Building Details

Year Built 2018

Year Renovated 2023

Buildings 1

Listing Agency: Rice Real Estate Services Show Phone

Listed By: Ben Copperthite · License #MN

Source: Crexi

Added: May 8 Changed: Aug 8 Last Checked: Jul 22 at 3:43AM

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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 Rice Real Estate Services

Investment Insights

Based on property information with market context.

This well-maintained, well-built building includes approximately 6,500 square feet of shop space and about 700 square feet of office space. The layout supports a combined work and administration setup, with space configured for hands-on, service-oriented business needs.

The property is listed for sale and totals approximately 7,200 square feet. Public remarks indicate it was designed with hardworking professionals in mind, including contractors, landscapers, and a wide range of trade services.

Overall, it presents a practical flex configuration with dedicated shop and office space suitable for businesses needing both operating area and on-site work space.

Key Highlights

• Built in 2018
• Approximately 6,500 SF of shop space
• Approximately 700 SF of office space

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

$58,517

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

6.89%

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%

$1,170,340 $1.2M

Cap Rate 7%

$835,957 $836.0K

Cap Rate 9%

$650,189 $650.2K

Market Conditions

NOI Build-Up for 7,200 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

$71.7K $9.96/SF

− Vacancy

−$2.9K −$0.40/SF

EGI

$68.8K $9.56/SF

− OpEx

−$10.3K −$1.43/SF

NOI

$58.5K $8.13/SF

Area

Stearns County, MN

Vacancy

4.00%

Lease Rate

$9.96 /SF/Yr

Expense Ratio

15.00%

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%

$1,170,340

Cap Rate 7%

$835,957

Cap Rate 9%

$650,189

Alternative Uses

Best Use

Flex RnD

$1.24M

$1.08M – $1.44M (±1% cap)

NOI $86,472 @ 7.0% cap · market cap 10.17%

Second Best

Warehouse

$836.0K

$731.5K – $975.3K (±1% cap)

NOI $58,517 @ 7.0% cap · market cap 6.89%

Theoretical Best

Office A

$1.58M

$1.38M – $1.84M (±1% cap)

NOI $110,351 @ 7.0% cap · market cap 12.98%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Central Minnesota Ceiling, ... IT Consulting Firm

Suggested Use

Top Pick Tech Support Center Auto Repair Shop

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

4

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56374, MN

9,943

Population

3,662

Households

2.7

Avg Household Size

33

Median Age

31%

College-Educated

91%

High-School Grad

66.4 sq mi

ZIP Area

150

Density / Sq Mi

$78,415

Median Household Income

$36,851

Median Earnings

$1,134

Median Rent

$281,300

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 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 - Well-maintained building offering shop space with additional office area, designed for trade-service operations.

Where is this flex space located?

The property is located at 31294 115th Ave St Joseph, MN.

What is the asking price?

The asking price for this property is $849,900.

What are key features of this property?

This property features: Built in 2018; Approximately 6,500 SF of shop space; Approximately 700 SF of office space