Flex Space with Drive-In
For Sale
Contact for pricing
918 Pendant Ln NW Ste 100, Rochester, MN 55901
Light industrial space combines office improvements, heavy power, utilities, and loading access for operational flexibility.
Property Size20,800 SF
Price / SF$168.27
Days on Market8
Property Features for 918 Pendant Ln NW Ste 100
General Information
Standard status
Active
Size
20,800 SF
Property subtype
Retail, Mixed Use, Office
Warehouse & Industrial
Clear Height
20 ft
Heavy Power
Yes
Additional Details
Utilities to Site
Yes
Listing Agency:
Realty Growth Incorporated
Listed By:
Robert Bucky Beeman · License #MN 40149580
(507) 289-8000
Source:
Crexi
Added: Sep 1
Changed: Sep 7
Last Checked: Sep 8 at 4:53AM
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 Incorporated
Investment Insights
Based on property information with market context.
This 20,800-square-foot flex property includes built-out office areas within a light industrial facility. The building provides 20-foot clear height, drive-in doors, heavy power, and utilities, supporting a range of operational and storage requirements.
The property is located near Hwy 14 and West Circle Dr in Rochester, Minnesota. The owner is open to selling or leasing back a portion of the premises for ongoing business operations, creating flexibility around occupancy and use of the space.
The property is located near Hwy 14 and West Circle Dr in Rochester, Minnesota. The owner is open to selling or leasing back a portion of the premises for ongoing business operations, creating flexibility around occupancy and use of the space.
Key Highlights
- 20,800 SF flex property
- 20‑foot clear height
- Drive‑in doors for loading access
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
$170,433
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
4.87%
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%
$3,408,660
$3.4M
Cap Rate 7%
$2,434,757
$2.4M
Cap Rate 9%
$1,893,700
$1.9M
Market Conditions
NOI Build-Up for 20,800 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
$274.6K $13.20/SF
− Vacancy
−$12.4K −$0.59/SF
EGI
$262.2K $12.61/SF
− OpEx
−$91.8K −$4.41/SF
NOI
$170.4K $8.19/SF
Area
Rochester, MN
Vacancy
4.50%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
35.00%
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%
$3,408,660
Cap Rate 7%
$2,434,757
Cap Rate 9%
$1,893,700
Alternative Uses
Best Use
Office B
$5.48M
$4.79M – $6.39M
NOI $383,292 @ 7.0% cap · market cap 10.95%
Second Best
Flex RnD
$2.43M
$2.13M – $2.84M
NOI $170,433 @ 7.0% cap · market cap 4.87%
Theoretical Best
Office A
$8.01M
$7.01M – $9.35M
NOI $560,781 @ 7.0% cap · market cap 16.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20 ft
Clear height
Yes
Heavy power
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
Under-served
Demand for This Use
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?
Flex space - Light industrial space combines office improvements, heavy power, utilities, and loading access for operational flexibility.
Where is this flex space located?
The property is located at 918 Pendant Ln NW Ste 100 Rochester, MN.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 20,800 SF flex property; 20‑foot clear height; Drive‑in doors for loading access
