Customizable Commercial Units For
For Sale
$230,000
408-940 Mckinley Pkwy, Delano, MN
Private units customizable as office, warehouse, showroom, or garage.
Property Size1,568 SF
Price / SF$146.68
Days on Market157
Property Features for 408-940 Mckinley Pkwy
General Information
Standard status
Active
Size
1,568 SF
Listing Agency:
eXp Realty
(612) 695-0167
Listed By:
Martin Turner
(612) 695-0167
Source:
Exprealty
Added: Mar 24
Changed: Aug 20
Last Checked: Aug 26 at 11:07AM
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.
Private units are available for purchase, customizable as an office, warehouse, workshop, showroom, or car cave/dream garage. An additional 448 or more square feet of space can be added by including a mezzanine level, bringing the total area to over 1,568 square feet. These high-quality units feature 5-inch concrete floors with floor drains and 20-foot high ceilings. Commercial-grade windows, an entry door, and a 14-foot wide by 14-foot tall garage door are included. The units are constructed with attractive LP Smartside lap siding and feature fire suppression with in-floor radiant heating. A split system can be added for additional heating and/or cooling. All units are wired with 3-phase power and AC, and plumbed with water and sewer. A roughed-in bathroom is included. Numerous upgrades are available, allowing for full customization of the unit. A bathroom, wet bar, kitchenette, or even a hot tub can be added. Reservations are currently being accepted for Phase 3, which is scheduled for completion in late June of 2026.
Key Highlights
- Customizable for office/warehouse, workshop, showroom, or car cave/dream garage.
- Potential to add a mezzanine level for 1,568+ SF of total space.
- High‑quality construction with 5” concrete floors and 20’ high ceilings.
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
$17,034
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
7.41%
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%
$340,680
$340.7K
Cap Rate 7%
$243,343
$243.3K
Cap Rate 9%
$189,267
$189.3K
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
$25.4K $16.20/SF
− Vacancy
−$1.1K −$0.68/SF
EGI
$24.3K $15.52/SF
− OpEx
−$7.3K −$4.66/SF
NOI
$17.0K $10.86/SF
Area
Wright County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$340,680
Cap Rate 7%
$243,343
Cap Rate 9%
$189,267
Alternative Uses
Best Use
Flex RnD
$303.8K
$265.8K – $354.4K
NOI $21,263 @ 7.0% cap · market cap 9.24%
Second Best
Industrial
$243.3K
$212.9K – $283.9K
NOI $17,034 @ 7.0% cap · market cap 7.41%
Theoretical Best
Office A
$374.1K
$327.3K – $436.4K
NOI $26,186 @ 7.0% cap · market cap 11.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
466
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Tables Ready Catering — 234 2nd St N, Delano, MN 55328
Frequently Asked Questions
What type of property is this?
Flex space - Private units customizable as office, warehouse, showroom, or garage.
Where is this flex space located?
The property is located at 408-940 Mckinley Pkwy Delano, MN.
What is the asking price?
The asking price for this property is $230,000.
What are key features of this property?
This property features: Customizable for office/warehouse, workshop, showroom, or car cave/dream garage.; Potential to add a mezzanine level for 1,568+ SF of total space.; High‑quality construction with **5” concrete floors** and **20’ high ceilings**.
