Flexible Office
New
For Sale
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903 N Broadway Ave, Rochester, MN 55901
Commercial building with an adaptable layout for office, retail, or service-oriented business operations.
Property Size2,784 SF
Price / SF$179.60
Days on Market4
Property Features for 903 N Broadway Ave
General Information
Standard status
Active
Size
2,784 SF
Property subtype
OFFICE
Additional Details
Road Access
Yes
Listing Agency:
Realty Growth, Inc
(507) 951-7130
Listed By:
Bucky Beeman
(507) 951-7130
Source:
Moodyscre
Added: Aug 6
Changed: Aug 9
Last Checked: Aug 9 at 6:49AM
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 Realty Growth, Inc
Investment Insights
Based on property information with market context.
This 2,784-square-foot commercial building at 903 N Broadway Ave offers office units within a flexible floor plan. The interior configuration can accommodate office, retail, or service-based business uses, providing a practical format for varied commercial operations.
The property is positioned on Broadway Avenue in Rochester, Minnesota, within an established commercial corridor. Its address places the building along a prominent city thoroughfare and supports consideration for an owner-user or investor seeking adaptable commercial space.
The property is positioned on Broadway Avenue in Rochester, Minnesota, within an established commercial corridor. Its address places the building along a prominent city thoroughfare and supports consideration for an owner-user or investor seeking adaptable commercial space.
Key Highlights
- 2,784‑square‑foot commercial building
- Flexible floor plan for office, retail, or service‑based uses
- Located at 903 N Broadway Ave, Rochester, MN 55901
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
$31,336
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
6.27%
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%
$626,720
$626.7K
Cap Rate 7%
$447,657
$447.7K
Cap Rate 9%
$348,178
$348.2K
Market Conditions
NOI Build-Up for 2,784 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
$46.1K $16.56/SF
− Vacancy
−$1.3K −$0.48/SF
EGI
$44.8K $16.08/SF
− OpEx
−$13.4K −$4.82/SF
NOI
$31.3K $11.26/SF
Area
Rochester, MN
Vacancy
2.90%
Lease Rate
$16.56 /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%
$626,720
Cap Rate 7%
$447,657
Cap Rate 9%
$348,178
Alternative Uses
Best Use
Office B
$732.9K
$641.3K – $855.0K
NOI $51,302 @ 7.0% cap · market cap 10.26%
Second Best
Retail
$447.7K
$391.7K – $522.3K
NOI $31,336 @ 7.0% cap · market cap 6.27%
Theoretical Best
Office A
$1.07M
$938.2K – $1.25M
NOI $75,058 @ 7.0% cap · market cap 15.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
806
Businesses Nearby
Explore this area
Business Placement
Demographics for 55901, MN
58,046
Population
24,852
Households
2.3
Avg Household Size
36
Median Age
50%
College-Educated
94%
High-School Grad
33.1 sq mi
ZIP Area
1,754
Density / Sq Mi
$90,430
Median Household Income
$52,778
Median Earnings
$1,321
Median Rent
$290,000
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 units - Commercial building with an adaptable layout for office, retail, or service-oriented business operations.
Where is this office units located?
The property is located at 903 N Broadway Ave Rochester, MN.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: 2,784‑square‑foot commercial building; Flexible floor plan for office, retail, or service‑based uses; Located at 903 N Broadway Ave, Rochester, MN 55901
