Mixed-Use Flex Space with
For Sale
$1,335,000
2401 Hickman Road, Des Moines, IA 50310
Mixed-use commercial space combines warehouse, garage, office, training, breakroom, and bathroom areas.
Property Size15,547 SF
Price / SF$85.87
Days on Market8
Property Features for 2401 Hickman Road
General Information
Standard status
Active
Size
15,547 SF
Property subtype
Warehouse
Additional Details
Conditioned Warehouse
No
Amenities
breakroom
training room
security cameras
Electric
Corner Lot.
81001
Sidewalks. Corner, Asphalt.
Building Details
Year Built
1960
Year Renovated
2024
Listing Agency:
Pennie Carroll & Associates
(515) 490-8025
Listed By:
Pennie Carroll · License #F05964000
(515) 490-8025
Source:
Xome
Added: Aug 10
Changed: Aug 16
Last Checked: Aug 16 at 4:45AM
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 Pennie Carroll & Associates
Investment Insights
Based on property information with market context.
This 15,547-square-foot flex property, built in 1960, combines warehouse and garage areas with office space, a training room, breakroom, and bathrooms. The office area is cooled by an air-conditioning unit, while the warehouse is equipped with heaters but does not have air conditioning. Security cameras remain with the property, and additional tools and equipment may be included when arranged before sale.
The building occupies a corner lot at 2401 Hickman Road in Des Moines, Iowa, with asphalt surfaces and sidewalks. The roof was updated in 2024, and Reliant Exteriors stated a 20-year life expectancy for the roof.
The building occupies a corner lot at 2401 Hickman Road in Des Moines, Iowa, with asphalt surfaces and sidewalks. The roof was updated in 2024, and Reliant Exteriors stated a 20-year life expectancy for the roof.
Key Highlights
- 15,547‑square‑foot mixed‑use flex property
- Warehouse, garage, office, training room, breakroom, and bathrooms
- Office area has air conditioning; warehouse includes heaters
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
$87,116
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
6.53%
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%
$1,742,320
$1.7M
Cap Rate 7%
$1,244,514
$1.2M
Cap Rate 9%
$967,956
$968.0K
Market Conditions
NOI Build-Up for 15,547 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
$145.5K $9.36/SF
− Vacancy
−$11.5K −$0.74/SF
EGI
$134.0K $8.62/SF
− OpEx
−$46.9K −$3.02/SF
NOI
$87.1K $5.60/SF
Area
Des Moines, IA
Vacancy
7.90%
Lease Rate
$9.36 /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%
$1,742,320
Cap Rate 7%
$1,244,514
Cap Rate 9%
$967,956
Alternative Uses
Best Use
Office B
$2.93M
$2.56M – $3.41M
NOI $204,847 @ 7.0% cap · market cap 15.34%
Second Best
Flex RnD
$1.24M
$1.09M – $1.45M
NOI $87,116 @ 7.0% cap · market cap 6.53%
Theoretical Best
Office A
$3.83M
$3.35M – $4.47M
NOI $268,025 @ 7.0% cap · market cap 20.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
575
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50310, IA
30,754
Population
14,162
Households
2.2
Avg Household Size
37
Median Age
36%
College-Educated
86%
High-School Grad
8.0 sq mi
ZIP Area
3,844
Density / Sq Mi
$74,473
Median Household Income
$46,091
Median Earnings
$1,043
Median Rent
$213,800
Median Home Value
Market
Vacancy Rate% for Office in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Mixed-use commercial space combines warehouse, garage, office, training, breakroom, and bathroom areas.
Where is this flex space located?
The property is located at 2401 Hickman Road Des Moines, IA.
What is the asking price?
The asking price for this property is $1,335,000.
What are key features of this property?
This property features: 15,547‑square‑foot mixed‑use flex property; Warehouse, garage, office, training room, breakroom, and bathrooms; Office area has air conditioning; warehouse includes heaters
