Flex Space with
For Sale
$197,500
721 Industrial Boulevard #B3, Watertown, MN 55388
Adjoining commercial units offer storage, workspace, and investment use with dedicated bathrooms and overhead doors.
Property Size1,490 SF
Price / SF$132.55
Days on Market142
Property Features for 721 Industrial Boulevard #B3
General Information
Standard status
Active
Size
1,490 SF
Property subtype
Commercial
Zoning
Business/Commercial
Taxes and HOA fees
Annual Taxes
$2,222
Building Details
Building Size
1,490 SF
Year Built
2022
Stories
1
Units
1
Listing Agency:
Compass
(612) 816-7537
Listed By:
Laura Hotvet
(612) 816-7537
Source:
Juverealestate
Added: Mar 21
Changed: Aug 7
Last Checked: Aug 8 at 1:06PM
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 Compass
Investment Insights
Based on property information with market context.
Units B3 and B4 at 721 Industrial Boulevard provide adjoining flex space within The Workshop of Watertown. Built in 2022, the property includes 1,490 square feet, 14' insulated overhead doors, 16'–20' vaulted ceilings, in-floor heat, A/C, LED lighting, 100-amp electrical service, a floor trench drain, fire suppression, and a 40' x 10' mezzanine. Each unit has its own bathroom. The exterior features LP siding, an asphalt roof, concrete aprons, and a paved lot.
The property is zoned Business/Commercial and offers access to Highways 7 and 12, with the Twin Cities a short drive away. Association services include lawn care, snow removal, refuse, and security.
The property is zoned Business/Commercial and offers access to Highways 7 and 12, with the Twin Cities a short drive away. Association services include lawn care, snow removal, refuse, and security.
Key Highlights
- Adjoining Units B3 & B4 with 1,490 square feet
- 14' insulated overhead doors and 16'–20' vaulted ceilings
- 40' x 10' mezzanine, floor trench drain, and fire suppression
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
$16,187
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
8.20%
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%
$323,740
$323.7K
Cap Rate 7%
$231,243
$231.2K
Cap Rate 9%
$179,856
$179.9K
Market Conditions
NOI Build-Up for 1,490 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
$24.1K $16.20/SF
− Vacancy
−$1.0K −$0.68/SF
EGI
$23.1K $15.52/SF
− OpEx
−$6.9K −$4.66/SF
NOI
$16.2K $10.86/SF
Area
Carver County, MN
Vacancy
4.20%
Lease Rate
$16.20 /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%
$323,740
Cap Rate 7%
$231,243
Cap Rate 9%
$179,856
Alternative Uses
Best Use
Flex RnD
$288.6K
$252.6K – $336.8K
NOI $20,205 @ 7.0% cap · market cap 10.23%
Second Best
Warehouse
$280.8K
$245.7K – $327.6K
NOI $19,656 @ 7.0% cap · market cap 9.95%
Theoretical Best
Office A
$355.5K
$311.1K – $414.7K
NOI $24,884 @ 7.0% cap · market cap 12.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55388, MN
5,984
Population
2,386
Households
2.5
Avg Household Size
39
Median Age
23%
College-Educated
96%
High-School Grad
37.6 sq mi
ZIP Area
159
Density / Sq Mi
$92,273
Median Household Income
$48,955
Median Earnings
$998
Median Rent
$333,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Adjoining commercial units offer storage, workspace, and investment use with dedicated bathrooms and overhead doors.
Where is this flex space located?
The property is located at 721 Industrial Boulevard #B3 Watertown, MN.
What is the asking price?
The asking price for this property is $197,500.
What are key features of this property?
This property features: Adjoining Units B3 & B4 with 1,490 square feet; 14' insulated overhead doors and 16'–20' vaulted ceilings; 40' x 10' mezzanine, floor trench drain, and fire suppression
