Mixed-Use Property with
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3312 Gorham Ave, St Louis Park, MN 55426
Office and industrial warehouse space are combined in a single commercial property.
Property Size12,882 SF
Price / SF$124.20
Days on Market7
Property Features for 3312 Gorham Ave
General Information
Standard status
Active
Size
12,882 SF
Property subtype
INDUSTRIAL
Warehouse & Industrial
Clear Height
10 ft
Office Build-Out
8,000 SF
Dock-High Doors
2
Drive-In Doors
1
Listing Agency:
Lee & Associates
(952) 955-4400
Listed By:
Nathan A Arnold · License ##20153149
(612) 578-2848
Source:
Moodyscre
Added: Sep 11
Changed: Sep 16
Last Checked: Sep 16 at 1:51PM
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 Lee & Associates
Investment Insights
Based on property information with market context.
This mixed-use commercial property combines 8,000 square feet of office space with an industrial warehouse component within a 12,882-square-foot property. Loading infrastructure includes two dock positions and one drive-in door, while the warehouse provides 10 feet of clear ceiling height.
Located at 3312 Gorham Ave in St. Louis Park, Minnesota, the property offers a combined office and industrial configuration for commercial operations requiring both workspace and warehouse functionality. The property identification number is 17-117-21-42-0060.
Located at 3312 Gorham Ave in St. Louis Park, Minnesota, the property offers a combined office and industrial configuration for commercial operations requiring both workspace and warehouse functionality. The property identification number is 17-117-21-42-0060.
Key Highlights
- 8,000 square feet of office space
- Industrial warehouse component with 10‑foot clear ceiling height
- Two dock positions and one drive‑in door
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
$145,410
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
9.09%
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%
$2,908,200
$2.9M
Cap Rate 7%
$2,077,286
$2.1M
Cap Rate 9%
$1,615,667
$1.6M
Market Conditions
NOI Build-Up for 12,882 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
$239.6K $18.60/SF
− Vacancy
−$6.9K −$0.54/SF
EGI
$232.7K $18.06/SF
− OpEx
−$87.2K −$6.77/SF
NOI
$145.4K $11.29/SF
Area
Minneapolis, MN
Vacancy
2.90%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
37.50%
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%
$2,908,200
Cap Rate 7%
$2,077,286
Cap Rate 9%
$1,615,667
Alternative Uses
Best Use
Warehouse
$2.68M
$2.35M – $3.13M
NOI $187,660 @ 7.0% cap · market cap 11.73%
Second Best
Mixed Use
$2.08M
$1.82M – $2.42M
NOI $145,410 @ 7.0% cap · market cap 9.09%
Theoretical Best
Office A
$3.07M
$2.69M – $3.59M
NOI $215,136 @ 7.0% cap · market cap 13.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
10 ft
Clear height
2
Dock-high doors
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
779
Businesses Nearby
Explore this area
Business Placement
Demographics for 55426, MN
26,716
Population
12,099
Households
2.2
Avg Household Size
36
Median Age
56%
College-Educated
97%
High-School Grad
6.6 sq mi
ZIP Area
4,048
Density / Sq Mi
$96,887
Median Household Income
$59,925
Median Earnings
$1,512
Median Rent
$345,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office and industrial warehouse space are combined in a single commercial property.
Where is this mixed-use property located?
The property is located at 3312 Gorham Ave St Louis Park, MN.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 8,000 square feet of office space; Industrial warehouse component with 10‑foot clear ceiling height; Two dock positions and one drive‑in door
