Flex Retail-Office Building with
For Sale
Contact for pricing
230 1st Ave E, Shakopee, MN 55379
Commercial building with storefront front access plus rear access and a 667 sq ft warehouse with a drive-in door.
Property Size4,125 SF
Price / SF$169.45
Days on Market252
Property Features for 230 1st Ave E
General Information
Standard status
Active
Size
4,125 SF
Property subtype
RETAIL
Additional Details
Drive-In Doors
1
Listing Agency:
eXp Commercial
(612) 819-8285
Listed By:
Scott Naasz · License #40922534
(612) 819-8285
Source:
Moodyscre
Added: Dec 2, 2025
Changed: Aug 8
Last Checked: Aug 8 at 10:40AM
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 Commercial
Investment Insights
Based on property information with market context.
This approximately 4,125-square-foot commercial building offers a storefront entrance along 1st Avenue East along with a rear access point for added flexibility. The layout supports a range of uses, including retail, office, or creative mixed use concepts. A dedicated 667-square-foot warehouse area is located toward the back and includes 1 drive-in door.
Set in downtown Shakopee, the property is positioned for visibility and accessibility in a thriving business district. The location also provides proximity to a new amphitheater, reported as about 7 minutes away, supporting both foot and vehicle traffic.
The building’s practical configuration combines a front-facing customer entry with rear functionality and an in-place warehouse component, making it well suited for businesses that need both showroom and light storage operations.
Set in downtown Shakopee, the property is positioned for visibility and accessibility in a thriving business district. The location also provides proximity to a new amphitheater, reported as about 7 minutes away, supporting both foot and vehicle traffic.
The building’s practical configuration combines a front-facing customer entry with rear functionality and an in-place warehouse component, making it well suited for businesses that need both showroom and light storage operations.
Key Highlights
- Approximately 4,125 sq ft commercial building with storefront front access on 1st Avenue E
- Front and rear access points for flexible use across retail, office, or creative concepts
- Includes 667 sq ft warehouse space at the rear
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
$50,805
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
7.27%
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%
$1,016,100
$1.0M
Cap Rate 7%
$725,786
$725.8K
Cap Rate 9%
$564,500
$564.5K
Market Conditions
NOI Build-Up for 4,125 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
$78.2K $18.96/SF
− Vacancy
−$5.6K −$1.37/SF
EGI
$72.6K $17.59/SF
− OpEx
−$21.8K −$5.28/SF
NOI
$50.8K $12.32/SF
Area
Scott County, MN
Vacancy
7.20%
Lease Rate
$18.96 /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%
$1,016,100
Cap Rate 7%
$725,786
Cap Rate 9%
$564,500
Alternative Uses
Best Use
Retail
$725.8K
$635.1K – $846.8K
NOI $50,805 @ 7.0% cap · market cap 7.27%
Second Best
Flex RnD
$655.0K
$573.1K – $764.2K
NOI $45,849 @ 7.0% cap · market cap 6.56%
Theoretical Best
Office A
$984.1K
$861.1K – $1.15M
NOI $68,890 @ 7.0% cap · market cap 9.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
574
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55379, MN
48,254
Population
18,028
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
93%
High-School Grad
57.9 sq mi
ZIP Area
833
Density / Sq Mi
$109,824
Median Household Income
$55,390
Median Earnings
$1,540
Median Rent
$366,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial building with storefront front access plus rear access and a 667 sq ft warehouse with a drive-in door.
Where is this flex space located?
The property is located at 230 1st Ave E Shakopee, MN.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Approximately 4,125 sq ft commercial building with storefront front access on 1st Avenue E; Front and rear access points for flexible use across retail, office, or creative concepts; Includes 667 sq ft warehouse space at the rear
