Two-Story Office
For Sale
Contact for pricing
550 W Burnsville Pkwy, Burnsville, MN 55337
Two-story office property with four existing tenants and Transit-Oriented Development zoning.
Property Size20,217 SF
Price / SF$284.41
Days on Market24
Property Features for 550 W Burnsville Pkwy
General Information
Standard status
Active
Size
20,217 SF
Class
A
Total Parking Spaces
54
Property subtype
Office
Zoning
Transit-Oriented Development (TOD)
Building Details
Year Built
2007
Stories
2
Tenancy
Multi
Building Size
20,217 SF
Listing Agency:
CIG Brokerage
(612) 963-5147
Listed By:
Chad Heer · License #40427410
Source:
Crexi
Added: Jul 20
Changed: Aug 8
Last Checked: Aug 8 at 11:11AM
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 CIG Brokerage
Investment Insights
Based on property information with market context.
This two-story office building contains 20,217 SF and was constructed in 2007. The property is occupied by 4 tenants and is classified for Transit-Oriented Development (TOD), supporting an office-focused commercial use profile.
Located at 550 W Burnsville Pkwy in Burnsville, MN 55337, the property offers a defined office asset in the South Metro area. Its physical configuration and existing tenant occupancy provide a straightforward foundation for evaluating the building as an office property.
Located at 550 W Burnsville Pkwy in Burnsville, MN 55337, the property offers a defined office asset in the South Metro area. Its physical configuration and existing tenant occupancy provide a straightforward foundation for evaluating the building as an office property.
Key Highlights
- 20,217 SF two‑story office building
- 4 existing tenants
- Constructed in 2007
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
$250,779
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
4.36%
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%
$5,015,580
$5.0M
Cap Rate 7%
$3,582,557
$3.6M
Cap Rate 9%
$2,786,433
$2.8M
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
$451.2K $22.32/SF
− Vacancy
−$116.9K −$5.78/SF
EGI
$334.4K $16.54/SF
− OpEx
−$83.6K −$4.13/SF
NOI
$250.8K $12.40/SF
Area
Dakota County, MN
Vacancy
25.90%
Lease Rate
$22.32 /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%
$5,015,580
Cap Rate 7%
$3,582,557
Cap Rate 9%
$2,786,433
Alternative Uses
Best Use
Office B
$3.58M
$3.13M – $4.18M
NOI $250,779 @ 7.0% cap · market cap 4.36%
Second Best
—
—
no second resolved use
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
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 - Two-story office property with four existing tenants and Transit-Oriented Development zoning.
Where is this office building located?
The property is located at 550 W 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 office building; 4 existing tenants; Constructed in 2007
