Light Industrial Warehouse
For Sale
Contact for pricing
8555 123rd St W, Savage, MN 55378
A 2004-built light industrial warehouse with leased office space and substantial area to occupy starting December 1, 2026.
Property Size19,035 SF
Price / SF$157.34
Days on Market65
Property Features for 8555 123rd St W
General Information
Standard status
Active
Size
19,035 SF
Property subtype
INDUSTRIAL
Zoning
I-1
Additional Details
Highway Access
Yes
Building Details
Year Built
2004
Listing Agency:
eXp Commercial
(612) 819-8285
Listed By:
Scott Naasz · License #40922534
(612) 819-8285
Source:
Moodyscre
Added: Jun 8
Changed: Jul 27
Last Checked: Jul 27 at 12:58PM
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 eXp Commercial
Investment Insights
Based on property information with market context.
Located at 8555 123rd St W in Savage, Minnesota, this 2004-built industrial facility totals 19,035 square feet of warehouse and operational space. The property includes office space that is leased to an established tenant, with eight years remaining as of December 1, 2026, and 4% annual rent increases.
The remaining occupancy is projected to be available beginning December 1, 2026, with approximately 14,806 square feet available for warehouse and operational use and 4,229 square feet of office space under lease. The property is zoned I-1 (Light Industrial), supporting a range of industrial uses for both owner-users and investors.
With its warehouse-forward configuration and existing in-place office lease, the building is designed to support day-to-day industrial operations while maintaining leased income from the office component.
The remaining occupancy is projected to be available beginning December 1, 2026, with approximately 14,806 square feet available for warehouse and operational use and 4,229 square feet of office space under lease. The property is zoned I-1 (Light Industrial), supporting a range of industrial uses for both owner-users and investors.
With its warehouse-forward configuration and existing in-place office lease, the building is designed to support day-to-day industrial operations while maintaining leased income from the office component.
Key Highlights
- 19,035 SF light industrial warehouse and operational space built in 2004 in Savage, MN
- Zoned I‑1 (Light Industrial) for a range of industrial uses
- Starting Dec 1, 2026, approx. 14,806 SF will be available for occupancy
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
$251,103
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
8.38%
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%
$5,022,060
$5.0M
Cap Rate 7%
$3,587,186
$3.6M
Cap Rate 9%
$2,790,033
$2.8M
Market Conditions
NOI Build-Up for 19,035 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
$308.4K $16.20/SF
− Vacancy
−$13.0K −$0.68/SF
EGI
$295.4K $15.52/SF
− OpEx
−$44.3K −$2.33/SF
NOI
$251.1K $13.19/SF
Area
Scott 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%
$5,022,060
Cap Rate 7%
$3,587,186
Cap Rate 9%
$2,790,033
Alternative Uses
Best Use
Warehouse
$3.59M
$3.14M – $4.19M
NOI $251,103 @ 7.0% cap · market cap 8.38%
Second Best
Industrial
$2.95M
$2.58M – $3.45M
NOI $206,791 @ 7.0% cap · market cap 6.90%
Theoretical Best
Office A
$4.54M
$3.97M – $5.30M
NOI $317,895 @ 7.0% cap · market cap 10.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
311
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55378, MN
31,906
Population
11,857
Households
2.7
Avg Household Size
37
Median Age
51%
College-Educated
97%
High-School Grad
14.3 sq mi
ZIP Area
2,231
Density / Sq Mi
$122,237
Median Household Income
$58,171
Median Earnings
$1,608
Median Rent
$393,800
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.
Similar Off Market Nearby
- Public Storage — 7801 128th St W, Savage, MN 55378
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Frequently Asked Questions
What type of property is this?
Warehouse - A 2004-built light industrial warehouse with leased office space and substantial area to occupy starting December 1, 2026.
Where is this warehouse located?
The property is located at 8555 123rd St W Savage, MN.
What is the asking price?
The asking price for this property is $2,995,000.
What are key features of this property?
This property features: 19,035 SF light industrial warehouse and operational space built in 2004 in Savage, MN; Zoned I‑1 (Light Industrial) for a range of industrial uses; Starting Dec 1, 2026, approx. 14,806 SF will be available for occupancy
