Class A Stand-Alone Office
For Sale
Contact for pricing
Pending
2200 2nd St SW, Rochester, MN 55902
Class A office building built in 2011 with flexible space for private offices, conference rooms, and open work areas.
Property Size11,992 SF
Days on Market372
Property Features for 2200 2nd St SW
General Information
Standard status
Pending
Size
11,992 SF
Class
Class A
Property subtype
OFFICE
Additional Details
Public Transit
Yes
Building Details
Year Built
2011
Buildings
1
Listing Agency:
Realty Growth, Inc
(507) 951-1147
Listed By:
Matt Gove
(507) 951-1147
Source:
Moodyscre
Added: Aug 5, 2025
Changed: Aug 8
Last Checked: Aug 10 at 9:35AM
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 Realty Growth, Inc
Investment Insights
Based on property information with market context.
This stand-alone, Class A office building was built in 2011 and is described as meticulously maintained. The property provides nearly 12,000 square feet of office space with a flexible layout that includes private offices, conference rooms, and open work areas. Natural light is highlighted as part of the interior environment, supporting everyday productivity and client-facing functions.
The building is located along Rochester’s Southwest 2nd Street corridor. It is described as just blocks from Mayo Clinic’s Saint Marys Campus and positioned along the city’s new rapid transit bus route, supporting visibility and commuter accessibility.
The combination of private offices, conference rooms, and open work areas can support a range of professional office users who need both collaboration space and dedicated work areas within a single facility.
The building is located along Rochester’s Southwest 2nd Street corridor. It is described as just blocks from Mayo Clinic’s Saint Marys Campus and positioned along the city’s new rapid transit bus route, supporting visibility and commuter accessibility.
The combination of private offices, conference rooms, and open work areas can support a range of professional office users who need both collaboration space and dedicated work areas within a single facility.
Key Highlights
- Class A, stand‑alone office building
- Built in 2011
- Nearly 12,000 square feet of office space
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
$220,983
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
6.70%
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%
$4,419,660
$4.4M
Cap Rate 7%
$3,156,900
$3.2M
Cap Rate 9%
$2,455,367
$2.5M
Market Conditions
NOI Build-Up for 11,992 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
$323.8K $27.00/SF
− Vacancy
−$29.1K −$2.43/SF
EGI
$294.6K $24.57/SF
− OpEx
−$73.7K −$6.14/SF
NOI
$221.0K $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%
$4,419,660
Cap Rate 7%
$3,156,900
Cap Rate 9%
$2,455,367
Alternative Uses
Best Use
Office B
$3.16M
$2.76M – $3.68M
NOI $220,983 @ 7.0% cap · market cap 6.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.62M
$4.04M – $5.39M
NOI $323,312 @ 7.0% cap · market cap 9.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
327
Businesses Nearby
Explore this area
Business Placement
Demographics for 55902, MN
25,878
Population
11,954
Households
2.2
Avg Household Size
40
Median Age
66%
College-Educated
98%
High-School Grad
41.1 sq mi
ZIP Area
630
Density / Sq Mi
$111,879
Median Household Income
$68,869
Median Earnings
$1,580
Median Rent
$430,100
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?
Office building - Class A office building built in 2011 with flexible space for private offices, conference rooms, and open work areas.
Where is this office building located?
The property is located at 2200 2nd St SW Rochester, MN.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: Class A, stand‑alone office building; Built in 2011; Nearly 12,000 square feet of office space
