End-Unit Flex Space with
For Sale
Contact for pricing
940 McKinley Pkwy Unit #212, Delano, MN 55328
Commercial zoning, high ceilings, overhead access, and separate entry support varied workspace configurations.
Property Size1,808 SF
Price / SF$221.18
Days on Market145
Property Features for 940 McKinley Pkwy Unit #212
General Information
Standard status
Active
Size
1,808 SF
Property subtype
Mixed Use, Self Storage, Special Purpose
Zoning
Commercial
Investment Type
Owner/User
Warehouse & Industrial
Clear Height
20 ft
Mezzanine
288 SF
Drive-In Doors
1
Sprinkler System
Yes
Amenities
walk-out balcony
heated floors
ductless mini-split systems
half bath
commercial-grade windows
abundant natural light
Building Details
Year Built
2025
Units
6
Listing Agency:
eXp Commercial
Listed By:
Tonia Detweiler · License #40339623
Source:
Crexi
Added: Apr 10
Changed: Aug 31
Last Checked: Aug 31 at 7:39PM
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 Commercial
Investment Insights
Based on property information with market context.
Built in 2025, this end-unit flex space at 940 McKinley Pkwy Unit #212 in Delano, MN, provides 1,520 finished square feet on the main level plus a 288-square-foot mezzanine. The layout includes a half bath, separate entry door, 16 x 14 overhead door, 20-foot ceilings, 5-inch concrete flooring with floor drains, heated floors, commercial-grade windows, and a fire suppression system. Two ductless mini-split systems provide heating and cooling.
The mezzanine adds elevated workspace above the main floor, while a walk-out balcony faces wetlands. End-unit placement brings additional windows and increased privacy. LP SmartSide siding and durable interior finishes complete the 1,808-square-foot property, which is zoned Commercial.
The mezzanine adds elevated workspace above the main floor, while a walk-out balcony faces wetlands. End-unit placement brings additional windows and increased privacy. LP SmartSide siding and durable interior finishes complete the 1,808-square-foot property, which is zoned Commercial.
Key Highlights
- 1,808 square feet total, including 1,520 finished square feet on the main level and a 288 sqft mezzanine
- 20‑foot ceilings with a 16 x 14 overhead door
- 5‑inch concrete flooring with floor drains and heated floors
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
$24,517
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
6.13%
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%
$490,340
$490.3K
Cap Rate 7%
$350,243
$350.2K
Cap Rate 9%
$272,411
$272.4K
Market Conditions
NOI Build-Up for 1,808 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
$39.7K $21.96/SF
− Vacancy
−$2.0K −$1.10/SF
EGI
$37.7K $20.86/SF
− OpEx
−$13.2K −$7.30/SF
NOI
$24.5K $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%
$490,340
Cap Rate 7%
$350,243
Cap Rate 9%
$272,411
Alternative Uses
Best Use
Flex RnD
$350.2K
$306.5K – $408.6K
NOI $24,517 @ 7.0% cap · market cap 6.13%
Second Best
Warehouse
$340.7K
$298.1K – $397.5K
NOI $23,851 @ 7.0% cap · market cap 5.96%
Theoretical Best
Office A
$431.4K
$377.4K – $503.3K
NOI $30,195 @ 7.0% cap · market cap 7.55%
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
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
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial zoning, high ceilings, overhead access, and separate entry support varied workspace configurations.
Where is this flex space located?
The property is located at 940 McKinley Pkwy Unit #212 Delano, MN.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: 1,808 square feet total, including 1,520 finished square feet on the main level and a 288 sqft mezzanine; 20‑foot ceilings with a 16 x 14 overhead door; 5‑inch concrete flooring with floor drains and heated floors
