Customizable Flex Warehouse
For Sale
$235,000
403-940 Mckinley Pkwy, Delano, MN 55328
Phase 3 flex/warehouse units offer 5-inch concrete floors, 20-foot ceilings, and 14'x14' wide garage doors.
Property Size1,568 SF
Price / SF$149.87
Days on Market167
Property Features for 403-940 Mckinley Pkwy
General Information
Standard status
Active
Size
1,568 SF
Warehouse & Industrial
Clear Height
20 ft
Drive-In Doors
1
Heavy Power
Yes
Sprinkler System
Yes
Additional Details
Utilities to Site
Yes
Listing Agency:
eXp Realty
(320) 500-4397
Listed By:
Martin Turner
(612) 695-0167
Source:
Exprealty
Added: Mar 24
Changed: Sep 4
Last Checked: Sep 5 at 9:56AM
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.
For sale: a private Phase 3 flex/warehouse unit designed for office/warehouse, workshop, showroom, or car garage use. Units feature 5-inch concrete floors with floor drains and 20-foot high ceilings, along with commercial-grade windows and a 14-foot wide by 14-foot tall entry/garage door. The exterior is finished with attractive LP Smartside lap siding.
Each unit is equipped with fire suppression and in-floor radiant heating, and the space is wired for 3-phase power with AC. Units are plumbed with water and sewer and include roughed-in plumbing for a bathroom.
Additional customization options are available, including the ability to add a mezzanine level to increase interior area. Upgrades may include adding a bathroom, wet bar, kitchenette, or other built-in amenities as part of a full unit customization. Reservations are being taken for Phase 3, scheduled to be completed in late June 2026.
Each unit is equipped with fire suppression and in-floor radiant heating, and the space is wired for 3-phase power with AC. Units are plumbed with water and sewer and include roughed-in plumbing for a bathroom.
Additional customization options are available, including the ability to add a mezzanine level to increase interior area. Upgrades may include adding a bathroom, wet bar, kitchenette, or other built-in amenities as part of a full unit customization. Reservations are being taken for Phase 3, scheduled to be completed in late June 2026.
Key Highlights
- Phase 3 flex/warehouse units with 5‑inch concrete floors, 20‑foot ceilings, and 14' x 14' wide/tall garage doors
- Commercial‑grade windows plus LP Smartside lap siding
- In‑floor radiant heating and fire suppression; add a split system for additional heating and/or cooling
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
$21,263
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
9.05%
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%
$425,260
$425.3K
Cap Rate 7%
$303,757
$303.8K
Cap Rate 9%
$236,256
$236.3K
Market Conditions
NOI Build-Up for 1,568 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
$34.4K $21.96/SF
− Vacancy
−$1.7K −$1.10/SF
EGI
$32.7K $20.86/SF
− OpEx
−$11.4K −$7.30/SF
NOI
$21.3K $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%
$425,260
Cap Rate 7%
$303,757
Cap Rate 9%
$236,256
Alternative Uses
Best Use
Flex RnD
$303.8K
$265.8K – $354.4K
NOI $21,263 @ 7.0% cap · market cap 9.05%
Second Best
Warehouse
$295.5K
$258.6K – $344.8K
NOI $20,685 @ 7.0% cap · market cap 8.80%
Theoretical Best
Office A
$374.1K
$327.3K – $436.4K
NOI $26,186 @ 7.0% cap · market cap 11.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
20 ft
Clear height
1
Drive-in doors
Yes
Heavy power
Yes
Sprinkler system
Yes
Utilities to site
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 - Phase 3 flex/warehouse units offer 5-inch concrete floors, 20-foot ceilings, and 14'x14' wide garage doors.
Where is this flex space located?
The property is located at 403-940 Mckinley Pkwy Delano, MN.
What is the asking price?
The asking price for this property is $235,000.
What are key features of this property?
This property features: Phase 3 flex/warehouse units with 5‑inch concrete floors, 20‑foot ceilings, and 14' x 14' wide/tall garage doors; Commercial‑grade windows plus LP Smartside lap siding; In‑floor radiant heating and fire suppression; add a split system for additional heating and/or cooling
