Single-Story Brick Office
For Sale
$5,300,000
7540 SW Airport View Dr SW, Rochester, MN 55902
Fully leased masonry facility with airport adjacency, on-site parking, and access to major roads and highways.
Property Size22,320 SF
Lot Size2.48 Acres
Price / SF$237.46
Days on Market15
Property Features for 7540 SW Airport View Dr SW
General Information
Standard status
Active
Size
22,320 SF
Lot size
2.48 Acres
Occupancy
100%
Additional Details
Highway Access
Yes
Building Details
Year Built
2008
Buildings
1
Stories
1
Building Size
22,320 SF
Construction
brick
Tenancy
Single
Listing Agency:
Re/Max Results
(507) 254-0957
Listed By:
Daniel Groteboer
Source:
Bradadamrealty
Added: Aug 16
Changed: Aug 29
Last Checked: Aug 29 at 10:27AM
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 Re/Max Results
Investment Insights
Based on property information with market context.
This single-story office property comprises a 22,320-square-foot facility completed in 2008. The building features a masonry exterior, brick construction, and a professional commercial presentation. It is fully leased with an established tenant in place, providing an occupied office asset with on-site parking.
The property encompasses 2.48 acres and is adjacent to Rochester International Airport. Its location offers direct proximity to airport facilities along with access to major roads and highways. The combination of a modern construction date, durable exterior, and existing occupancy defines the asset’s primary commercial characteristics.
The property encompasses 2.48 acres and is adjacent to Rochester International Airport. Its location offers direct proximity to airport facilities along with access to major roads and highways. The combination of a modern construction date, durable exterior, and existing occupancy defines the asset’s primary commercial characteristics.
Key Highlights
- 22,320‑square‑foot office facility built in 2008
- Fully leased with an established tenant in place
- Single‑story building with masonry exterior and brick construction
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
$411,302
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
7.76%
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%
$8,226,040
$8.2M
Cap Rate 7%
$5,875,743
$5.9M
Cap Rate 9%
$4,570,022
$4.6M
Market Conditions
NOI Build-Up for 22,320 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
$602.6K $27.00/SF
− Vacancy
−$54.2K −$2.43/SF
EGI
$548.4K $24.57/SF
− OpEx
−$137.1K −$6.14/SF
NOI
$411.3K $18.43/SF
Area
Rochester, MN
Vacancy
9.00%
Lease Rate
$27.00 /SF/Yr
Expense Ratio
25.00%
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%
$8,226,040
Cap Rate 7%
$5,875,743
Cap Rate 9%
$4,570,022
Alternative Uses
Best Use
Office B
$5.88M
$5.14M – $6.86M
NOI $411,302 @ 7.0% cap · market cap 7.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.60M
$7.52M – $10.03M
NOI $601,761 @ 7.0% cap · market cap 11.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
55
Businesses Nearby
Explore this area
Business Placement
Demographics for 55902, MN
25,878
Population
11,954
Households
2.2
Avg Household Size
40
Median Age
66%
College-Educated
98%
High-School Grad
41.1 sq mi
ZIP Area
630
Density / Sq Mi
$111,879
Median Household Income
$68,869
Median Earnings
$1,580
Median Rent
$430,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully leased masonry facility with airport adjacency, on-site parking, and access to major roads and highways.
Where is this office building located?
The property is located at 7540 SW Airport View Dr SW Rochester, MN.
What is the asking price?
The asking price for this property is $5,300,000.
What are key features of this property?
This property features: 22,320‑square‑foot office facility built in 2008; Fully leased with an established tenant in place; Single‑story building with masonry exterior and brick construction
