Industrial Flex Building with
For Sale
Contact for pricing
5900 Northwest 2nd Street, Des Moines, IA 50313
Two-building industrial flex property offers warehouse and office space with drive-in doors and mezzanine storage.
Property Size9,840 SF
Price / SF$101.63
Days on Market71
Property Features for 5900 Northwest 2nd Street
General Information
Standard status
Active
Size
9,840 SF
Total Parking Spaces
8
Property subtype
Industrial
Zoning
GC
Occupancy
100%
Lease Type
NNN
Additional Details
Highway Access
Yes
Drive-In Doors
5
Amenities
kitchenette
mezzanine storage
Building Details
Year Built
2015
Buildings
2
Listing Agency:
Denny Elwell Company
Listed By:
Carson Hughes · License #IA S60432000
(515) 963-7143
Source:
Crexi
Added: Jun 30
Changed: Sep 8
Last Checked: Sep 8 at 5:13AM
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 Denny Elwell Company
Investment Insights
Based on property information with market context.
This for-sale industrial flex property includes two separate buildings totaling approximately 9,840 square feet of warehouse and office space. Building 1 offers 5,638 square feet of warehouse space with 3 drive-in doors, plus 1,052 square feet of office space with two offices and a kitchenette. Building 1 also includes a floor drain and mezzanine storage above the offices, with a lease through 10.31.27.
Building 2 includes 2,600 square feet of warehouse space with 2 drive-in doors and 550 square feet of office space, also leased through 10.31.27. The property is located minutes from Interstate 35/80 and major Des Moines transportation routes, supporting convenient employee, customer, and logistics access.
Both buildings are suited for flexible industrial operations, with dedicated office areas and warehouse access via drive-in doors.
Building 2 includes 2,600 square feet of warehouse space with 2 drive-in doors and 550 square feet of office space, also leased through 10.31.27. The property is located minutes from Interstate 35/80 and major Des Moines transportation routes, supporting convenient employee, customer, and logistics access.
Both buildings are suited for flexible industrial operations, with dedicated office areas and warehouse access via drive-in doors.
Key Highlights
- Two‑building industrial flex property with approximately 9,840 SF of flexible warehouse and office space
- Building 1 includes 5,638 SF warehouse, 3 drive‑in doors, and 1,052 SF office with 2 offices and a kitchenette
- Building 1 features mezzanine storage space above the offices and a floor drain
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
$55,137
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
5.51%
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%
$1,102,740
$1.1M
Cap Rate 7%
$787,671
$787.7K
Cap Rate 9%
$612,633
$612.6K
Market Conditions
NOI Build-Up for 9,840 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
$92.1K $9.36/SF
− Vacancy
−$7.3K −$0.74/SF
EGI
$84.8K $8.62/SF
− OpEx
−$29.7K −$3.02/SF
NOI
$55.1K $5.60/SF
Area
Des Moines, IA
Vacancy
7.90%
Lease Rate
$9.36 /SF/Yr
Expense Ratio
35.00%
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%
$1,102,740
Cap Rate 7%
$787,671
Cap Rate 9%
$612,633
Alternative Uses
Best Use
Flex RnD
$787.7K
$689.2K – $919.0K
NOI $55,137 @ 7.0% cap · market cap 5.51%
Second Best
Warehouse
$660.3K
$577.7K – $770.3K
NOI $46,219 @ 7.0% cap · market cap 4.62%
Theoretical Best
Office A
$2.42M
$2.12M – $2.83M
NOI $169,638 @ 7.0% cap · market cap 16.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Drive-in doors
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
481
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50313, IA
17,723
Population
7,674
Households
2.3
Avg Household Size
37
Median Age
16%
College-Educated
86%
High-School Grad
18.1 sq mi
ZIP Area
979
Density / Sq Mi
$64,077
Median Household Income
$36,284
Median Earnings
$1,077
Median Rent
$161,800
Median Home Value
Market
Vacancy Rate% for Industrial in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two-building industrial flex property offers warehouse and office space with drive-in doors and mezzanine storage.
Where is this flex space located?
The property is located at 5900 Northwest 2nd Street Des Moines, IA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Two‑building industrial flex property with approximately 9,840 SF of flexible warehouse and office space; Building 1 includes 5,638 SF warehouse, 3 drive‑in doors, and 1,052 SF office with 2 offices and a kitchenette; Building 1 features mezzanine storage space above the offices and a floor drain
