Industrial Shop with Drive-In
For Sale
Contact for pricing
3839 Delaware Ave, Des Moines, IA 50313
Industrial shop zoned M-1 with heavy power, fenced outdoor storage, and two large open shop areas.
Property Size5,817 SF
Price / SF$150.42
Days on Market183
Property Features for 3839 Delaware Ave
General Information
Standard status
Active
Size
5,817 SF
Property subtype
INDUSTRIAL
Zoning
M-1
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Warehouse & Industrial
Drive-In Doors
1
Power
400 amps
Voltage
220 V
Heavy Power
Yes
Additional Details
Asking Price
$875,000
Amenities
Kitchenette
Building Details
Building Size
5,817 SF
Listing Agency:
KW Commercial
(515) 771-3299
Listed By:
Mick Grossman · License #S43534000
(515) 334-4900
Source:
Moodyscre
Added: Mar 19
Changed: Sep 6
Last Checked: Sep 16 at 8:25PM
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 KW Commercial
Investment Insights
Based on property information with market context.
Industrial shop totaling 5,817 SF with M-1 zoning, offering two large open shop areas suited for a range of industrial and light manufacturing uses. The building includes a 14’ drive-in door, floor drains, and existing air lines to support shop operations.
The property is equipped with 400 Amp / 220 Volt heavy power and includes three offices, three restrooms, and a kitchenette. A fenced outdoor storage area adds practical staging and materials storage for day-to-day work.
Access to I-35/80 is identified as a key feature, supporting convenient connectivity for service, deliveries, and employee commutes.
The property is equipped with 400 Amp / 220 Volt heavy power and includes three offices, three restrooms, and a kitchenette. A fenced outdoor storage area adds practical staging and materials storage for day-to-day work.
Access to I-35/80 is identified as a key feature, supporting convenient connectivity for service, deliveries, and employee commutes.
Key Highlights
- 5,817 SF industrial shop with M‑1 zoning
- 14’ drive‑in door plus two large open shop areas
- 400 Amp / 220 Volt heavy power
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
$32,595
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
3.73%
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%
$651,900
$651.9K
Cap Rate 7%
$465,643
$465.6K
Cap Rate 9%
$362,167
$362.2K
Market Conditions
NOI Build-Up for 5,817 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
$54.4K $9.36/SF
− Vacancy
−$4.3K −$0.74/SF
EGI
$50.1K $8.62/SF
− OpEx
−$17.6K −$3.02/SF
NOI
$32.6K $5.60/SF
Area
Des Moines, IA
Vacancy
7.90%
Lease Rate
$9.36 /SF/Yr
Expense Ratio
35.00%
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%
$651,900
Cap Rate 7%
$465,643
Cap Rate 9%
$362,167
Alternative Uses
Best Use
Flex RnD
$465.6K
$407.4K – $543.3K
NOI $32,595 @ 7.0% cap · market cap 3.73%
Second Best
Industrial
$340.7K
$298.1K – $397.5K
NOI $23,851 @ 7.0% cap · market cap 2.73%
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,283 @ 7.0% cap · market cap 11.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Heavy power
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
284
Businesses Nearby
Balanced
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Des Moines, IA
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial shop zoned M-1 with heavy power, fenced outdoor storage, and two large open shop areas.
Where is this flex space located?
The property is located at 3839 Delaware Ave Des Moines, IA.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 5,817 SF industrial shop with M‑1 zoning; 14’ drive‑in door plus two large open shop areas; 400 Amp / 220 Volt heavy power
