Building Details

Year Built 1940

Year Renovated 2026

Buildings 1

Listing Agency: Greatland Real Estate Services LLC a***@cbburnet.com Show Phone

Listed By: Andrei Bortnov · License #40930918

Source: Crexi

Added: Jun 11 Changed: Aug 8 Last Checked: Aug 11 at 2:20PM

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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 Greatland Real Estate Services LLC

Investment Insights

Based on property information with market context.

This stand-alone industrial building offers 4,040 square feet of flexible workspace designed for commercial and light industrial use. The warehouse configuration includes one 10-foot drive-in door and one 8-foot dock door with platform, supporting efficient loading operations. Inside, the property provides an 11-foot clear height and includes a dedicated restroom for day-to-day functionality. Six on-site parking stalls help accommodate employees and visitors.

The property is located at 76 21st Street in Newport, Minnesota. It sits about five minutes from both Highway 494 and Highway 10, providing straightforward regional connectivity for distribution, service, and client-facing operations.

The building’s zoning supports a wide variety of permitted uses, including artist studios, office, and medical. The information also identifies conditional use opportunities such as fitness facilities, catering, indoor recreation, recording studios, print shops, R&D labs, and beauty or hair salons. This combination of practical loading features and adaptable zoning makes the property a strong fit for an owner-user or buyer seeking a versatile industrial building with light office or medical-compatible options.

Key Highlights

• Stand‑alone industrial building built in 1940 offering 4,040 SF with a warehouse configuration and office‑ready space
• Loading features include one 10‑foot drive‑in door and one 8‑foot dock door with platform for efficient operations
• 11‑foot clear height provides practical vertical space for warehouse and light industrial use

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

$53,294

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

8.88%

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%

$1,065,880 $1.1M

Cap Rate 7%

$761,343 $761.3K

Cap Rate 9%

$592,156 $592.2K

Market Conditions

NOI Build-Up for 4,040 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

$65.4K $16.20/SF

− Vacancy

−$2.7K −$0.68/SF

EGI

$62.7K $15.52/SF

− OpEx

−$9.4K −$2.33/SF

NOI

$53.3K $13.19/SF

Area

Washington County, MN

Vacancy

4.20%

Lease Rate

$16.20 /SF/Yr

Expense Ratio

15.00%

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%

$1,065,880

Cap Rate 7%

$761,343

Cap Rate 9%

$592,156

Alternative Uses

Best Use

Office B

$800.6K

$700.5K – $934.0K (±1% cap)

NOI $56,041 @ 7.0% cap · market cap 9.34%

Second Best

Warehouse

$761.3K

$666.2K – $888.2K (±1% cap)

NOI $53,294 @ 7.0% cap · market cap 8.88%

Theoretical Best

Office A

$1.12M

$981.9K – $1.31M (±1% cap)

NOI $78,553 @ 7.0% cap · market cap 13.09%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

V and P Pallet ... Freight Service

Suggested Use

Top Pick Real Estate Agency (Bike/Boat/Book/etc) Store Hair Salon Storage Facility Furniture & Home Goods Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

11 ft

Clear height

1

Dock-high doors

1

Drive-in doors

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

214

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 55055, MN

3,797

Population

2,001

Households

1.9

Avg Household Size

37

Median Age

25%

College-Educated

92%

High-School Grad

3.6 sq mi

ZIP Area

1,055

Density / Sq Mi

$63,365

Median Household Income

$41,118

Median Earnings

$1,080

Median Rent

$331,300

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Flexible warehouse and office-ready layout with drive-in and dock loading plus convenient on-site parking.

Where is this flex space located?

The property is located at 76 21st Street Newport, MN.

What is the asking price?

The asking price for this property is $600,000.

What are key features of this property?

This property features: Stand‑alone industrial building built in 1940 offering 4,040 SF with a warehouse configuration and office‑ready space; Loading features include one 10‑foot drive‑in door and one 8‑foot dock door with platform for efficient operations; 11‑foot clear height provides practical vertical space for warehouse and light industrial use