Versatile Industrial/Office Building in
For Sale
Contact for pricing
2460 Marion Rd SE, Rochester, MN
Adaptable space for manufacturing, warehousing, or commercial operations.
Property Size23,378 SF
Lot Size12.76 Acres
Price / SF$106.94
Days on Market268
Property Features for 2460 Marion Rd SE
General Information
Standard status
Active
Size
23,378 SF
Lot size
12.76 Acres
Property subtype
FLEX_R_AND_D
Lease Type
NNN
Properties For Sale
at 2460 Marion Rd SE Contact us- Floor
- 1
- Size
- 44,946 SF
- Type
- FLEX_R_AND_D
- Lease Type
- NNN
- Availability
- AVAILABLE, Now
- Sublease
- No
Flex R&D Property for Lease or Sale
3 story office building for lease or sale. 5000 - 44,956 sq ft is available for...
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Listing Agency:
Paramark Corporation
(507) 421-6556
Listed By:
Darci Fenske · License #MINNESOTA20135501
(507) 421-6556
Source:
Moodyscre
Added: Nov 24, 2025
Changed: Aug 8
Last Checked: Aug 19 at 6:16AM
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 Paramark Corporation
Investment Insights
Based on property information with market context.
Under new ownership, this building offers over 46,000 SF of versatile light industrial and office space suitable for various industries in Rochester, MN. The property features two available suites: Suite 100 on the first floor and Suite 200 on the second floor, each offering 23,378 SF that can be divided. The layout includes an open floor plan, several offices, and conference rooms located off the main lobby. The building is equipped with three clean rooms that have significant electrical capacity to support specialized operations. Ample on-site parking is available for employees, clients, and visitors. The property is located on Marion Road, providing convenient access to major highways and business hubs. This space is suitable for industrial, manufacturing, warehousing, or commercial operations and can be demised to accommodate businesses of various sizes.
Key Highlights
- Over 46,000 SF of divisible space ideal for industrial, manufacturing, warehousing, or commercial operations.
- Three clean rooms equipped with significant electrical capacity.
- Prime location on Marion Road with easy access to major highways and business hubs.
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
$185,042
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
7.40%
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%
$3,700,840
$3.7M
Cap Rate 7%
$2,643,457
$2.6M
Cap Rate 9%
$2,056,022
$2.1M
Market Conditions
NOI Build-Up for 23,378 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
$224.4K $9.60/SF
− Vacancy
−$6.7K −$0.29/SF
EGI
$217.7K $9.31/SF
− OpEx
−$32.7K −$1.40/SF
NOI
$185.0K $7.92/SF
Area
Rochester, MN
Vacancy
3.00%
Lease Rate
$9.60 /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%
$3,700,840
Cap Rate 7%
$2,643,457
Cap Rate 9%
$2,056,022
Alternative Uses
Best Use
Office B
$6.15M
$5.38M – $7.18M
NOI $430,798 @ 7.0% cap · market cap 17.23%
Second Best
Warehouse
$2.64M
$2.31M – $3.08M
NOI $185,042 @ 7.0% cap · market cap 7.40%
Theoretical Best
Office A
$9.00M
$7.88M – $10.50M
NOI $630,286 @ 7.0% cap · market cap 25.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
67
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Adaptable space for manufacturing, warehousing, or commercial operations.
Where is this manufacturing property located?
The property is located at 2460 Marion Rd SE Rochester, MN.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Over 46,000 SF of divisible space ideal for industrial, manufacturing, warehousing, or commercial operations.; Three clean rooms equipped with significant electrical capacity.; Prime location on Marion Road with easy access to major highways and business hubs.
