Building Details

Building Size 1,974 SF

Year Built 1970

Units 1

Construction cinder block

Listing Agency: Kris Lindahl Real Estate Show Phone

Listed By: Kris Lindahl Show Phone

Source: Juverealestate

Added: May 27 Changed: Aug 8 Last Checked: Aug 8 at 11:06AM

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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 Kris Lindahl Real Estate

Investment Insights

Based on property information with market context.

This commercial flex space is a solid cinder block building with heating and air conditioning, additional power capacity, and a large parking area with extra spaces. The layout offers flexibility for office, retail, service, recreation, and other business uses supported by the property’s zoning.

Located at 26545 Drew Avenue in Elko New Market, the property is zoned B-2. Permitted uses identified for the site include professional offices, salons, medical clinics, restaurants, retail establishments, gyms, studios, laundromats, repair services, animal grooming, and other service-based operations.

Key Highlights

• B‑2 zoning supports office, retail, restaurant, medical, service, recreation, and fitness uses
• Solid cinder block commercial building
• Heating and air conditioning in place

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

$21,941

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

8.78%

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%

$438,820 $438.8K

Cap Rate 7%

$313,443 $313.4K

Cap Rate 9%

$243,789 $243.8K

Market Conditions

NOI Build-Up for 1,974 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

$35.5K $18.00/SF

− Vacancy

−$1.8K −$0.90/SF

EGI

$33.8K $17.10/SF

− OpEx

−$11.8K −$5.98/SF

NOI

$21.9K $11.11/SF

Area

Scott County, MN

Vacancy

5.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

35.00%

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%

$438,820

Cap Rate 7%

$313,443

Cap Rate 9%

$243,789

Alternative Uses

Best Use

Office B

$349.8K

$306.1K – $408.1K (±1% cap)

NOI $24,486 @ 7.0% cap · market cap 9.79%

Second Best

Retail

$347.3K

$303.9K – $405.2K (±1% cap)

NOI $24,313 @ 7.0% cap · market cap 9.73%

Theoretical Best

Office A

$471.0K

$412.1K – $549.5K (±1% cap)

NOI $32,967 @ 7.0% cap · market cap 13.19%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Flex space

Suggested Use

Top Pick Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

53

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 55020, MN

4,053

Population

1,501

Households

2.7

Avg Household Size

38

Median Age

38%

College-Educated

97%

High-School Grad

23.8 sq mi

ZIP Area

170

Density / Sq Mi

$127,159

Median Household Income

$65,728

Median Earnings

$452,700

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Cinder block commercial building with HVAC, additional power capacity, and parking for customer and employee use.

Where is this flex space located?

The property is located at 26545 Drew Avenue Elko New Market, MN.

What is the asking price?

The asking price for this property is $250,000.

What are key features of this property?

This property features: B‑2 zoning supports office, retail, restaurant, medical, service, recreation, and fitness uses; Solid cinder block commercial building; Heating and air conditioning in place