Class A Office Building with
For Sale
Contact for pricing
550 Burnsville Pkwy, Burnsville, MN 55337
Class A two-story office building with a banking drive-through and Transit-Oriented Development zoning on Burnsville Pkwy.
Property Size20,217 SF
Price / SF$284.41
Days on Market25
Property Features for 550 Burnsville Pkwy
General Information
Standard status
Active
Size
20,217 SF
Class
Class A
Property subtype
OFFICE
Zoning
TOD
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
drive-through
landscaped property
Building Details
Year Built
2007
Buildings
1
Stories
2
Building Size
20,217 SF
Tenancy
Multi
Listing Agency:
KW Commercial Minneapolis
(612) 963-5147
Listed By:
Chad Heer, CCIM · License #40427410
(612) 963-5147
Source:
Moodyscre
Added: Jul 16
Changed: Aug 8
Last Checked: Aug 9 at 12:18PM
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 KW Commercial Minneapolis
Investment Insights
Based on property information with market context.
Class A two-story office building totaling 20,217 SF, built in 2007. The property is configured with 4 tenants, providing a mix anchored by a primary banking tenant, Old National Bank, on the main floor with a customer drive-through.
Zoned Transit-Oriented Development (TOD), the site is located on Burnsville Pkwy at the 35W intersection. Traffic and visibility are supported by over 11,300 vehicles per day.
On-site parking includes over 54 stalls, and the property is described as landscaped. The combination of TOD zoning, prominent frontage on Burnsville Pkwy, and the presence of a drive-through banking use supports a practical tenant and customer experience for office-focused occupants.
Zoned Transit-Oriented Development (TOD), the site is located on Burnsville Pkwy at the 35W intersection. Traffic and visibility are supported by over 11,300 vehicles per day.
On-site parking includes over 54 stalls, and the property is described as landscaped. The combination of TOD zoning, prominent frontage on Burnsville Pkwy, and the presence of a drive-through banking use supports a practical tenant and customer experience for office-focused occupants.
Key Highlights
- 20,217 SF, two‑story Class A office building built in 2007
- 4‑tenant configuration anchored by Old National Bank on the main floor
- Old National Bank drive‑through for customer access
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
$262,285
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
4.56%
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%
$5,245,700
$5.2M
Cap Rate 7%
$3,746,929
$3.7M
Cap Rate 9%
$2,914,278
$2.9M
Market Conditions
NOI Build-Up for 20,217 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
$363.9K $18.00/SF
− Vacancy
−$14.2K −$0.70/SF
EGI
$349.7K $17.30/SF
− OpEx
−$87.4K −$4.32/SF
NOI
$262.3K $12.97/SF
Area
Dakota County, MN
Vacancy
3.90%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$5,245,700
Cap Rate 7%
$3,746,929
Cap Rate 9%
$2,914,278
Alternative Uses
Best Use
Specialty Retail
$3.75M
$3.28M – $4.37M
NOI $262,285 @ 7.0% cap · market cap 4.56%
Second Best
Office B
$3.58M
$3.13M – $4.18M
NOI $250,779 @ 7.0% cap · market cap 4.36%
Theoretical Best
Healthcare Medical
$4.98M
$4.35M – $5.80M
NOI $348,258 @ 7.0% cap · market cap 6.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
977
Businesses Nearby
Explore this area
Business Placement
Demographics for 55337, MN
47,333
Population
19,695
Households
2.4
Avg Household Size
37
Median Age
39%
College-Educated
93%
High-School Grad
18.7 sq mi
ZIP Area
2,531
Density / Sq Mi
$81,641
Median Household Income
$46,602
Median Earnings
$1,463
Median Rent
$327,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Class A two-story office building with a banking drive-through and Transit-Oriented Development zoning on Burnsville Pkwy.
Where is this office building located?
The property is located at 550 Burnsville Pkwy Burnsville, MN.
What is the asking price?
The asking price for this property is $5,750,000.
What are key features of this property?
This property features: 20,217 SF, two‑story Class A office building built in 2007; 4‑tenant configuration anchored by Old National Bank on the main floor; Old National Bank drive‑through for customer access
