Flex Unit with Mezzanine
For Sale
$299,000
940 McKinley Pkwy Unit 202, Delano, MN 55328
Customizable commercial unit suited to office, workshop, showroom, or garage use.
Property Size1,433 SF
Price / SF$208.65
Days on Market33
Property Features for 940 McKinley Pkwy Unit 202
General Information
Standard status
Active
Size
1,433 SF
Warehouse & Industrial
Clear Height
20 ft
Drive-In Doors
1
Three-Phase Power
Yes
Sprinkler System
Yes
Additional Details
Utilities to Site
Yes
Amenities
commercial grade windows
entry door
LP Smartside lap siding
in floor radiant heating
3 phase power
AC
plumbed with water and sewer
roughed-in bathroom
Building Details
Year Built
2025
Listing Agency:
eXp Realty
(612) 695-0167
Listed By:
Martin Turner
Source:
Searchhousesnow
Added: Jul 29
Changed: Aug 28
Last Checked: Aug 29 at 12:32PM
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 1,433-square-foot flex unit was built in 2025 with 5-inch concrete floors, floor drains, commercial-grade windows, a 16-foot-wide by 14-foot-tall garage door, and 20-foot ceilings. The space can be configured for office/warehouse, workshop, showroom, or garage use. A mezzanine can add 608 or more square feet. Each unit includes three-phase power, AC wiring, water and sewer plumbing, fire suppression, in-floor radiant heating, and a roughed-in bathroom. A split system may be added for additional heating or cooling, while other available improvements include a bathroom, wet bar, or kitchenette.
Located at 940 McKinley Pkwy Unit 202 in Delano, Minnesota, the property is part of a multi-phase commercial unit development. Phase 3 is scheduled for completion in late Spring of 2026, with reservations currently being accepted.
Located at 940 McKinley Pkwy Unit 202 in Delano, Minnesota, the property is part of a multi-phase commercial unit development. Phase 3 is scheduled for completion in late Spring of 2026, with reservations currently being accepted.
Key Highlights
- 1,433 SF flex unit built in 2025
- Mezzanine option adds 608 or more SF
- 20‑foot ceilings with 5‑inch concrete floors and 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
$19,432
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
6.50%
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%
$388,640
$388.6K
Cap Rate 7%
$277,600
$277.6K
Cap Rate 9%
$215,911
$215.9K
Market Conditions
NOI Build-Up for 1,433 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
$31.5K $21.96/SF
− Vacancy
−$1.6K −$1.10/SF
EGI
$29.9K $20.86/SF
− OpEx
−$10.5K −$7.30/SF
NOI
$19.4K $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%
$388,640
Cap Rate 7%
$277,600
Cap Rate 9%
$215,911
Alternative Uses
Best Use
Flex RnD
$277.6K
$242.9K – $323.9K
NOI $19,432 @ 7.0% cap · market cap 6.50%
Second Best
Warehouse
$270.1K
$236.3K – $315.1K
NOI $18,904 @ 7.0% cap · market cap 6.32%
Theoretical Best
Office A
$341.9K
$299.2K – $398.9K
NOI $23,932 @ 7.0% cap · market cap 8.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
20 ft
Clear height
1
Drive-in doors
Yes
Sprinkler system
Yes
Utilities to site
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 Industrial 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 - Customizable commercial unit suited to office, workshop, showroom, or garage use.
Where is this flex space located?
The property is located at 940 McKinley Pkwy Unit 202 Delano, MN.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: 1,433 SF flex unit built in 2025; Mezzanine option adds 608 or more SF; 20‑foot ceilings with 5‑inch concrete floors and floor drains
