Building Details

Year built 2024

Roof type Metal

Listing Agency: Hilt Real Estate Inc Show Phone

Listed By: Rachel Hoogeveen · License #S58404 Show Phone

Added: Oct 29, 2025 Changed: Sep 23 Last Checked: Sep 28 at 4:06AM

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MLS# 830829

Copyright © 2026 Northwest Iowa Regional Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

Unit #12 is an under-construction warehouse space at 2363 2nd Ave NE in Sioux Center. The unit measures 32' x 50' with 16ft sidewalls and includes a 14ft x 14ft overhead door, electric furnace, and AC. Two side-entry doors support separate access points for an office and shop arrangement or a potential division of the space.

The unit is equipped with keyless entry and high-speed internet/Cat6 cabling. Plumbing is stubbed for a toilet and sink, with water connections provided in two locations. The property sits on 1.55 acres, and the building has a metal roof. Construction is identified as 2024, with the unit designed for personal storage, collecting, retail, or entertainment uses as described in the property information.

Key Highlights

• Unit #12 measures 32' x 50' with 16ft sidewalls
• 14ft x 14ft overhead door
• Electric furnace and AC

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

$11,720

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

7.81%

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%

$234,400 $234.4K

Cap Rate 7%

$167,429 $167.4K

Cap Rate 9%

$130,222 $130.2K

Market Conditions

NOI Build-Up for 1,600 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

$14.4K $9.00/SF

− Vacancy

−$612 −$0.38/SF

EGI

$13.8K $8.62/SF

− OpEx

−$2.1K −$1.29/SF

NOI

$11.7K $7.32/SF

Area

Sioux County, IA

Vacancy

4.25%

Lease Rate

$9.00 /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%

$234,400

Cap Rate 7%

$167,429

Cap Rate 9%

$130,222

Alternative Uses

Best Use

Warehouse

$167.4K

$146.5K – $195.3K (±1% cap)

NOI $11,720 @ 7.0% cap · market cap 7.81%

Second Best

Industrial

$137.9K

$120.7K – $160.9K (±1% cap)

NOI $9,652 @ 7.0% cap · market cap 6.43%

Theoretical Best

Office A

$333.3K

$291.6K – $388.9K (±1% cap)

NOI $23,331 @ 7.0% cap · market cap 15.55%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick HVAC Service Plumbing Service Butcher Kitchen & Bath Showroom Auto Parts Store Pet Grooming Service

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

Location Intelligence

Trade Area within ½ mile

207

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 51250, IA

9,427

Population

3,254

Households

2.9

Avg Household Size

29

Median Age

41%

College-Educated

89%

High-School Grad

73.3 sq mi

ZIP Area

129

Density / Sq Mi

$90,238

Median Household Income

$31,045

Median Earnings

$907

Median Rent

$286,000

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

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

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Frequently Asked Questions

What type of property is this?

Warehouse - New construction offers flexible workspace with climate control, separate entrances, and plumbing provisions.

Where is this warehouse located?

The property is located at 2363 2nd Ave NE Sioux Center, IA.

What is the asking price?

The asking price for this property is $150,000.

What are key features of this property?

This property features: Unit #12 measures 32' x 50' with 16ft sidewalls; 14ft x 14ft overhead door; Electric furnace and AC