Two-Story Retail
For Sale
Contact for pricing
829 East 2nd Street, Duluth, MN 55805
Two-story retail building with off-street parking and an existing second-floor tenant.
Property Size5,600 SF
Price / SF$125
Days on Market130
Property Features for 829 East 2nd Street
General Information
Standard status
Active
Size
5,600 SF
Property subtype
Retail
Building Details
Year Built
1922
Stories
2
Units
2
Listing Agency:
Follmer Commercial Real Estate
Listed By:
Greg Follmer · License #MN 27078
(218) 310-0013
Source:
Crexi
Added: May 5
Changed: Aug 31
Last Checked: Sep 10 at 9:18AM
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 Follmer Commercial Real Estate
Investment Insights
Based on property information with market context.
This two-story retail building was built in 1922 and includes two levels of space. The property has off-street parking, and a tenant is already in place on the upper (second) floor.
The building is described as being in the East End area just outside downtown with easy access.
The offering is for sale and includes reference to unit numbers #010-3830-07630 and 07640.
The building is described as being in the East End area just outside downtown with easy access.
The offering is for sale and includes reference to unit numbers #010-3830-07630 and 07640.
Key Highlights
- Two‑story retail building built in 1922
- 5,600 SF across 2 floors
- Existing second‑floor tenant in place (#010‑3830‑07630 & 07640)
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
$52,920
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
7.56%
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%
$1,058,400
$1.1M
Cap Rate 7%
$756,000
$756.0K
Cap Rate 9%
$588,000
$588.0K
Market Conditions
NOI Build-Up for 5,600 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
$84.0K $15.00/SF
− Vacancy
−$8.4K −$1.50/SF
EGI
$75.6K $13.50/SF
− OpEx
−$22.7K −$4.05/SF
NOI
$52.9K $9.45/SF
Area
St. Louis County, MN
Vacancy
10.00%
Lease Rate
$15.00 /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%
$1,058,400
Cap Rate 7%
$756,000
Cap Rate 9%
$588,000
Alternative Uses
Best Use
Retail
$756.0K
$661.5K – $882.0K
NOI $52,920 @ 7.0% cap · market cap 7.56%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.17M
$1.90M – $2.53M
NOI $152,063 @ 7.0% cap · market cap 21.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,858
Businesses Nearby
22k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 56%
Dining 24%
Home Improvements & Furnishings 20%
Speedway
Shops & Services
10,052 visits/mo
0.3 miles
Burggraf's Ace Hardware
Home Improvements & Furnishings
4,431 visits/mo
0.4 miles
Great Harvest Bread Co.
Dining
3,846 visits/mo
0.3 miles
O'Reilly Auto Parts
Shops & Services
2,126 visits/mo
0.3 miles
Jimmy John's
Dining
1,416 visits/mo
0.3 miles
Demographics for 55805, MN
9,731
Population
5,430
Households
1.8
Avg Household Size
31
Median Age
37%
College-Educated
93%
High-School Grad
1.4 sq mi
ZIP Area
6,951
Density / Sq Mi
$43,077
Median Household Income
$26,309
Median Earnings
$984
Median Rent
$171,100
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Two-story retail building with off-street parking and an existing second-floor tenant.
Where is this retail space located?
The property is located at 829 East 2nd Street Duluth, MN.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Two‑story retail building built in 1922; 5,600 SF across 2 floors; Existing second‑floor tenant in place (#010‑3830‑07630 & 07640)
