Managed Office
For Sale
Contact for pricing
5851 Cedar Lake Rd, St Louis Park, MN 55416
Flexible configuration supports owner occupancy, partial use, or continued leasing to existing tenants.
Property Size8,909 SF
Price / SF$151.53
Days on Market11
Property Features for 5851 Cedar Lake Rd
General Information
Standard status
Active
Size
8,909 SF
Property subtype
OFFICE
Additional Details
Highway Access
Yes
Listing Agency:
eXp Commercial
(612) 819-8285
Listed By:
Scott Naasz · License #40709913
(612) 819-8285
Source:
Moodyscre
Added: Aug 21
Changed: Aug 29
Last Checked: Aug 30 at 11:17PM
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 eXp Commercial
Investment Insights
Based on property information with market context.
This 8909-square-foot office condo offers a flexible configuration for business use, partial occupancy, or continued leasing to existing tenants. The property can accommodate an owner using the full space, combining business operations with leased area, or retaining the existing tenant arrangement. Professional management oversees the grounds and building systems, supporting a lower-maintenance ownership structure.
The property is located at 5851 Cedar Lake Road in St Louis Park, Minnesota. Its setting provides access to nearby dining and retail, along with Highway 100 and I-394. The office is positioned within a suburban business park environment while remaining connected to major regional routes.
The property is located at 5851 Cedar Lake Road in St Louis Park, Minnesota. Its setting provides access to nearby dining and retail, along with Highway 100 and I-394. The office is positioned within a suburban business park environment while remaining connected to major regional routes.
Key Highlights
- 8909‑square‑foot office condo
- Flexible options for full occupancy, partial owner use, or continued leasing
- Existing tenants in place
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
$111,333
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
8.25%
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%
$2,226,660
$2.2M
Cap Rate 7%
$1,590,471
$1.6M
Cap Rate 9%
$1,237,033
$1.2M
Market Conditions
NOI Build-Up for 8,909 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
$186.0K $20.88/SF
− Vacancy
−$37.6K −$4.22/SF
EGI
$148.4K $16.66/SF
− OpEx
−$37.1K −$4.17/SF
NOI
$111.3K $12.50/SF
Area
Minneapolis, MN
Vacancy
20.20%
Lease Rate
$20.88 /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%
$2,226,660
Cap Rate 7%
$1,590,471
Cap Rate 9%
$1,237,033
Alternative Uses
Best Use
Office B
$1.59M
$1.39M – $1.86M
NOI $111,333 @ 7.0% cap · market cap 8.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.13M
$1.86M – $2.48M
NOI $148,785 @ 7.0% cap · market cap 11.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,142
Businesses Nearby
Explore this area
Business Placement
Demographics for 55416, MN
34,129
Population
19,197
Households
1.8
Avg Household Size
36
Median Age
73%
College-Educated
98%
High-School Grad
7.3 sq mi
ZIP Area
4,675
Density / Sq Mi
$105,926
Median Household Income
$70,993
Median Earnings
$1,701
Median Rent
$457,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Flexible configuration supports owner occupancy, partial use, or continued leasing to existing tenants.
Where is this office units located?
The property is located at 5851 Cedar Lake Rd St Louis Park, MN.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 8909‑square‑foot office condo; Flexible options for full occupancy, partial owner use, or continued leasing; Existing tenants in place
