New Construction Flex Garage
For Sale
Contact for pricing
Pending
9781 NE 71st St, Otsego, MN 55301
Flex garage suites with natural gas heat, 12-by-14 overhead doors, and 18-foot ceilings in the I-94 West Industrial Park.
Property Size1,680 SF
Days on Market128
Property Features for 9781 NE 71st St
General Information
Standard status
Pending
Size
1,680 SF
Property subtype
INDUSTRIAL
Warehouse & Industrial
Clear Height
18 ft
Power
100 amps
Listing Agency:
Acuity Group
(763) 633-3535
Listed By:
Dustin Heggem · License #40416985
(612) 242-1653
Source:
Moodyscre
Added: May 11
Changed: Sep 3
Last Checked: Sep 14 at 12:41PM
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 Acuity Group
Investment Insights
Based on property information with market context.
New construction flex garage suites in the I-94 West Industrial Park at 9781 NE 71st St, Otsego, MN. Base-sized suites are 28' x 60' (1,680 SF), with one larger suite at 58' x 60' (3,480 SF). An additional 16' mezzanine can be added.
Each unit includes natural gas heat and a 100-amp service. Suites are roughed-in for a 3/4 bathroom and include a wash tub, hose bib, and a 5" concrete floor with a floor drain. Parking and loading are supported by a 12' x 14' overhead door and 18' ceilings.
The complex offers direct freeway visibility and is less than 2 miles from the Albertville Interstate 94 on/off ramp.
Each unit includes natural gas heat and a 100-amp service. Suites are roughed-in for a 3/4 bathroom and include a wash tub, hose bib, and a 5" concrete floor with a floor drain. Parking and loading are supported by a 12' x 14' overhead door and 18' ceilings.
The complex offers direct freeway visibility and is less than 2 miles from the Albertville Interstate 94 on/off ramp.
Key Highlights
- Base flex suite size: 28' x 60' (1,680 SF)
- One larger suite: 58' x 60' (3,480 SF)
- Optional 16' mezzanine addition
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
$18,251
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
6.08%
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%
$365,020
$365.0K
Cap Rate 7%
$260,729
$260.7K
Cap Rate 9%
$202,789
$202.8K
Market Conditions
NOI Build-Up for 1,680 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
$27.2K $16.20/SF
− Vacancy
−$1.1K −$0.68/SF
EGI
$26.1K $15.52/SF
− OpEx
−$7.8K −$4.66/SF
NOI
$18.3K $10.86/SF
Area
Hennepin County, MN
Vacancy
4.20%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
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%
$365,020
Cap Rate 7%
$260,729
Cap Rate 9%
$202,789
Alternative Uses
Best Use
Industrial
$260.7K
$228.1K – $304.2K
NOI $18,251 @ 7.0% cap · market cap 6.08%
Second Best
Flex RnD
$197.7K
$173.0K – $230.6K
NOI $13,838 @ 7.0% cap · market cap 4.61%
Theoretical Best
Office A
$400.8K
$350.7K – $467.6K
NOI $28,057 @ 7.0% cap · market cap 9.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
18 ft
Clear height
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55301, MN
12,791
Population
4,720
Households
2.7
Avg Household Size
33
Median Age
44%
College-Educated
98%
High-School Grad
8.2 sq mi
ZIP Area
1,560
Density / Sq Mi
$131,157
Median Household Income
$65,890
Median Earnings
$1,458
Median Rent
$324,000
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Broaster Catering Inc — 9957 65th St NE, Albertville, MN 55301
Frequently Asked Questions
What type of property is this?
Flex space - Flex garage suites with natural gas heat, 12-by-14 overhead doors, and 18-foot ceilings in the I-94 West Industrial Park.
Where is this flex space located?
The property is located at 9781 NE 71st St Otsego, MN.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Base flex suite size: 28' x 60' (1,680 SF); One larger suite: 58' x 60' (3,480 SF); Optional 16' mezzanine addition
