Flex Space Garage
For Sale
$246,250
721 Industrial Boulevard #D4, Watertown, MN 55388
Commercially zoned unit with insulated garage access, in-floor heat, and bathroom rough-in.
Property Size1,250 SF
Price / SF$197
Days on Market591
Property Features for 721 Industrial Boulevard #D4
General Information
Standard status
Active
Size
1,250 SF
Property subtype
Commercial
Zoning
Business/Commercial
Warehouse & Industrial
Drive-In Doors
1
Power
100 amps
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$504
Amenities
lawn care
snow removal
refuse
security
Building Details
Year Built
2023
Units
1
Listing Agency:
Edina Realty, Inc.
(952) 212-2374
Listed By:
Butcher Real Estate Team
(952) 212-2374
Source:
Ivyrealestategroup
Added: Dec 26, 2024
Changed: Aug 3
Last Checked: Aug 9 at 12:36PM
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 Edina Realty, Inc.
Investment Insights
Based on property information with market context.
This 2023 flex space unit offers 1,250 square feet within a 25' x 50' garage-condo configuration. The improvements include sheetrocked walls, a tin ceiling, an insulated 16' W x 14' H overhead door with opener, two LED lights, in-floor heat, 100-amp electrical service, a floor trench drain, and a fire suppression system. The space is also structured for a future mezzanine and includes a bathroom rough-in with shower, LP siding, an asphalt-shingled roof, concrete aprons, and an asphalt lot.
Zoned Business/Commercial for commercial and multi-use activity, the property welcomes businesses. Association services include lawn care, snow removal, refuse, and security. Planned shared amenities include entrance gates, security fencing, a wash bay, dump station, and lounge.
Zoned Business/Commercial for commercial and multi-use activity, the property welcomes businesses. Association services include lawn care, snow removal, refuse, and security. Planned shared amenities include entrance gates, security fencing, a wash bay, dump station, and lounge.
Key Highlights
- 1,250 SF unit measuring 25' x 50'
- 16' W x 14' H insulated garage door with opener
- In‑floor heat and 100‑amp electrical service
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
$16,950
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
6.88%
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%
$339,000
$339.0K
Cap Rate 7%
$242,143
$242.1K
Cap Rate 9%
$188,333
$188.3K
Market Conditions
NOI Build-Up for 1,250 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
$27.5K $21.96/SF
− Vacancy
−$1.4K −$1.10/SF
EGI
$26.1K $20.86/SF
− OpEx
−$9.1K −$7.30/SF
NOI
$17.0K $13.56/SF
Area
Carver County, MN
Vacancy
5.00%
Lease Rate
$21.96 /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%
$339,000
Cap Rate 7%
$242,143
Cap Rate 9%
$188,333
Alternative Uses
Best Use
Flex RnD
$242.1K
$211.9K – $282.5K
NOI $16,950 @ 7.0% cap · market cap 6.88%
Second Best
Warehouse
$235.6K
$206.1K – $274.8K
NOI $16,490 @ 7.0% cap · market cap 6.70%
Theoretical Best
Office A
$298.2K
$261.0K – $347.9K
NOI $20,876 @ 7.0% cap · market cap 8.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Sprinkler system
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Commercially zoned unit with insulated garage access, in-floor heat, and bathroom rough-in.
Where is this flex space located?
The property is located at 721 Industrial Boulevard #D4 Watertown, MN.
What is the asking price?
The asking price for this property is $246,250.
What are key features of this property?
This property features: 1,250 SF unit measuring 25' x 50'; 16' W x 14' H insulated garage door with opener; In‑floor heat and 100‑amp electrical service
