Flex Property with Shop
New
For Sale
$999,900
3327 E Fir Avenue, Fergus Falls, MN 56537
Commercial Sale, Fergus Falls, MN
Property Size4,200 SF
Lot Size2.28 Acres
Price / SF$238.07
Days on Market2
Property Features for 3327 E Fir Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial
Bedrooms
3
Bathrooms
3
Full bathrooms
3
Rooms
Bedroom 1, Bathroom 2, Bathroom 1, Bedroom 2, Bedroom 3, Bathroom 3
Parking features
Parking Lot
Exterior features
Engineered Wood, Metal
High school district
Fergus Falls
Directions
Fir Avenue or County Rd 1 to property on North side of road. Corner of Cottonwood and Fir.
Standard status
Active
APN
03000300218033
Lot size
2.28 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
3788
Utilities
Sewer type
Private Sewer, Holding Tank
Heating system
Forced Air
Cooling system
Central Air
Water source
Well
Building Details
Year built
1978
Listing Agency:
RE/MAX Advantage Plus · RE/MAX International
(952) 226-7700
Listed By:
Mark P. Abdel
(952) 226-7700
Added: Aug 26
Last Checked: Aug 27 at 1:06AM
MLS# 7106481
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex property at 3327 E Fir Avenue combines a professional office layout with attached residential quarters and substantial support space. The main building contains approximately 4,200 square feet, including four private offices, a conference room, and a half bathroom. The attached 1,200-square-foot living area has three bedrooms, a 3/4 bathroom, laundry, and separate heating and cooling.
A 48x80 outbuilding expands the property's operational capacity with concrete flooring, several offices, and eight existing garage stalls. The configuration can accommodate vehicles, equipment, inventory, storage, or shop functions, with additional stalls or a larger open work area possible through reconfiguration. Approximately 30 paved parking spaces serve employees, customers, company vehicles, trailers, and equipment. Interior updates include flooring, trim, doors, finishes, bathrooms, and office improvements, while the exterior has newer siding and a newer roof. The 2.28-acre property was built in 1978 and uses forced-air heating, central air, a well, and private sewer with a holding tank.
A 48x80 outbuilding expands the property's operational capacity with concrete flooring, several offices, and eight existing garage stalls. The configuration can accommodate vehicles, equipment, inventory, storage, or shop functions, with additional stalls or a larger open work area possible through reconfiguration. Approximately 30 paved parking spaces serve employees, customers, company vehicles, trailers, and equipment. Interior updates include flooring, trim, doors, finishes, bathrooms, and office improvements, while the exterior has newer siding and a newer roof. The 2.28-acre property was built in 1978 and uses forced-air heating, central air, a well, and private sewer with a holding tank.
Key Highlights
- Approximately 4,200 SF main building with four private offices and a conference room
- Attached 1,200 SF living quarters with 3 bedrooms, 3/4 bathroom, laundry, and separate HVAC
- 48x80 outbuilding with concrete floor, several offices, and 8 existing garage stalls
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
$44,982
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
4.50%
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%
$899,640
$899.6K
Cap Rate 7%
$642,600
$642.6K
Cap Rate 9%
$499,800
$499.8K
Market Conditions
NOI Build-Up for 4,200 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
$70.6K $16.80/SF
− Vacancy
−$10.6K −$2.52/SF
EGI
$60.0K $14.28/SF
− OpEx
−$15.0K −$3.57/SF
NOI
$45.0K $10.71/SF
Area
Otter Tail County, MN
Vacancy
15.00%
Lease Rate
$16.80 /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%
$899,640
Cap Rate 7%
$642,600
Cap Rate 9%
$499,800
Alternative Uses
Best Use
Office B
$642.6K
$562.3K – $749.7K
NOI $44,982 @ 7.0% cap · market cap 4.50%
Second Best
Warehouse
$562.8K
$492.4K – $656.6K
NOI $39,394 @ 7.0% cap · market cap 3.94%
Theoretical Best
Office A
$912.4K
$798.3K – $1.06M
NOI $63,867 @ 7.0% cap · market cap 6.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
21
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 56537, MN
19,230
Population
9,498
Households
2
Avg Household Size
44
Median Age
30%
College-Educated
96%
High-School Grad
283.4 sq mi
ZIP Area
68
Density / Sq Mi
$62,279
Median Household Income
$40,272
Median Earnings
$840
Median Rent
$223,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Property includes offices, attached living quarters, an outbuilding, and paved parking.
Where is this flex space located?
The property is located at 3327 E Fir Avenue Fergus Falls, MN.
What is the asking price?
The asking price for this property is $999,900.
What are key features of this property?
This property features: Approximately 4,200 SF main building with four private offices and a conference room; Attached 1,200 SF living quarters with 3 bedrooms, 3/4 bathroom, laundry, and separate HVAC; 48x80 outbuilding with concrete floor, several offices, and 8 existing garage stalls
