Highway Retail and Flex
For Sale
Contact for pricing
2401 Hwy 13 W, Burnsville, MN 55337
Freestanding flex/warehouse building with large storefront and monument signage on Highway 13, fully sprinklered and zoned B-4.
Property Size15,352 SF
Price / SF$127.02
Days on Market117
Property Features for 2401 Hwy 13 W
General Information
Standard status
Active
Size
15,352 SF
Property subtype
INDUSTRIAL
Zoning
B-4
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Sprinkler System
Yes
Listing Agency:
Newmark
(612) 430-9950
Listed By:
Jim Damiani
(612) 270-6318
Source:
Moodyscre
Added: May 19
Changed: Sep 7
Last Checked: Sep 12 at 11:37AM
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 Newmark
Investment Insights
Based on property information with market context.
This freestanding flex/warehouse property includes a large storefront with monument signage and is fully sprinklered. The building size is 15,352 square feet and was built between 1975 and 1985. Additional mezzanine space exists but is not included in the available square footage shown. Recent roof improvements were completed in 2021, 2023, and 2026.
Located on Highway 13 with frontage visibility across from Super Menards. The zoning is B-4 Highway Commercial, which supports a range of uses including auto repair and service, detailing, retail, office, and warehouse/manufacturing.
The layout and zoning make this building well suited to accommodate multiple tenancy scenarios, subject to approval.
Located on Highway 13 with frontage visibility across from Super Menards. The zoning is B-4 Highway Commercial, which supports a range of uses including auto repair and service, detailing, retail, office, and warehouse/manufacturing.
The layout and zoning make this building well suited to accommodate multiple tenancy scenarios, subject to approval.
Key Highlights
- 15,352 total building size (mezzanine space also available, not included in the stated SF)
- Freestanding flex/warehouse building built 1975–1985 with large storefront and monument signage
- Highway 13 frontage with visibility across from Super Menards
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
$166,780
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
8.55%
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%
$3,335,600
$3.3M
Cap Rate 7%
$2,382,571
$2.4M
Cap Rate 9%
$1,853,111
$1.9M
Market Conditions
NOI Build-Up for 15,352 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
$248.7K $16.20/SF
− Vacancy
−$10.4K −$0.68/SF
EGI
$238.3K $15.52/SF
− OpEx
−$71.5K −$4.66/SF
NOI
$166.8K $10.86/SF
Area
Dakota County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$3,335,600
Cap Rate 7%
$2,382,571
Cap Rate 9%
$1,853,111
Alternative Uses
Best Use
Warehouse
$2.89M
$2.53M – $3.38M
NOI $202,518 @ 7.0% cap · market cap 10.39%
Second Best
Industrial
$2.38M
$2.08M – $2.78M
NOI $166,780 @ 7.0% cap · market cap 8.55%
Theoretical Best
Healthcare Medical
$3.78M
$3.31M – $4.41M
NOI $264,454 @ 7.0% cap · market cap 13.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Sprinkler system
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
287
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55337, MN
47,333
Population
19,695
Households
2.4
Avg Household Size
37
Median Age
39%
College-Educated
93%
High-School Grad
18.7 sq mi
ZIP Area
2,531
Density / Sq Mi
$81,641
Median Household Income
$46,602
Median Earnings
$1,463
Median Rent
$327,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Midwest region
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Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Flex space - Freestanding flex/warehouse building with large storefront and monument signage on Highway 13, fully sprinklered and zoned B-4.
Where is this flex space located?
The property is located at 2401 Hwy 13 W Burnsville, MN.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: 15,352 total building size (mezzanine space also available, not included in the stated SF); Freestanding flex/warehouse building built 1975–1985 with large storefront and monument signage; Highway 13 frontage with visibility across from Super Menards
