Medical Office Building For
For Sale
Contact for pricing
925 E Superior St, Duluth, MN 55802
Medical office building in the heart of the Medical District.
Property Size18,724 SF
Price / SF$160.22
Days on Market190
Property Features for 925 E Superior St
General Information
Standard status
Active
Size
18,724 SF
Total Parking Spaces
49
Property subtype
Office
Zoning
Commercial
Building Details
Year Built
1978
Year Renovated
1991
Buildings
1
Stories
2
Units
11
Listing Agency:
Encompass Real Estate Services
Listed By:
Ben Norton · License #MN 40754517
Source:
Crexi
Added: Feb 2
Changed: Aug 8
Last Checked: Aug 11 at 5:35AM
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 Encompass Real Estate Services
Investment Insights
Based on property information with market context.
This medical office building is located in the heart of the Medical District. The property features dual parking lots on both sides of the building and multiple entrances from Superior Street. Alley access provides additional convenience. The property is well-suited for owner-users or investors seeking a functional and accessible healthcare property in a premier location. The building has a size of 18724 square feet.
Key Highlights
- Premier location in the heart of the Medical District.
- Well‑suited for owner‑users or investors.
- Dual parking lots on both sides of the building.
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
$259,730
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
8.66%
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%
$5,194,600
$5.2M
Cap Rate 7%
$3,710,429
$3.7M
Cap Rate 9%
$2,885,889
$2.9M
Market Conditions
NOI Build-Up for 18,724 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
$467.4K $24.96/SF
− Vacancy
−$121.0K −$6.46/SF
EGI
$346.3K $18.50/SF
− OpEx
−$86.6K −$4.62/SF
NOI
$259.7K $13.87/SF
Area
St. Louis County, MN
Vacancy
25.90%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
25.00%
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%
$5,194,600
Cap Rate 7%
$3,710,429
Cap Rate 9%
$2,885,889
Alternative Uses
Best Use
Healthcare Medical
$5.81M
$5.08M – $6.78M
NOI $406,746 @ 7.0% cap · market cap 13.56%
Second Best
Office B
$3.71M
$3.25M – $4.33M
NOI $259,730 @ 7.0% cap · market cap 8.66%
Theoretical Best
Specialty Retail
$7.26M
$6.36M – $8.47M
NOI $508,433 @ 7.0% cap · market cap 16.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,712
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55802, MN
2,544
Population
1,529
Households
1.7
Avg Household Size
54
Median Age
45%
College-Educated
90%
High-School Grad
2.6 sq mi
ZIP Area
978
Density / Sq Mi
$40,850
Median Household Income
$42,266
Median Earnings
$596
Median Rent
$479,700
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?
Medical Office Space - Medical office building in the heart of the Medical District.
Where is this medical office space located?
The property is located at 925 E Superior St Duluth, MN.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Premier location in the heart of the Medical District.; Well‑suited for owner‑users or investors.; Dual parking lots on both sides of the building.
