Two-Suite Office
For Sale
$1,750,000
4200 Egan Drive, Savage, MN 55378
Commercial Sale, Savage, MN
Property Size8,976 SF
Lot Size1.02 Acres
Price / SF$194.96
Days on Market79
Property Features for 4200 Egan Drive
General Information
Property type
Commercial Sale
Property subtype
Office
Parking features
Parking Lot
Accessibility
Accessible Approach with Ramp
Subdivision
Highview Center
High school district
Burnsville-Eagan-Savage
Directions
At the N.E. Corner of Egan Dr. and Glendale Rd.
Standard status
Active
APN
261090030
Lot size
1.02 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
48288
Utilities
Heating system
Forced Air
Building Details
Year built
1999
Listing Agency:
RE/MAX Advantage Plus · RE/MAX International
(763) 755-1100
Listed By:
Jeremy Feldmann · License #62417
(952) 226-7700
Added: Jul 7
Changed: Sep 21
Last Checked: Sep 23 at 11:06PM
MLS# 7105181
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 4200 Egan Drive in Savage, Minnesota, this 8,976-square-foot office building was constructed in 1999 and occupies 1.02 acres. The single-level layout is configured for two users, with a professional setting supported by forced-air heating and a parking lot.
Suite 1 is occupied by an eye clinic that has extended its lease for another 5-year term. Suite 2 is available for lease and includes seven windowed offices, two conference rooms, a bullpen area, and a private entrance. The property also provides an accessible approach with a ramp, offering a practical configuration for office and medical office operations.
Suite 1 is occupied by an eye clinic that has extended its lease for another 5-year term. Suite 2 is available for lease and includes seven windowed offices, two conference rooms, a bullpen area, and a private entrance. The property also provides an accessible approach with a ramp, offering a practical configuration for office and medical office operations.
Key Highlights
- 8,976 SF single‑level office building on 1.02 acres
- Two‑user layout with two separate suites
- Suite 1 occupied by an eye clinic with another 5‑year lease term
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
$118,752
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
6.79%
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%
$2,375,040
$2.4M
Cap Rate 7%
$1,696,457
$1.7M
Cap Rate 9%
$1,319,467
$1.3M
Market Conditions
NOI Build-Up for 8,976 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
$226.2K $25.20/SF
− Vacancy
−$28.3K −$3.15/SF
EGI
$197.9K $22.05/SF
− OpEx
−$79.2K −$8.82/SF
NOI
$118.8K $13.23/SF
Area
Scott County, MN
Vacancy
12.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$2,375,040
Cap Rate 7%
$1,696,457
Cap Rate 9%
$1,319,467
Alternative Uses
Best Use
Healthcare Medical
$1.70M
$1.48M – $1.98M
NOI $118,752 @ 7.0% cap · market cap 6.79%
Second Best
Office B
$1.59M
$1.39M – $1.86M
NOI $111,341 @ 7.0% cap · market cap 6.36%
Theoretical Best
Office A
$2.14M
$1.87M – $2.50M
NOI $149,904 @ 7.0% cap · market cap 8.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
369
Businesses Nearby
Explore this area
Business Placement
Demographics for 55378, MN
31,906
Population
11,857
Households
2.7
Avg Household Size
37
Median Age
51%
College-Educated
97%
High-School Grad
14.3 sq mi
ZIP Area
2,231
Density / Sq Mi
$122,237
Median Household Income
$58,171
Median Earnings
$1,608
Median Rent
$393,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Single-level property combines an established eye clinic tenancy with a separately available office suite.
Where is this office building located?
The property is located at 4200 Egan Drive Savage, MN.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 8,976 SF single‑level office building on 1.02 acres; Two‑user layout with two separate suites; Suite 1 occupied by an eye clinic with another 5‑year lease term
