Renovated Office
For Sale
$3,400,000
2429 Nicollet Ave S, Minneapolis, MN 55404
Extensively renovated office property offering 23,825 square feet for owner-user or investment use.
Property Size19,683 SF
Price / SF$172.74
Days on Market29
Property Features for 2429 Nicollet Ave S
General Information
Standard status
Active
Size
19,683 SF
Building Details
Year Built
1957
Listing Agency:
Leverage Realty
Listed By:
Travis C Meldahl
(612) 275-3742
Source:
Homesearchlive
Added: Aug 15
Changed: Sep 8
Last Checked: Sep 11 at 3:13PM
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 Leverage Realty
Investment Insights
Based on property information with market context.
This office building contains 23,825 square feet and has undergone extensive renovation. The property is described as being in great condition, providing an updated setting for office operations or continued investment ownership.
Located at 2429 Nicollet Ave in Minneapolis, Minnesota, the property offers an established office asset within the city. The source information supports both owner-user and investor ownership considerations.
Located at 2429 Nicollet Ave in Minneapolis, Minnesota, the property offers an established office asset within the city. The source information supports both owner-user and investor ownership considerations.
Key Highlights
- 23,825‑square‑foot office building
- Extensively renovated property
- Located at 2429 Nicollet Ave, Minneapolis, MN 55404
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
$245,972
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
7.23%
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%
$4,919,440
$4.9M
Cap Rate 7%
$3,513,886
$3.5M
Cap Rate 9%
$2,733,022
$2.7M
Market Conditions
NOI Build-Up for 19,683 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
$411.0K $20.88/SF
− Vacancy
−$83.0K −$4.22/SF
EGI
$328.0K $16.66/SF
− OpEx
−$82.0K −$4.17/SF
NOI
$246.0K $12.50/SF
Area
Minneapolis, MN
Vacancy
20.20%
Lease Rate
$20.88 /SF/Yr
Expense Ratio
25.00%
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%
$4,919,440
Cap Rate 7%
$3,513,886
Cap Rate 9%
$2,733,022
Alternative Uses
Best Use
Office B
$3.51M
$3.07M – $4.10M
NOI $245,972 @ 7.0% cap · market cap 7.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.70M
$4.11M – $5.48M
NOI $328,717 @ 7.0% cap · market cap 9.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
2,607
Businesses Nearby
Explore this area
Business Placement
Demographics for 55404, MN
29,322
Population
14,372
Households
2
Avg Household Size
32
Median Age
35%
College-Educated
81%
High-School Grad
1.8 sq mi
ZIP Area
16,290
Density / Sq Mi
$43,932
Median Household Income
$35,970
Median Earnings
$1,063
Median Rent
$294,200
Median Home Value
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Extensively renovated office property offering 23,825 square feet for owner-user or investment use.
Where is this office building located?
The property is located at 2429 Nicollet Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $3,400,000.
What are key features of this property?
This property features: 23,825‑square‑foot office building; Extensively renovated property; Located at 2429 Nicollet Ave, Minneapolis, MN 55404
