Commercial Shop Space in
For Sale
$699,900
605 S 22nd St, Fort Dodge, IA 50501
4,000 SF commercial space with office and shop areas.
Property Size4,000 SF
Price / SF$174.98
Days on Market96
Property Features for 605 S 22nd St
General Information
Standard status
Active
Size
4,000 SF
Taxes and HOA fees
Annual Taxes
$10,406
Listing Agency:
Kesterson Realty Inc
(515) 571-2110
Listed By:
Todd Mccubbin · License #S66235000
(515) 571-2110
Source:
Exprealty
Added: May 27
Changed: Aug 28
Last Checked: Aug 29 at 11:57AM
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 Kesterson Realty Inc
Investment Insights
Based on property information with market context.
This 4,000 sq. ft. commercial space in Fort Dodge, Iowa, presents an opportunity for various business operations. The building features approximately 920 sq. ft. of finished office and waiting room space, suitable for customer-facing interactions and administrative tasks. The shop area provides space for mechanical work, storage, or light industrial uses. The property's location offers convenient access for servicing customers in the Fort Dodge area. This property is suitable for an established mechanic looking to expand, an independent operator ready for their own space, or a business in need of a functional shop setup.
Key Highlights
- 4,000 sq. ft. commercial shop space
- Includes 920 sq. ft. of finished office and waiting room space
- Lease rate: $1,800 per month
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
$41,524
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
5.93%
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%
$830,480
$830.5K
Cap Rate 7%
$593,200
$593.2K
Cap Rate 9%
$461,378
$461.4K
Market Conditions
NOI Build-Up for 4,000 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
$61.9K $15.48/SF
− Vacancy
−$2.6K −$0.65/SF
EGI
$59.3K $14.83/SF
− OpEx
−$17.8K −$4.45/SF
NOI
$41.5K $10.38/SF
Area
Webster County, IA
Vacancy
4.20%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
30.00%
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%
$830,480
Cap Rate 7%
$593,200
Cap Rate 9%
$461,378
Alternative Uses
Best Use
Retail
$593.2K
$519.1K – $692.1K
NOI $41,524 @ 7.0% cap · market cap 5.93%
Second Best
Industrial
$269.4K
$235.7K – $314.3K
NOI $18,856 @ 7.0% cap · market cap 2.69%
Theoretical Best
Office A
$720.8K
$630.7K – $841.0K
NOI $50,458 @ 7.0% cap · market cap 7.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
975
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 50501, IA
28,492
Population
13,198
Households
2.2
Avg Household Size
39
Median Age
20%
College-Educated
92%
High-School Grad
152.2 sq mi
ZIP Area
187
Density / Sq Mi
$66,130
Median Household Income
$36,934
Median Earnings
$779
Median Rent
$139,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Zig's Body & Paint — 1236 S 22nd St, Fort Dodge, IA 50501
- Tim's Automotive Tinting — 701 S 25th St, Fort Dodge, IA 50501
- BNB Motorwerks — 2926 8th Ave S Unit 14, Fort Dodge, IA 50501
- SGI Auto Repair Services LLC — 529 S 16th St, Fort Dodge, IA 50501
- Curt Bacon Body Shop — 1710 5th Ave S, Fort Dodge, IA 50501
Frequently Asked Questions
What type of property is this?
Auto shop - 4,000 SF commercial space with office and shop areas.
Where is this auto shop located?
The property is located at 605 S 22nd St Fort Dodge, IA.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: 4,000 sq. ft. commercial shop space; Includes 920 sq. ft. of finished office and waiting room space; Lease rate: $1,800 per month
