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: Jan 5, 2024 Changed: Sep 9 Last Checked: Sep 13 at 11:06AM

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MLS# 823336

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.

The south addition at 2363 2nd Ave NE includes 11 warehouse units currently under construction. Each unit measures 24' x 50' with 16-foot sidewalls and a 14' x 14' overhead door. Planned features include an electric furnace, air conditioning, keyless entry, and high-speed internet with Cat6 wiring. Units are also stubbed for a toilet and sink, supporting further interior customization.

The property sits on 1.55 acres in Sioux Center, Iowa, and was established in 2024. A metal roof and forced-air heating are part of the building improvements. The units are positioned for personal storage, collector space, retail, or entertainment uses, with upgrades available based on individual requirements.

Key Highlights

• 11 warehouse units under construction in the south addition
• Each unit measures 24' x 50' with 16ft sidewalls
• 14' x 14' overhead door at each unit

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

$8,790

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

7.04%

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%

$175,800 $175.8K

Cap Rate 7%

$125,571 $125.6K

Cap Rate 9%

$97,667 $97.7K

Market Conditions

NOI Build-Up for 1,200 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

$10.8K $9.00/SF

− Vacancy

−$459 −$0.38/SF

EGI

$10.3K $8.62/SF

− OpEx

−$1.6K −$1.29/SF

NOI

$8.8K $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%

$175,800

Cap Rate 7%

$125,571

Cap Rate 9%

$97,667

Alternative Uses

Best Use

Warehouse

$125.6K

$109.9K – $146.5K (±1% cap)

NOI $8,790 @ 7.0% cap · market cap 7.04%

Second Best

Industrial

$103.4K

$90.5K – $120.7K (±1% cap)

NOI $7,239 @ 7.0% cap · market cap 5.80%

Theoretical Best

Office A

$250.0K

$218.7K – $291.6K (±1% cap)

NOI $17,498 @ 7.0% cap · market cap 14.01%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Real Estate Agency Law Firm Dental Office Parking Lot & Garage Auto Parts Store Plumbing 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 - Under-construction warehouse units provide flexible space for storage, collecting, retail, or entertainment uses.

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 $124,900.

What are key features of this property?

This property features: 11 warehouse units under construction in the south addition; Each unit measures 24' x 50' with 16ft sidewalls; 14' x 14' overhead door at each unit