New Construction Flex
For Sale
Contact for pricing
9781 NE 71st St, Otsego, MN 55301
Garage-style space includes overhead doors, natural gas heat, and roughed-in bathroom plumbing.
Property Size3,480 SF
Price / SF$170.98
Days on Market10
Property Features for 9781 NE 71st St
General Information
Standard status
Active
Size
3,480 SF
Property subtype
INDUSTRIAL
Warehouse & Industrial
Clear Height
18 ft
Drive-In Doors
2
Power
100 amps
Additional Details
Highway Access
Yes
Listing Agency:
Acuity Group
(612) 242-1653
Listed By:
Dustin Heggem · License #40416985
(612) 242-1653
Source:
Moodyscre
Added: Jul 31
Changed: Aug 3
Last Checked: Aug 8 at 8:48AM
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.
This newly constructed flex suite provides 3,480 square feet in a garage-oriented layout measuring 58' by 60'. The space includes two 12' x 14' overhead doors, 18' ceilings, a 5-inch concrete floor with a floor drain, natural gas heat, and two 100-amp electrical services. Two bathrooms are roughed in, with a wash tub and hose bib also included. A 16-foot mezzanine may be added.
The suite is located within the I-94 West Industrial Park, which has direct freeway visibility. The Albertville Interstate 94 interchange is less than 2 miles away. The property address is 9781 NE 71st Street, Otsego, MN 55301.
The suite is located within the I-94 West Industrial Park, which has direct freeway visibility. The Albertville Interstate 94 interchange is less than 2 miles away. The property address is 9781 NE 71st Street, Otsego, MN 55301.
Key Highlights
- 3,480‑square‑foot flex suite with a 58' x 60' footprint
- Two 12' x 14' overhead doors and 18' ceilings
- Two 100‑amp electrical services with natural gas heat
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
$37,806
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
6.35%
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%
$756,120
$756.1K
Cap Rate 7%
$540,086
$540.1K
Cap Rate 9%
$420,067
$420.1K
Market Conditions
NOI Build-Up for 3,480 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
$56.4K $16.20/SF
− Vacancy
−$2.4K −$0.68/SF
EGI
$54.0K $15.52/SF
− OpEx
−$16.2K −$4.66/SF
NOI
$37.8K $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%
$756,120
Cap Rate 7%
$540,086
Cap Rate 9%
$420,067
Alternative Uses
Best Use
Industrial
$540.1K
$472.6K – $630.1K
NOI $37,806 @ 7.0% cap · market cap 6.35%
Second Best
Flex RnD
$409.5K
$358.3K – $477.7K
NOI $28,664 @ 7.0% cap · market cap 4.82%
Theoretical Best
Office A
$830.3K
$726.5K – $968.6K
NOI $58,118 @ 7.0% cap · market cap 9.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
18 ft
Clear height
2
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
15
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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 - Garage-style space includes overhead doors, natural gas heat, and roughed-in bathroom plumbing.
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 $595,000.
What are key features of this property?
This property features: 3,480‑square‑foot flex suite with a 58' x 60' footprint; Two 12' x 14' overhead doors and 18' ceilings; Two 100‑amp electrical services with natural gas heat
