Main Level Corner
For Sale
Contact for pricing
255 Hwy 97, Forest Lake, MN 55025
Versatile 1,464 SF unit ideal for office, retail, or medical.
Property Size1,464 SF
Price / SF$153.55
Days on Market122
Property Features for 255 Hwy 97
General Information
Standard status
Active
Size
1,464 SF
Property subtype
OFFICE
Listing Agency:
Essence Real Estate Services Inc.
(651) 341-5044
Listed By:
Jeff D Nordness
(651) 341-5044
Source:
Moodyscre
Added: Apr 23
Changed: Aug 9
Last Checked: Aug 21 at 3:00PM
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 Essence Real Estate Services Inc.
Investment Insights
Based on property information with market context.
This main level corner unit offers approximately 1,464 square feet of space, suitable for office, retail, service, or medical use. The property benefits from high traffic and visibility, with convenient access to Highway 97 and Highway 61 (Forest Boulevard). Parking is available on two sides of the building. A drive-thru window may be possible. The property's location is near Forest Lake City Hall, Dunkin', Coffee & Bytes, Friar's, Rubio's on 61, convenience stores, and other retail establishments. The 2026 taxes are $2,230.00, and the association dues are $167.00 per month.
Key Highlights
- High traffic and visibility with terrific access to Hwy.97 and Hwy.61 (Forest Blvd.)
- Rare main level corner unit
- Ideal for office, retail, service or medical
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
$20,308
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
9.03%
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%
$406,160
$406.2K
Cap Rate 7%
$290,114
$290.1K
Cap Rate 9%
$225,644
$225.6K
Market Conditions
NOI Build-Up for 1,464 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
$36.5K $24.96/SF
− Vacancy
−$9.5K −$6.46/SF
EGI
$27.1K $18.50/SF
− OpEx
−$6.8K −$4.62/SF
NOI
$20.3K $13.87/SF
Area
Washington County, MN
Vacancy
25.90%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
25.00%
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%
$406,160
Cap Rate 7%
$290,114
Cap Rate 9%
$225,644
Alternative Uses
Best Use
Office B
$290.1K
$253.9K – $338.5K
NOI $20,308 @ 7.0% cap · market cap 9.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$406.7K
$355.8K – $474.4K
NOI $28,466 @ 7.0% cap · market cap 12.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
32
Businesses Nearby
Explore this area
Business Placement
Demographics for 55025, MN
25,784
Population
10,522
Households
2.5
Avg Household Size
40
Median Age
36%
College-Educated
94%
High-School Grad
77.1 sq mi
ZIP Area
334
Density / Sq Mi
$95,993
Median Household Income
$51,041
Median Earnings
$1,355
Median Rent
$385,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Versatile 1,464 SF unit ideal for office, retail, or medical.
Where is this office units located?
The property is located at 255 Hwy 97 Forest Lake, MN.
What is the asking price?
The asking price for this property is $224,800.
What are key features of this property?
This property features: High traffic and visibility with terrific access to Hwy.97 and Hwy.61 (Forest Blvd.); Rare main level corner unit; Ideal for office, retail, service or medical
