Warehouse with Parking
For Sale
$1,300,000
2500 27th Avenue S, Minneapolis, MN 55406
Commercial Sale, Minneapolis, MN
Property Size6,270 SF
Lot Size0.67 Acres
Price / SF$207.34
Days on Market183
Property Features for 2500 27th Avenue S
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial
Parking features
Parking Lot
Exterior features
Block
Subdivision
Morrison & Lovejoys Add
High school district
Minneapolis
Directions
26th Ave South to 27th Ave., East to property.
Standard status
Active
APN
3602924130071
Lot size
0.67 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
24959
Utilities
Heating system
Forced Air
Building Details
Year built
1955
Listing Agency:
LaBelle Real Estate Group Inc
(651) 705-0166
Listed By:
Gerald V. Ferguson
(651) 503-9124
Added: Mar 4
Changed: Aug 27
Last Checked: Sep 3 at 7:06AM
MLS# 7030735
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This warehouse property provides 6,270 finished square feet on a 0.67-acre lot. The building dates to 1955 and features block exterior construction, forced-air heating, and a dedicated parking lot. The finished interior offers an established commercial footprint for warehouse-oriented operations and other uses supported by the property’s configuration.
Located at 2500 27th Avenue S in Minneapolis, the site is positioned in an area described as having foot and bicycle traffic. Its on-site parking and finished space provide practical features for a range of commercial occupancy needs.
Located at 2500 27th Avenue S in Minneapolis, the site is positioned in an area described as having foot and bicycle traffic. Its on-site parking and finished space provide practical features for a range of commercial occupancy needs.
Key Highlights
- 6,270 finished square feet on a 0.67‑acre lot
- Warehouse property with dedicated parking lot
- Block exterior construction
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 a block exterior in Minneapolis.
Where is this warehouse located?
The property is located at 2500 27th Avenue 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 on a 0.67‑acre lot; Warehouse property with dedicated parking lot; Block exterior construction
