Multi-Tenant Retail Salon
For Sale
$525,000
Pending
222 N Central Ave, Duluth, MN 55807
This storefront retail space includes a 9-chair hair salon setup, a shake shop, and 15 on-site parking spaces.
Property Size2,172 SF
Days on Market286
Property Features for 222 N Central Ave
General Information
Standard status
Pending
Size
2,172 SF
Total Parking Spaces
15
Taxes and HOA fees
Annual Taxes
$8,162
Listing Agency:
RE/MAX Results
(218) 722-2811
Listed By:
Trish Kroening
(218) 393-5900
Source:
Exprealty
Added: Nov 25, 2025
Changed: Sep 5
Last Checked: Sep 6 at 3:15PM
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 RE/MAX Results
Investment Insights
Based on property information with market context.
This commercial storefront property is currently configured for multiple uses, including a vibrant 9-chair hair salon with five shampoo stations, plus an additional nail room. Interior improvements also include a mechanical mop sink area with storage, an updated 1/2 bath, and a spacious entry with display area. A storage room with an office is included as well, supporting back-of-house needs. The second business operates as a shake shop, with menu expansion underway.
The property offers ample parking with 15 spaces and is located next to Super One, supporting convenient customer access.
Overall, the layout is designed around salon-style back-of-house support and retail-facing presentation, with room for at least two distinct operational areas within the same storefront.
The property offers ample parking with 15 spaces and is located next to Super One, supporting convenient customer access.
Overall, the layout is designed around salon-style back-of-house support and retail-facing presentation, with room for at least two distinct operational areas within the same storefront.
Key Highlights
- Commercial storefront currently set up as a 9‑chair hair salon with 5 shampoo stations
- Includes a separate nail room sized for one tech
- Salon area features a mechanical mop sink area with storage and an updated 1/2 bath
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
$20,525
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
3.91%
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%
$410,500
$410.5K
Cap Rate 7%
$293,214
$293.2K
Cap Rate 9%
$228,056
$228.1K
Market Conditions
NOI Build-Up for 2,172 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
$32.6K $15.00/SF
− Vacancy
−$3.3K −$1.50/SF
EGI
$29.3K $13.50/SF
− OpEx
−$8.8K −$4.05/SF
NOI
$20.5K $9.45/SF
Area
St. Louis County, MN
Vacancy
10.00%
Lease Rate
$15.00 /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%
$410,500
Cap Rate 7%
$293,214
Cap Rate 9%
$228,056
Alternative Uses
Best Use
Specialty Retail
$842.6K
$737.2K – $983.0K
NOI $58,979 @ 7.0% cap · market cap 11.23%
Second Best
Retail
$293.2K
$256.6K – $342.1K
NOI $20,525 @ 7.0% cap · market cap 3.91%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
587
Businesses Nearby
Explore this area
Business Placement
Demographics for 55807, MN
9,674
Population
4,572
Households
2.1
Avg Household Size
39
Median Age
29%
College-Educated
95%
High-School Grad
5.8 sq mi
ZIP Area
1,668
Density / Sq Mi
$63,670
Median Household Income
$36,246
Median Earnings
$797
Median Rent
$164,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - This storefront retail space includes a 9-chair hair salon setup, a shake shop, and 15 on-site parking spaces.
Where is this retail space located?
The property is located at 222 N Central Ave Duluth, MN.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Commercial storefront currently set up as a 9‑chair hair salon with 5 shampoo stations; Includes a separate nail room sized for one tech; Salon area features a mechanical mop sink area with storage and an updated 1/2 bath
