Two-Story Office
For Sale
$5,750,000
550 W Burnsville Parkway, Burnsville, MN 55337
Commercial Sale, Burnsville, MN
Property Size20,217 SF
Lot Size1.13 Acres
Price / SF$284.41
Days on Market31
Property Features for 550 W Burnsville Parkway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business/Commercial
Parking features
Parking Lot
Exterior features
Brick Veneer
Subdivision
Glass Service Co. building
High school district
Burnsville-Eagan-Savage
Directions
Burnsville Parkway and 35W
Standard status
Active
APN
021147501010
Lot size
1.13 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
90228
Utilities
Heating system
Forced Air
Amenities
landscaped property
Building Details
Year built
2007
Listing Agency:
Keller Williams Realty Integrity Lakes
(612) 821-7400
Listed By:
Chad E Heer · License #40427410
(612) 821-7400
Added: Jul 30
Changed: Aug 27
Last Checked: Aug 29 at 12:06PM
MLS# 7118948
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.
The property is a 20,217 SF, two-story office building constructed in 2007. Four tenants occupy the building, including Old National Bank on the main floor with a customer drive-through. Brick veneer, forced-air heating, a parking lot, and landscaped grounds are among the existing improvements.
Located at 550 W Burnsville Parkway in Burnsville, the property sits at the 35W intersection and records over 11,300 vehicles per day. The site contains 1.126 acres and is zoned Transit-Oriented Development (TOD), with over 54 parking stalls serving the building.
Located at 550 W Burnsville Parkway in Burnsville, the property sits at the 35W intersection and records over 11,300 vehicles per day. The site contains 1.126 acres and is zoned Transit-Oriented Development (TOD), with over 54 parking stalls serving the building.
Key Highlights
- 20,217 SF two‑story office building constructed in 2007
- Four‑tenant property with Old National Bank occupying the main floor
- Customer drive‑through serving the bank tenant
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
Property Profile
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 - Four-tenant office property with TOD zoning, a bank drive-through, and on-site parking.
Where is this office building located?
The property is located at 550 W Burnsville Parkway 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 constructed in 2007; Four‑tenant property with Old National Bank occupying the main floor; Customer drive‑through serving the bank tenant
