New Flex Garage
For Sale
$300,000
9781 NE 71st Street, Otsego, MN 55301
Commercial Sale, Otsego, MN
Property Size1,680 SF
Lot Size3.49 Acres
Price / SF$178.57
Days on Market139
Property Features for 9781 NE 71st Street
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Zoning description
Industrial
Parking features
Driveway, Parking Lot, Open, Garage
Subdivision
Otsego I-94 W Industrl Park 4th
High school district
Elk River
Directions
Interstate 94 to north on Cty Rd 19. West on 70th Street to north on 71st Street. Property on left.
Standard status
Active
APN
118238001020
Lot size
3.49 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
2224
Utilities
Heating system
Forced Air
Building Details
Year built
2026
Roof type
Metal
Listing Agency:
Acuity Group
(763) 633-3535
Listed By:
Dustin Heggem · License #40416985
(612) 242-1653
Added: May 11
Changed: Sep 24
Last Checked: Sep 26 at 9:06AM
MLS# 7071693
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This under-construction flex property offers a garage-suite format within the I-94 West Industrial Park. The base configuration measures 28' by 60', or 1,680 square feet, with an optional 16' mezzanine. Planned improvements include forced-air natural gas heat, 100-amp electrical service, a roughed-in 3/4-bathroom, wash tub, hose bib, floor drain, and a 12' by 14' overhead door. The building is designed with 18' ceilings, a 5" concrete floor, and a metal roof. Completion is identified for 2026.
The complex is located at 9781 NE 71st Street in Otsego, Minnesota, with visibility from Interstate 94 and a connection to the Albertville I-94 interchange less than 2 miles away. The property occupies 3.49 acres and includes garage, open, parking lot, and driveway parking features.
The complex is located at 9781 NE 71st Street in Otsego, Minnesota, with visibility from Interstate 94 and a connection to the Albertville I-94 interchange less than 2 miles away. The property occupies 3.49 acres and includes garage, open, parking lot, and driveway parking features.
Key Highlights
- 1,680‑square‑foot base suite measuring 28' by 60'
- Optional 16' mezzanine
- 12' by 14' overhead door and 18' ceilings
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
$22,781
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
7.59%
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%
$455,620
$455.6K
Cap Rate 7%
$325,443
$325.4K
Cap Rate 9%
$253,122
$253.1K
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
$36.9K $21.96/SF
− Vacancy
−$1.8K −$1.10/SF
EGI
$35.0K $20.86/SF
− OpEx
−$12.3K −$7.30/SF
NOI
$22.8K $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%
$455,620
Cap Rate 7%
$325,443
Cap Rate 9%
$253,122
Alternative Uses
Best Use
Flex RnD
$325.4K
$284.8K – $379.7K
NOI $22,781 @ 7.0% cap · market cap 7.59%
Second Best
Warehouse
$316.6K
$277.0K – $369.4K
NOI $22,162 @ 7.0% cap · market cap 7.39%
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
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Current Use
Lease Details
18 ft
Clear height
1
Drive-in doors
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
34
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Flex space - Under-construction garage suite with utility-ready improvements, high ceilings, and convenient interstate access.
Where is this flex space located?
The property is located at 9781 NE 71st Street 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: 1,680‑square‑foot base suite measuring 28' by 60'; Optional 16' mezzanine; 12' by 14' overhead door and 18' ceilings
