Renovated Flex Space with Loading
For Sale
Contact for pricing
4950 78th St W, Edina, MN 55435
Furnished office, showroom, and warehouse configuration with on-site parking and direct access to major highways.
Property Size12,061 SF
Lot Size1.58 Acres
Price / SF$206.87
Days on Market50
Property Features for 4950 78th St W
General Information
Standard status
Active
Size
12,061 SF
Total Parking Spaces
20
Lot size
1.58 Acres
Property subtype
INDUSTRIAL
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Furnished
Yes
Dock-High Doors
1
Amenities
Private outdoor deck
Building Details
Buildings
1
Building Size
12,061 SF
Listing Agency:
Kenwood Commercial
(612) 242-8820
Listed By:
Mike Doyle
(612) 242-8820
Source:
Moodyscre
Added: Jul 14
Changed: Aug 30
Last Checked: Aug 31 at 3:20PM
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 Kenwood Commercial
Investment Insights
Based on property information with market context.
This fully renovated flex property combines office, showroom, technology, service, and warehouse functions within a 12,061-square-foot building on 1.58 acres. The facility is fully furnished and includes one loading dock for shipping and receiving, along with a private outdoor deck suited to employee gatherings, client events, or outdoor meetings.
The property offers immediate access to I-494 and MN 100 through West 78th Street and Normandale Boulevard. I-494 carries traffic counts of 163,000 vpd, and building signage is visible from the interstate. The surrounding area includes restaurants, hotels, shopping, and business services.
On-site parking includes 20 spaces, with easement rights for 20+ additional spaces. Flexible occupancy options range from a single office or workstation to the full building.
The property offers immediate access to I-494 and MN 100 through West 78th Street and Normandale Boulevard. I-494 carries traffic counts of 163,000 vpd, and building signage is visible from the interstate. The surrounding area includes restaurants, hotels, shopping, and business services.
On-site parking includes 20 spaces, with easement rights for 20+ additional spaces. Flexible occupancy options range from a single office or workstation to the full building.
Key Highlights
- 12,061 SF office/warehouse facility on 1.58 acres
- Fully renovated and furnished flex property
- 20 on‑site parking spaces plus easement rights for 20+ additional spaces
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
$159,105
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
6.38%
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%
$3,182,100
$3.2M
Cap Rate 7%
$2,272,929
$2.3M
Cap Rate 9%
$1,767,833
$1.8M
Market Conditions
NOI Build-Up for 12,061 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
$195.4K $16.20/SF
− Vacancy
−$8.2K −$0.68/SF
EGI
$187.2K $15.52/SF
− OpEx
−$28.1K −$2.33/SF
NOI
$159.1K $13.19/SF
Area
Hennepin County, MN
Vacancy
4.20%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
15.00%
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%
$3,182,100
Cap Rate 7%
$2,272,929
Cap Rate 9%
$1,767,833
Alternative Uses
Best Use
Warehouse
$2.27M
$1.99M – $2.65M
NOI $159,105 @ 7.0% cap · market cap 6.38%
Second Best
Office B
$2.05M
$1.79M – $2.39M
NOI $143,223 @ 7.0% cap · market cap 5.74%
Theoretical Best
Office A
$2.88M
$2.52M – $3.36M
NOI $201,425 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Dock-high doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,651
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 55435, MN
14,170
Population
8,218
Households
1.7
Avg Household Size
45
Median Age
61%
College-Educated
97%
High-School Grad
3.0 sq mi
ZIP Area
4,723
Density / Sq Mi
$75,829
Median Household Income
$61,848
Median Earnings
$1,716
Median Rent
$340,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Old Southern BBQ Catering — 5255 Edina Industrial Blvd, Minneapolis, MN 55439
- The Preschool Pantry — 5223 W 73rd St, Edina, MN 55439
Frequently Asked Questions
What type of property is this?
Flex space - Furnished office, showroom, and warehouse configuration with on-site parking and direct access to major highways.
Where is this flex space located?
The property is located at 4950 78th St W Edina, MN.
What is the asking price?
The asking price for this property is $2,495,000.
What are key features of this property?
This property features: 12,061 SF office/warehouse facility on 1.58 acres; Fully renovated and furnished flex property; 20 on‑site parking spaces plus easement rights for 20+ additional spaces
