Downtown Office Condo
For Sale
Contact for pricing
300 3rd Avenue Southeast, Rochester, MN 55904
Top-floor office condominium with connected units, secured access, and parking beneath the building.
Property Size2,860 SF
Price / SF$405.59
Days on Market70
Property Features for 300 3rd Avenue Southeast
General Information
Standard status
Active
Size
2,860 SF
Class
B
Property subtype
Office
Zoning
Business/ Commercial
Occupancy
25%
Lease Type
Modified Gross
Investment Type
Net Lease
Net Operating Income
$2,200
Additional Details
Office Units
4
Building Details
Year Built
1978
Buildings
1
Units
4
Tenancy
Multi
Listing Agency:
Property Brokers of Minnesota
(507) 358-5654
Listed By:
Brian Rossow · License #40146296
Source:
Crexi
Added: Jun 12
Changed: Aug 8
Last Checked: Aug 19 at 6:32PM
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 Property Brokers of Minnesota
Investment Insights
Based on property information with market context.
This property is the entire north side of the top floor of a secure, professionally managed office condominium building. It comprises four condominium units, with three units currently connected and operating as one large office suite. That connected configuration can support an owner-user or a single tenant, while still allowing the space to be separated for multiple tenants if desired. The fourth unit is leased to a long-term tenant through May 2029.
Situated at 300 3rd Avenue Southeast, Rochester, the building is located across the river from the Mayo Civic Center and directly across from the Government Center. Parking is provided beneath the building, offering shaded parking in warmer months and protection from snow in winter.
For buyers, this layout is well suited to an owner-occupant seeking a consolidated top-floor office suite with the option to reposition by separating units. The in-place lease on the fourth unit can also support an operator who wants to maintain an occupied component while managing the remainder of the space. Secure building access and on-site parking beneath the structure provide practical day-to-day convenience for occupants and clients.
Situated at 300 3rd Avenue Southeast, Rochester, the building is located across the river from the Mayo Civic Center and directly across from the Government Center. Parking is provided beneath the building, offering shaded parking in warmer months and protection from snow in winter.
For buyers, this layout is well suited to an owner-occupant seeking a consolidated top-floor office suite with the option to reposition by separating units. The in-place lease on the fourth unit can also support an operator who wants to maintain an occupied component while managing the remainder of the space. Secure building access and on-site parking beneath the structure provide practical day-to-day convenience for occupants and clients.
Key Highlights
- 1978‑built downtown office condominium with more than 2,800 SF on the top floor
- Entire North side of the top floor includes 4 condo units, with 3 currently connected as one large office suite
- 4th unit is leased to a long‑term tenant through May 2029
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
$52,703
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
4.54%
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%
$1,054,060
$1.1M
Cap Rate 7%
$752,900
$752.9K
Cap Rate 9%
$585,589
$585.6K
Market Conditions
NOI Build-Up for 2,860 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
$77.2K $27.00/SF
− Vacancy
−$6.9K −$2.43/SF
EGI
$70.3K $24.57/SF
− OpEx
−$17.6K −$6.14/SF
NOI
$52.7K $18.43/SF
Area
Rochester, MN
Vacancy
9.00%
Lease Rate
$27.00 /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%
$1,054,060
Cap Rate 7%
$752,900
Cap Rate 9%
$585,589
Alternative Uses
Best Use
Office B
$752.9K
$658.8K – $878.4K
NOI $52,703 @ 7.0% cap · market cap 4.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.10M
$963.8K – $1.29M
NOI $77,107 @ 7.0% cap · market cap 6.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Office units
Location Intelligence
Trade Area within ½ mile
7,129
Businesses Nearby
Explore this area
Business Placement
Demographics for 55904, MN
29,813
Population
12,984
Households
2.3
Avg Household Size
35
Median Age
37%
College-Educated
93%
High-School Grad
60.1 sq mi
ZIP Area
496
Density / Sq Mi
$76,434
Median Household Income
$47,250
Median Earnings
$1,253
Median Rent
$237,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office units - Top-floor office condominium with connected units, secured access, and parking beneath the building.
Where is this office units located?
The property is located at 300 3rd Avenue Southeast Rochester, MN.
What is the asking price?
The asking price for this property is $1,160,000.
What are key features of this property?
This property features: 1978‑built downtown office condominium with more than 2,800 SF on the top floor; Entire North side of the top floor includes 4 condo units, with 3 currently connected as one large office suite; 4th unit is leased to a long‑term tenant through May 2029
