacancy

−$8.4K −$0.68/SF

EGI

$190.8K $15.52/SF

− OpEx

−$28.6K −$2.33/SF

NOI

$162.2K $13.19/SF

Area

Hennepin 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%

$3,243,820

Cap Rate 7%

$2,317,014

Cap Rate 9%

$1,802,122

Alternative Uses

Best Use

Warehouse

$2.32M

$2.03M – $2.70M (±1% cap)

NOI $162,191 @ 7.0% cap · market cap 4.33%

Second Best

Industrial

$1.91M

$1.67M – $2.23M (±1% cap)

NOI $133,569 @ 7.0% cap · market cap 3.56%

Theoretical Best

Office A

$2.93M

$2.57M – $3.42M (±1% cap)

NOI $205,333 @ 7.0% cap · market cap 5.48%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Law Firm Garden Center Parking Lot & Garage Electrical Service Bakery (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

16 ft

Clear height

5

Drive-in doors

Multi-tenant

Tenancy

Yes

Fenced yard

Location Intelligence

Trade Area within ½ mile

558

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 55374, MN

15,851

Population

5,496

Households

2.9

Avg Household Size

38

Median Age

53%

College-Educated

98%

High-School Grad

34.2 sq mi

ZIP Area

463

Density / Sq Mi

$152,239

Median Household Income

$75,382

Median Earnings

$1,535

Median Rent

$438,000

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Flex space - Freestanding flex warehouse includes 2,000 SF of office and 10,295 SF of warehouse with five grade level doors.

Where is this flex space located?

The property is located at 21601 John Deere Ln Rogers, MN.

What is the asking price?

The asking price for this property is $3,750,000.

What are key features of this property?

This property features: 12,295 SF freestanding flex warehouse with 2,000 SF office and 10,295 SF warehouse; Warehouse includes five 12’ x 14’ grade level doors and 16’ clear in shop/service/warehouse area; 4.61‑acre site with two parcels (1.24 acres and 3.37 acres), fully fenced and secured with manual sliding gates