Neighborhood Retail
For Sale
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3523 6th Ave, Des Moines, IA 50313
Retail property with MX1 zoning at a signalized intersection along 6th Avenue.
Property Size7,080 SF
Price / SF$254.24
Days on Market142
Property Features for 3523 6th Ave
General Information
Standard status
Active
Size
7,080 SF
Property subtype
Retail
Zoning
MX1
Occupancy
100%
Lease Type
NNN
Building Details
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
LOCATE Commercial Real Estate
(515) 460-0624
Listed By:
Keith Olson · License #IA B57438000
Source:
Crexi
Added: Apr 13
Changed: Aug 31
Last Checked: Aug 31 at 2:33AM
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 LOCATE Commercial Real Estate
Investment Insights
Based on property information with market context.
This 7,080-square-foot retail property is located at 3523 6th Ave in Des Moines, Iowa. The asset is positioned within the Highland Park Historic Business District and classified under MX1 zoning.
The property occupies a signalized intersection along 6th Avenue, providing direct access and exposure within a dense residential trade area. Its setting supports neighborhood-oriented retail use in an established commercial district.
The property occupies a signalized intersection along 6th Avenue, providing direct access and exposure within a dense residential trade area. Its setting supports neighborhood-oriented retail use in an established commercial district.
Key Highlights
- 7,080‑square‑foot retail property
- MX1 zoning
- Signalized intersection along 6th Avenue
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
$68,765
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
3.82%
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%
$1,375,300
$1.4M
Cap Rate 7%
$982,357
$982.4K
Cap Rate 9%
$764,056
$764.1K
Market Conditions
NOI Build-Up for 7,080 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
$106.2K $15.00/SF
− Vacancy
−$8.0K −$1.13/SF
EGI
$98.2K $13.88/SF
− OpEx
−$29.5K −$4.16/SF
NOI
$68.8K $9.71/SF
Area
Des Moines, IA
Vacancy
7.50%
Lease Rate
$15.00 /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%
$1,375,300
Cap Rate 7%
$982,357
Cap Rate 9%
$764,056
Alternative Uses
Best Use
Retail
$982.4K
$859.6K – $1.15M
NOI $68,765 @ 7.0% cap · market cap 3.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.74M
$1.53M – $2.03M
NOI $122,057 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
464
Businesses Nearby
Explore this area
Business Placement
Demographics for 50313, IA
17,723
Population
7,674
Households
2.3
Avg Household Size
37
Median Age
16%
College-Educated
86%
High-School Grad
18.1 sq mi
ZIP Area
979
Density / Sq Mi
$64,077
Median Household Income
$36,284
Median Earnings
$1,077
Median Rent
$161,800
Median Home Value
Market
Vacancy Rate% for Retail in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail property with MX1 zoning at a signalized intersection along 6th Avenue.
Where is this retail space located?
The property is located at 3523 6th Ave Des Moines, IA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 7,080‑square‑foot retail property; MX1 zoning; Signalized intersection along 6th Avenue
