Flex Space With Heated
For Sale
$299,000
2225 Highway 63 N, Stewartville, MN 55976
Renovated office and shop property with a fenced outdoor storage area and direct access near the I-90 interchange.
Property Size3,068 SF
Price / SF$97.46
Days on Market49
Property Features for 2225 Highway 63 N
General Information
Standard status
Active
Size
3,068 SF
Property subtype
Commercial
Zoning
Business/Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Additional Details
Power
200 amps
Taxes and HOA fees
Annual Taxes
$2,136
Building Details
Building Size
3,068 SF
Year Built
1964
Stories
1
Units
1
Listing Agency:
eXp Realty
(612) 240-3570
Listed By:
Steven Eischens
(612) 240-3570
Source:
Juverealestate
Added: Jun 24
Changed: Aug 5
Last Checked: Aug 10 at 12:06PM
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 eXp Realty
Investment Insights
Based on property information with market context.
This 3,068-square-foot flex property combines renovated office space with attached shop capacity. Interior improvements include new flooring, paint, windows, an entry door, kitchen finishes, and bathroom updates. The layout includes three private offices and one bathroom. The attached two-car garage is finished, insulated, and heated, providing additional work or storage space.
A cleared outdoor area behind the building includes breaker-run surfacing, nearly full-surround privacy fencing, and room for commercial vehicle parking or equipment storage. The property is located at 2225 Highway 63 N in High Forest Twp, near the I-90 interchange entering Stewartville and south of Rochester. Business/Commercial zoning supports the property's commercial setting. Electrical infrastructure includes 200-amp service in the basement, plus a subpanel and dedicated welding outlet in the garage.
A cleared outdoor area behind the building includes breaker-run surfacing, nearly full-surround privacy fencing, and room for commercial vehicle parking or equipment storage. The property is located at 2225 Highway 63 N in High Forest Twp, near the I-90 interchange entering Stewartville and south of Rochester. Business/Commercial zoning supports the property's commercial setting. Electrical infrastructure includes 200-amp service in the basement, plus a subpanel and dedicated welding outlet in the garage.
Key Highlights
- 3,068 SF flex property with three private offices and one bathroom
- Attached two‑car garage is finished, insulated, and heated
- 200‑amp electrical service in basement with garage subpanel and dedicated welding outlet
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
$27,520
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
9.20%
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%
$550,400
$550.4K
Cap Rate 7%
$393,143
$393.1K
Cap Rate 9%
$305,778
$305.8K
Market Conditions
NOI Build-Up for 3,068 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
$46.0K $15.00/SF
− Vacancy
−$3.7K −$1.20/SF
EGI
$42.3K $13.80/SF
− OpEx
−$14.8K −$4.83/SF
NOI
$27.5K $8.97/SF
Area
Olmsted County, MN
Vacancy
8.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
35.00%
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%
$550,400
Cap Rate 7%
$393,143
Cap Rate 9%
$305,778
Alternative Uses
Best Use
Office B
$546.6K
$478.3K – $637.7K
NOI $38,261 @ 7.0% cap · market cap 12.80%
Second Best
Flex RnD
$393.1K
$344.0K – $458.7K
NOI $27,520 @ 7.0% cap · market cap 9.20%
Theoretical Best
Office A
$809.3K
$708.2K – $944.2K
NOI $56,652 @ 7.0% cap · market cap 18.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
139
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55976, MN
8,338
Population
3,462
Households
2.4
Avg Household Size
37
Median Age
30%
College-Educated
96%
High-School Grad
91.0 sq mi
ZIP Area
92
Density / Sq Mi
$79,044
Median Household Income
$49,839
Median Earnings
$977
Median Rent
$277,700
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Gleason Catering, LLC — 400 Rochester Medical Dr NW, Stewartville, MN 55976
Frequently Asked Questions
What type of property is this?
Flex space - Renovated office and shop property with a fenced outdoor storage area and direct access near the I-90 interchange.
Where is this flex space located?
The property is located at 2225 Highway 63 N Stewartville, MN.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: 3,068 SF flex property with three private offices and one bathroom; Attached two‑car garage is finished, insulated, and heated; 200‑amp electrical service in basement with garage subpanel and dedicated welding outlet
