Building Details

Year Built 1984

Buildings 1

Building Size 1,200 SF

Construction pole barn

Listing Agency: Keller Williams Realty Professionals

Listed By: Hans Woelfle Show Phone

Source: Searchhousesnow

Added: Sep 18 Last Checked: Sep 24 at 11:52AM

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Investment Insights

Based on property information with market context.

This flex-space property includes a 1,200-square-foot, 30-by-40-foot pole barn constructed in 1984. The building contains an office, half bath, showroom, and garage area, creating a compact combination of business and operational space. A fenced back lot adds secured outdoor area, while customer and staff parking is available in front of the building.

The property occupies 0.70 acres along Highway 47, just north of Isle, Minnesota. Its setting is near Mille Lacs Lake and several surrounding lakes. The site may accommodate an owner-operated business or other commercial use consistent with applicable requirements.

Key Highlights

• 1,200‑square‑foot pole barn on a 0.70‑acre commercial property
• 30‑by‑40‑foot building constructed in 1984
• Interior includes an office, half bath, showroom, and garage area

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

$16,272

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

6.78%

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%

$325,440 $325.4K

Cap Rate 7%

$232,457 $232.5K

Cap Rate 9%

$180,800 $180.8K

Market Conditions

NOI Build-Up for 1,200 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

$26.4K $21.96/SF

− Vacancy

−$1.3K −$1.10/SF

EGI

$25.0K $20.86/SF

− OpEx

−$8.8K −$7.30/SF

NOI

$16.3K $13.56/SF

Area

Mille Lacs 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%

$325,440

Cap Rate 7%

$232,457

Cap Rate 9%

$180,800

Alternative Uses

Best Use

Flex RnD

$232.5K

$203.4K – $271.2K (±1% cap)

NOI $16,272 @ 7.0% cap · market cap 6.78%

Second Best

Warehouse

$226.1K

$197.9K – $263.8K (±1% cap)

NOI $15,830 @ 7.0% cap · market cap 6.60%

Theoretical Best

Office A

$286.3K

$250.5K – $334.0K (±1% cap)

NOI $20,041 @ 7.0% cap · market cap 8.35%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Big Box & Wholesale Store Computer & Electronic Repair Building Supply Food Market Farmer's Market Travel Agency

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Fenced yard

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

21

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56342, MN

2,791

Population

2,409

Households

1.2

Avg Household Size

55

Median Age

18%

College-Educated

93%

High-School Grad

193.0 sq mi

ZIP Area

14

Density / Sq Mi

$61,313

Median Household Income

$41,350

Median Earnings

$836

Median Rent

$233,300

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Flex space - Office, showroom, garage, and half bath provide a practical commercial setup with fenced rear storage space.

Where is this flex space located?

The property is located at 42242 Highway 47 Isle, MN.

What is the asking price?

The asking price for this property is $239,900.

What are key features of this property?

This property features: 1,200‑square‑foot pole barn on a 0.70‑acre commercial property; 30‑by‑40‑foot building constructed in 1984; Interior includes an office, half bath, showroom, and garage area