Customizable Flex
For Sale
$335,000
940 McKinley Parkway #410, Delano, MN 55328
Private commercial unit suited for office, warehouse, workshop, showroom, or garage applications.
Property Size1,520 SF
Price / SF$220.39
Days on Market139
Property Features for 940 McKinley Parkway #410
General Information
Standard status
Active
Size
1,520 SF
Property subtype
Commercial
Zoning
Business/Commercial, Industrial
Building Details
Building Size
1,520 SF
Year Built
2026
Stories
1
Units
1
Listing Agency:
eXp Realty
(612) 695-0167
Listed By:
Martin Turner
(612) 695-0167
Source:
Juverealestate
Added: Mar 24
Changed: Aug 5
Last Checked: Aug 9 at 2:01PM
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 Realty
Investment Insights
Based on property information with market context.
This private flex unit offers a customizable commercial layout for office, warehouse, workshop, showroom, or garage use. The 1,520-square-foot unit includes 5-inch concrete floors with floor drains, 20-foot ceilings, commercial-grade windows, and a 14-foot-wide by 14-foot-tall garage door. A roughed-in bathroom, water and sewer connections, fire suppression, in-floor radiant heating, AC, and 3-phase power are included. An optional mezzanine can add 608 or more square feet, creating 2,128 or more square feet in total. Additional build-out choices include a bathroom, wet bar, kitchenette, or hot tub, subject to customization plans.
The property is located at 940 McKinley Parkway, Unit 410, in Delano, Minnesota, and carries Business/Commercial and Industrial zoning. Phase 3 is scheduled for completion in late June 2026, with reservations currently being accepted. LP SmartSide lap siding and an entry door complement the building’s commercial construction.
The property is located at 940 McKinley Parkway, Unit 410, in Delano, Minnesota, and carries Business/Commercial and Industrial zoning. Phase 3 is scheduled for completion in late June 2026, with reservations currently being accepted. LP SmartSide lap siding and an entry door complement the building’s commercial construction.
Key Highlights
- 1,520 SF private flex unit with 20' ceilings
- Optional 608+ SF mezzanine can expand the unit to 2,128+ SF
- 14' wide x 14' tall garage door and 5" concrete floors with floor drains
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
$20,612
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
6.15%
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%
$412,240
$412.2K
Cap Rate 7%
$294,457
$294.5K
Cap Rate 9%
$229,022
$229.0K
Market Conditions
NOI Build-Up for 1,520 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
$33.4K $21.96/SF
− Vacancy
−$1.7K −$1.10/SF
EGI
$31.7K $20.86/SF
− OpEx
−$11.1K −$7.30/SF
NOI
$20.6K $13.56/SF
Area
Wright County, MN
Vacancy
5.00%
Lease Rate
$21.96 /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%
$412,240
Cap Rate 7%
$294,457
Cap Rate 9%
$229,022
Alternative Uses
Best Use
Flex RnD
$294.5K
$257.7K – $343.5K
NOI $20,612 @ 7.0% cap · market cap 6.15%
Second Best
Warehouse
$286.4K
$250.6K – $334.2K
NOI $20,051 @ 7.0% cap · market cap 5.99%
Theoretical Best
Office A
$362.6K
$317.3K – $423.1K
NOI $25,385 @ 7.0% cap · market cap 7.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
12
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55328, MN
9,729
Population
3,684
Households
2.6
Avg Household Size
39
Median Age
42%
College-Educated
98%
High-School Grad
44.9 sq mi
ZIP Area
217
Density / Sq Mi
$118,036
Median Household Income
$65,990
Median Earnings
$927
Median Rent
$382,600
Median Home Value
Market
Vacancy Rate% for Office 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?
Flex space - Private commercial unit suited for office, warehouse, workshop, showroom, or garage applications.
Where is this flex space located?
The property is located at 940 McKinley Parkway #410 Delano, MN.
What is the asking price?
The asking price for this property is $335,000.
What are key features of this property?
This property features: 1,520 SF private flex unit with 20' ceilings; Optional 608+ SF mezzanine can expand the unit to 2,128+ SF; 14' wide x 14' tall garage door and 5" concrete floors with floor drains
