Customizable Flex Warehouse
For Sale
$305,000
402-940 Mckinley Pkwy, Delano, MN 55328
Private flex unit with 20’ ceilings, 14’x14’ garage door, radiant heat, and 3-phase power for light industrial or showroom use.
Property Size2,041 SF
Price / SF$149.44
Days on Market152
Property Features for 402-940 Mckinley Pkwy
General Information
Standard status
Active
Size
2,041 SF
Warehouse & Industrial
Clear Height
20 ft
Heavy Power
Yes
Listing Agency:
eXp Realty
(612) 695-0167
Listed By:
Martin Turner
(612) 695-0167
Source:
Exprealty
Added: Mar 23
Changed: Aug 13
Last Checked: Aug 20 at 12:44PM
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 eXp Realty
Investment Insights
Based on property information with market context.
This for-sale Phase 3 private unit can be customized as an office/warehouse, workshop, showroom, or car cave/dream garage. The space includes 5-inch concrete floors with floor drains, 20-foot high ceilings, and commercial-grade windows. Access features a 14’ wide x 14’ tall entry door and a 14’ wide x 14’ tall garage door, and the exterior includes attractive LP Smartside lap siding.
The unit is being built as part of Phase 3 at 402-940 McKinley Pkwy in Delano, Minnesota, with completion targeted for late June 2026. The design includes fire suppression, in-floor radiant heating, and the option to add a split system for additional heating and/or cooling. The unit is wired with 3-phase power and AC, and it is plumbed with water and sewer.
Inside, you’ll find a roughed-in bathroom, with upgrades available to further tailor the layout, including the addition of a bathroom, wet bar, kitchenette, or other built-ins. A mezzanine level can be added to increase area by an additional 608+ square feet, bringing total area to 2,041+ square feet. Existing systems and utilities support a range of light commercial uses, while customization allows the next owner to match the space to their operating needs.
The unit is being built as part of Phase 3 at 402-940 McKinley Pkwy in Delano, Minnesota, with completion targeted for late June 2026. The design includes fire suppression, in-floor radiant heating, and the option to add a split system for additional heating and/or cooling. The unit is wired with 3-phase power and AC, and it is plumbed with water and sewer.
Inside, you’ll find a roughed-in bathroom, with upgrades available to further tailor the layout, including the addition of a bathroom, wet bar, kitchenette, or other built-ins. A mezzanine level can be added to increase area by an additional 608+ square feet, bringing total area to 2,041+ square feet. Existing systems and utilities support a range of light commercial uses, while customization allows the next owner to match the space to their operating needs.
Key Highlights
- Private Phase 3 flex unit options, completed in late June 2026, designed for light industrial or showroom use
- 20' high ceilings with 5" concrete floors featuring floor drains
- 14' wide x 14' tall commercial entry/garage door and commercial‑grade windows
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
$27,677
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
9.07%
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%
$553,540
$553.5K
Cap Rate 7%
$395,386
$395.4K
Cap Rate 9%
$307,522
$307.5K
Market Conditions
NOI Build-Up for 2,041 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
$44.8K $21.96/SF
− Vacancy
−$2.2K −$1.10/SF
EGI
$42.6K $20.86/SF
− OpEx
−$14.9K −$7.30/SF
NOI
$27.7K $13.56/SF
Area
Wright County, MN
Vacancy
5.00%
Lease Rate
$21.96 /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%
$553,540
Cap Rate 7%
$395,386
Cap Rate 9%
$307,522
Alternative Uses
Best Use
Flex RnD
$395.4K
$346.0K – $461.3K
NOI $27,677 @ 7.0% cap · market cap 9.07%
Second Best
Warehouse
$384.6K
$336.6K – $448.7K
NOI $26,924 @ 7.0% cap · market cap 8.83%
Theoretical Best
Office A
$486.9K
$426.1K – $568.1K
NOI $34,086 @ 7.0% cap · market cap 11.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20 ft
Clear height
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
12
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55328, MN
9,729
Population
3,684
Households
2.6
Avg Household Size
39
Median Age
42%
College-Educated
98%
High-School Grad
44.9 sq mi
ZIP Area
217
Density / Sq Mi
$118,036
Median Household Income
$65,990
Median Earnings
$927
Median Rent
$382,600
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Private flex unit with 20’ ceilings, 14’x14’ garage door, radiant heat, and 3-phase power for light industrial or showroom use.
Where is this flex space located?
The property is located at 402-940 Mckinley Pkwy Delano, MN.
What is the asking price?
The asking price for this property is $305,000.
What are key features of this property?
This property features: Private Phase 3 flex unit options, completed in late June 2026, designed for light industrial or showroom use; 20' high ceilings with 5" concrete floors featuring floor drains; 14' wide x 14' tall commercial entry/garage door and commercial‑grade windows
