Flex Retail and Office
For Sale
$500,000
2847 Central Avenue NE, Minneapolis, MN 55418
Front space operates as an art gallery with 13-foot ceilings, while a fenced, sod-filled backyard and parking access support flexible use.
Property Size1,914 SF
Price / SF$261.23
Days on Market102
Property Features for 2847 Central Avenue NE
General Information
Standard status
Active
Size
1,914 SF
Property subtype
Commercial
Zoning
Business/Commercial
Additional Details
Fenced Yard
Yes
Clear Height
13 ft
Taxes and HOA fees
Annual Taxes
$9,098
Amenities
fenced backyard
parking lot
Building Details
Building Size
1,914 SF
Year Built
1931
Year Renovated
2026
Stories
1
Units
1
Listing Agency:
Lifestyles
(763) 229-4965
Listed By:
Jonathan F. Miskowiec
(763) 229-4965
Source:
Juverealestate
Added: May 15
Changed: Aug 23
Last Checked: Aug 23 at 4:59AM
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 Lifestyles
Investment Insights
Based on property information with market context.
This commercial building offers a flexible configuration with a front area currently used as an art gallery. The space features dramatic 13-foot ceilings, strong lighting, and a clean, open layout intended for displaying artwork or retail products, and it can also function as a polished office or studio environment. The building includes approximately $15,000 in upgraded lighting, with dimmable fluorescents and LED cans.
The property also includes ample outdoor space in the backyard, which has new sod and is fully fenced with 6-foot horizontal privacy fencing. The fence includes locking gates that connect the backyard to the front and to the parking lot, and the parking lot is accessible from the alley in back.
Much of the structure was built new in 2017, including new HVAC, roof, electrical, plumbing, and windows. In 2026, the exterior and interior finishes were refreshed with newly painted exterior, floors, and walls, along with fresh sod, supporting immediate occupancy.
The property also includes ample outdoor space in the backyard, which has new sod and is fully fenced with 6-foot horizontal privacy fencing. The fence includes locking gates that connect the backyard to the front and to the parking lot, and the parking lot is accessible from the alley in back.
Much of the structure was built new in 2017, including new HVAC, roof, electrical, plumbing, and windows. In 2026, the exterior and interior finishes were refreshed with newly painted exterior, floors, and walls, along with fresh sod, supporting immediate occupancy.
Key Highlights
- Front 1,000 SF art gallery with dramatic 13‑foot ceilings, excellent lighting, and a clean/open layout
- About $15,000 in upgraded lighting: dimmable fluorescents and LED cans for artwork, retail, or office/studio use
- Backyard offers ample fenced space with new sod and 6‑foot horizontal privacy fencing plus locking gates to front and 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
$23,051
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
4.61%
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%
$461,020
$461.0K
Cap Rate 7%
$329,300
$329.3K
Cap Rate 9%
$256,122
$256.1K
Market Conditions
NOI Build-Up for 1,914 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
$35.6K $18.60/SF
− Vacancy
−$2.7K −$1.40/SF
EGI
$32.9K $17.21/SF
− OpEx
−$9.9K −$5.16/SF
NOI
$23.1K $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%
$461,020
Cap Rate 7%
$329,300
Cap Rate 9%
$256,122
Alternative Uses
Best Use
Retail
$329.3K
$288.1K – $384.2K
NOI $23,051 @ 7.0% cap · market cap 4.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$456.6K
$399.6K – $532.8K
NOI $31,965 @ 7.0% cap · market cap 6.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
13 ft
Clear height
Yes
Fenced yard
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
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Frequently Asked Questions
What type of property is this?
Showroom - Front space operates as an art gallery with 13-foot ceilings, while a fenced, sod-filled backyard and parking access support flexible use.
Where is this showroom located?
The property is located at 2847 Central Avenue NE Minneapolis, MN.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Front 1,000 SF art gallery with dramatic 13‑foot ceilings, excellent lighting, and a clean/open layout; About $15,000 in upgraded lighting: dimmable fluorescents and LED cans for artwork, retail, or office/studio use; Backyard offers ample fenced space with new sod and 6‑foot horizontal privacy fencing plus locking gates to front and parking lot
