Customizable Flex
For Sale
$325,000
940 McKinley Pkwy Unit 401, Delano, MN 55328
Flexible commercial unit suited for office, warehouse, workshop, showroom, or garage configurations.
Property Size1,520 SF
Price / SF$213.82
Days on Market21
Property Features for 940 McKinley Pkwy Unit 401
General Information
Standard status
Active
Size
1,520 SF
Building Details
Year Built
2026
Listing Agency:
eXp Realty
(612) 695-0167
Listed By:
Martin Turner
Source:
Chrisfritchteam
Added: Aug 10
Changed: Aug 29
Last Checked: Aug 25 at 4:17AM
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 1,520 SF flex unit is designed for customization across office, warehouse, workshop, showroom, or garage applications. The unit includes 5-inch concrete flooring with floor drains, 20-foot ceilings, commercial-grade windows, an entry door, and a 14-foot-wide by 14-foot-tall garage door. A mezzanine can add 608 or more SF, creating 2,128+ SF of total space. The building package includes LP SmartSide lap siding, fire suppression, in-floor radiant heating, three-phase power, AC, and water and sewer connections. A bathroom is roughed in, with options available for additional improvements such as a bathroom, wet bar, kitchenette, or hot tub. Located at 940 McKinley Pkwy Unit 401 in Delano, Minnesota, the Phase 3 unit is scheduled for completion in late June 2026.
Key Highlights
- 1,520 SF flex unit with 20‑foot ceilings
- Mezzanine option adds 608 or more SF for 2,128+ SF total
- 14‑foot‑wide by 14‑foot‑tall garage door
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
6.34%
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 6.34%
Second Best
Warehouse
$286.4K
$250.6K – $334.2K
NOI $20,051 @ 7.0% cap · market cap 6.17%
Theoretical Best
Office A
$362.6K
$317.3K – $423.1K
NOI $25,385 @ 7.0% cap · market cap 7.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
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 Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible commercial unit suited for office, warehouse, workshop, showroom, or garage configurations.
Where is this flex space located?
The property is located at 940 McKinley Pkwy Unit 401 Delano, MN.
What is the asking price?
The asking price for this property is $325,000.
What are key features of this property?
This property features: 1,520 SF flex unit with 20‑foot ceilings; Mezzanine option adds 608 or more SF for 2,128+ SF total; 14‑foot‑wide by 14‑foot‑tall garage door
