Freestanding Retail Building on
For Sale
$550,000
2471 4th Street SW, Mason City, IA 50401
Freestanding retail building with great visibility and flexible zoning.
Property Size4,000 SF
Price / SF$137.50
Days on Market271
Property Features for 2471 4th Street SW
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Retail
Building Details
Building Size
4,000 SF
Year Built
1988
Listing Agency:
SVN | CREATE Commercial Real Estate Advisors
(847) 431-6672
Listed By:
Nora Walsh · License #IA #S66842000
(847) 431-6672
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 14
Last Checked: Aug 19 at 5:34AM
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 SVN | CREATE Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
This freestanding retail building is located along Highway 122 (4th Street Southwest), the main east/west thoroughfare in Mason City. It features great visibility with pylon signage off Mason City's primary retail corridor, dual points of ingress/egress, a drive-in door for loading, and flexible zoning. The property is situated across the street from a Hy-Vee Anchored Retail Center and just east of Fleet Farm, Target, and Menards. The campus of Mercy One North Iowa Medical Center, Mason City’s largest employer, is approximately one mile away. Mason City is the county seat of Cerro Gordo county and home to approximately 27,740 residents. The largest urban center in North Iowa, Mason City is located 120 miles north of Des Moines and 135 miles south of the Twin Cities. The building is in a low turnover corridor with great co-tenancy. Mercy One North Iowa Medical Center, a 342-bed hospital, is the largest employer in Mason City. Manufacturing also plays a pivotal role in the city’s economy with 48 manufacturing plants and employing over 4,000 people. Other major employers include Woodharbor, Smithfield Foods, Cargill Kitchen Solutions, Kraft, and the Principal Financial Group. Mason City prides itself on their education system and the Mason City school district ranks in the top 15% in the United States for student academic achievement tests.
Key Highlights
- Located on Highway 122, Mason City's main east/west thoroughfare.
- High visibility with pylon signage on the primary retail corridor.
- Close proximity to major retailers.
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
$30,912
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
5.62%
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%
$618,240
$618.2K
Cap Rate 7%
$441,600
$441.6K
Cap Rate 9%
$343,467
$343.5K
Market Conditions
NOI Build-Up for 4,000 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
$48.0K $12.00/SF
− Vacancy
−$3.8K −$0.96/SF
EGI
$44.2K $11.04/SF
− OpEx
−$13.2K −$3.31/SF
NOI
$30.9K $7.73/SF
Area
Cerro Gordo County, IA
Vacancy
8.00%
Lease Rate
$12.00 /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%
$618,240
Cap Rate 7%
$441,600
Cap Rate 9%
$343,467
Alternative Uses
Best Use
Retail
$441.6K
$386.4K – $515.2K
NOI $30,912 @ 7.0% cap · market cap 5.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.00M
$878.6K – $1.17M
NOI $70,287 @ 7.0% cap · market cap 12.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
277
Businesses Nearby
Explore this area
Business Placement
Demographics for 50401, IA
28,981
Population
14,746
Households
2
Avg Household Size
43
Median Age
22%
College-Educated
94%
High-School Grad
148.2 sq mi
ZIP Area
196
Density / Sq Mi
$63,807
Median Household Income
$38,929
Median Earnings
$868
Median Rent
$134,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Freestanding retail building with great visibility and flexible zoning.
Where is this retail space located?
The property is located at 2471 4th Street SW Mason City, IA.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Located on Highway 122, Mason City's main east/west thoroughfare.; High visibility with pylon signage on the primary retail corridor.; Close proximity to major retailers.
