Fully Renovated Office/Flex
For Sale
$3,400,000
2429 Nicollet Avenue S, Minneapolis, MN 55404
Fully renovated office/flex building with two parking lots totaling 55 spaces and an on-site elevator.
Property Size19,683 SF
Lot Size0.75 Acres
Days on Market304
Property Features for 2429 Nicollet Avenue S
General Information
Standard status
Active
Size
19,683 SF
Total Parking Spaces
55
Lot size
0.75 Acres
Property subtype
Commercial
Zoning
Business/Commercial
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$90,719
Building Details
Building Size
19,683 SF
Year Built
1957
Year Renovated
2016
Stories
2
Units
1
Listing Agency:
Leverage Realty
(612) 275-3742
Listed By:
Travis C Meldahl
(612) 275-3742
Source:
Ivyrealestategroup
Added: Oct 24, 2025
Changed: Aug 23
Last Checked: Aug 22 at 12:55PM
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 fully renovated office/flex building sits on a 3/4-acre site and features substantial interior and systems upgrades. The 2016 renovation included new electric, plumbing, heating/cooling, a new roof, new exterior and interior finishes, and installation of a new elevator.
The property includes two parking lots positioned on either side of the building, providing parking for 55 cars. It is fully leased, and appointments require notifying the listing agent. The site is located on Nicollet Avenue S, and the remarks note Nicollet Avenue is fully opened to the south.
The property includes two parking lots positioned on either side of the building, providing parking for 55 cars. It is fully leased, and appointments require notifying the listing agent. The site is located on Nicollet Avenue S, and the remarks note Nicollet Avenue is fully opened to the south.
Key Highlights
- Fully renovated office/flex building with an on‑site elevator
- 2016 renovation: new electric, plumbing, heating/cooling, roof, and high‑end exterior and interior finishes
- 3/4‑acre site with two parking lots on either side of the building totaling 55 car spaces
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
Industrial
$2.99M
$2.61M – $3.48M
NOI $209,011 @ 7.0% cap · market cap 6.15%
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
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
2,607
Businesses Nearby
Balanced
Demand for This Use
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
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Fully renovated office/flex building with two parking lots totaling 55 spaces and an on-site elevator.
Where is this flex space located?
The property is located at 2429 Nicollet Avenue 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: Fully renovated office/flex building with an on‑site elevator; 2016 renovation: new electric, plumbing, heating/cooling, roof, and high‑end exterior and interior finishes; 3/4‑acre site with two parking lots on either side of the building totaling 55 car spaces
