Deeded Flex Storage
For Sale
Contact for pricing
721 Industrial Blvd, Watertown, MN 55388
Built in 2022, Units B3 and B4 are deeded flex storage spaces suitable for vehicles, boats, or workshop use.
Property Size1,490 SF
Price / SF$132.55
Days on Market365
Property Features for 721 Industrial Blvd
General Information
Standard status
Active
Size
1,490 SF
Property subtype
INDUSTRIAL
Building Details
Year Built
2022
Listing Agency:
Compass Real Estate
(952) 454-6563
Listed By:
Laura Hotvet
(612) 816-7537
Source:
Moodyscre
Added: Sep 11, 2025
Changed: Aug 8
Last Checked: Sep 9 at 6:40AM
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 Real Estate
Investment Insights
Based on property information with market context.
Units B3 and B4 at The Workshop of Watertown are flex storage/garage-condo style spaces built in 2022. The units are designed for secure, versatile use, with configuration suited to storing items such as RVs, boats, and vehicles, as well as accommodating a workshop, studio, or business needs.
The property is located at 721 Industrial Blvd in Watertown, MN 55388, with access provided directly from the industrial boulevard. Ownership is deeded, giving buyers control over their individual storage and flex space.
Offered for sale as an investment opportunity, these newer units provide low-maintenance construction and modern amenities within a small, secure storage/flex environment.
The property is located at 721 Industrial Blvd in Watertown, MN 55388, with access provided directly from the industrial boulevard. Ownership is deeded, giving buyers control over their individual storage and flex space.
Offered for sale as an investment opportunity, these newer units provide low-maintenance construction and modern amenities within a small, secure storage/flex environment.
Key Highlights
- Built in 2022: deeded Units B3 and B4 at The Workshop of Watertown (721 Industrial Blvd, Watertown).
- Deeded flex storage spaces suitable for vehicles, boats, or workshop use.
- Units are described as versatile for uses including an RV/boat/car space and room for a workshop, studio, or business needs.
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
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Open 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
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Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Flex space - Built in 2022, Units B3 and B4 are deeded flex storage spaces suitable for vehicles, boats, or workshop use.
Where is this flex space located?
The property is located at 721 Industrial Blvd 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: Built in 2022: deeded Units B3 and B4 at The Workshop of Watertown (721 Industrial Blvd, Watertown).; Deeded flex storage spaces suitable for vehicles, boats, or workshop use.; Units are described as versatile for uses including an RV/boat/car space and room for a workshop, studio, or business needs.
