Warehouse with Parking
For Sale
$1,300,000
2500 27th Ave S, Minneapolis, MN 55406
Finished warehouse space with on-site parking and access for walk-in customers.
Property Size6,270 SF
Price / SF$207.34
Days on Market132
Property Features for 2500 27th Ave S
General Information
Standard status
Active
Size
6,270 SF
Building Details
Year Built
1955
Listing Agency:
LaBelle Real Estate Group Inc
Listed By:
Gerald V. Ferguson
(651) 705-0166
Source:
Putyourrootsdown
Added: Apr 24
Changed: Aug 30
Last Checked: Sep 1 at 11:10PM
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 LaBelle Real Estate Group Inc
Investment Insights
Based on property information with market context.
This Minneapolis warehouse contains 6,270 finished square feet and was built in 1955. The property includes a substantial parking lot, supporting customer access and on-site operations.
Located at 2500 27th Avenue S, the site benefits from reported pedestrian and bicycle traffic that may support walk-in activity. The warehouse format and parking component provide a straightforward commercial setting for a range of uses.
Located at 2500 27th Avenue S, the site benefits from reported pedestrian and bicycle traffic that may support walk-in activity. The warehouse format and parking component provide a straightforward commercial setting for a range of uses.
Key Highlights
- 6,270 finished square feet
- Warehouse property built in 1955
- Substantial on‑site parking lot
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
$97,416
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
7.49%
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%
$1,948,320
$1.9M
Cap Rate 7%
$1,391,657
$1.4M
Cap Rate 9%
$1,082,400
$1.1M
Market Conditions
NOI Build-Up for 6,270 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
$119.6K $19.08/SF
− Vacancy
−$5.0K −$0.80/SF
EGI
$114.6K $18.28/SF
− OpEx
−$17.2K −$2.74/SF
NOI
$97.4K $15.54/SF
Area
ZIP 55406
Vacancy
4.20%
Lease Rate
$19.08 /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%
$1,948,320
Cap Rate 7%
$1,391,657
Cap Rate 9%
$1,082,400
Alternative Uses
Best Use
Warehouse
$1.39M
$1.22M – $1.62M
NOI $97,416 @ 7.0% cap · market cap 7.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.83M
$1.60M – $2.14M
NOI $128,249 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,493
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55406, MN
34,588
Population
17,439
Households
2
Avg Household Size
39
Median Age
56%
College-Educated
93%
High-School Grad
5.0 sq mi
ZIP Area
6,918
Density / Sq Mi
$91,865
Median Household Income
$56,291
Median Earnings
$1,276
Median Rent
$335,500
Median Home Value
Market
Vacancy Rate% for Industrial in Minneapolis, MN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- MPLS Storage — 3138 Snelling Ave, Minneapolis, MN 55406
- LRT Storage Facility — Minneapolis, MN 55406
- Self Storage — 3311 east 25th street, minneapolis, mn 55406
Frequently Asked Questions
What type of property is this?
Warehouse - Finished warehouse space with on-site parking and access for walk-in customers.
Where is this warehouse located?
The property is located at 2500 27th Ave S Minneapolis, MN.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: 6,270 finished square feet; Warehouse property built in 1955; Substantial on‑site parking lot
