Two-Level Freestanding
New
For Sale
Contact for pricing
2500 Central Ave NE, Minneapolis, MN 55418
Vacant commercial space with a primary retail area and functional lower-level floor area.
Property Size13,665 SF
Price / SF$146.36
Days on Market7
Property Features for 2500 Central Ave NE
General Information
Standard status
Active
Size
13,665 SF
Property subtype
RETAIL
Additional Details
Corner Location
Yes
Building Details
Buildings
1
Stories
2
Listing Agency:
Wyn Group
(763) 888-8111
Listed By:
Jay Mawas · License #40684904
(612) 772-3566
Source:
Moodyscre
Added: Aug 28
Changed: Aug 31
Last Checked: Sep 1 at 10:16PM
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 Wyn Group
Investment Insights
Based on property information with market context.
This freestanding storefront property provides 13,665 square feet of commercial space arranged across two levels. The building includes a primary retail area and a lower level that can support additional commercial functions. Delivery is scheduled in vacant condition, allowing the next owner to plan the space around its intended operation.
The property is located at 2500 Central Ave NE at the intersection of Central Avenue NE and Lowry Avenue NE. Its two-level configuration and combination of retail and lower-level space provide a practical foundation for an owner-user or a future multi-tenant layout.
The property is located at 2500 Central Ave NE at the intersection of Central Avenue NE and Lowry Avenue NE. Its two-level configuration and combination of retail and lower-level space provide a practical foundation for an owner-user or a future multi-tenant layout.
Key Highlights
- 13,665 SF of commercial space across two levels
- Freestanding storefront property
- Primary retail area plus usable lower level
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
$164,574
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
8.23%
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%
$3,291,480
$3.3M
Cap Rate 7%
$2,351,057
$2.4M
Cap Rate 9%
$1,828,600
$1.8M
Market Conditions
NOI Build-Up for 13,665 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
$254.2K $18.60/SF
− Vacancy
−$19.1K −$1.40/SF
EGI
$235.1K $17.21/SF
− OpEx
−$70.5K −$5.16/SF
NOI
$164.6K $12.04/SF
Area
Minneapolis, MN
Vacancy
7.50%
Lease Rate
$18.60 /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%
$3,291,480
Cap Rate 7%
$2,351,057
Cap Rate 9%
$1,828,600
Alternative Uses
Best Use
Retail
$2.35M
$2.06M – $2.74M
NOI $164,574 @ 7.0% cap · market cap 8.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.26M
$2.85M – $3.80M
NOI $228,213 @ 7.0% cap · market cap 11.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
636
Businesses Nearby
3k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
AutoZone
Shops & Services
2,885 visits/mo
0.4 miles
Demographics for 55418, MN
31,887
Population
14,859
Households
2.1
Avg Household Size
37
Median Age
51%
College-Educated
93%
High-School Grad
7.0 sq mi
ZIP Area
4,555
Density / Sq Mi
$95,630
Median Household Income
$56,491
Median Earnings
$1,349
Median Rent
$332,500
Median Home Value
Market
Vacancy Rate% for Retail in Minneapolis, MN
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?
Storefront property - Vacant commercial space with a primary retail area and functional lower-level floor area.
Where is this storefront property located?
The property is located at 2500 Central Ave NE Minneapolis, MN.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 13,665 SF of commercial space across two levels; Freestanding storefront property; Primary retail area plus usable lower level
