Insulated Overhead-Door Warehouse
For Sale
$175,000
B12-721 Industrial Boulevard, Watertown, MN 55388
Functional commercial unit with heat, utility service, storage-oriented improvements, and association-maintained exterior services.
Property Size1,004 SF
Price / SF$174.30
Days on Market13
Property Features for B12-721 Industrial Boulevard
General Information
Standard status
Active
Size
1,004 SF
Warehouse & Industrial
Power
100 amps
Sprinkler System
Yes
Additional Details
Utilities to Site
Yes
Taxes and HOA fees
Annual Taxes
$1,868
Amenities
lawn care
snow removal
refuse removal
security
Listing Agency:
Edina Realty, Inc.
(952) 212-2374
Listed By:
Butcher Real Estate Team
(952) 212-2374
Source:
Exprealty
Added: Aug 17
Changed: Aug 29
Last Checked: Aug 29 at 10:23AM
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 Edina Realty, Inc.
Investment Insights
Based on property information with market context.
This 1,004-square-foot warehouse unit at B12-721 Industrial Boulevard includes finished sheet-rock walls, a tin ceiling, a 14-foot insulated overhead door with opener, LED lighting, in-floor heat, and 100-amp electrical service. A floor trench drain, fire suppression system, spray foam insulation, rough-in bathroom with shower, and structural provisions for a future mezzanine add practical utility. The exterior includes LP siding, an asphalt shingle roof, concrete aprons, and a paved asphalt lot.
Available services include electricity, natural gas, city water and sewer, and phone, cable, and internet. Association responsibilities cover lawn care, snow removal, refuse removal, and security. Commercial zoning supports a range of business and personal storage uses. Planned community features include gated access, security fencing, a wash bay, a dump station, and an owners' lounge. Upcoming unit improvements include a combination boiler/water heater, additional LED bay lighting, extra outlets, a 50-amp RV/camper outlet, a dehumidifier, and an exhaust fan.
Available services include electricity, natural gas, city water and sewer, and phone, cable, and internet. Association responsibilities cover lawn care, snow removal, refuse removal, and security. Commercial zoning supports a range of business and personal storage uses. Planned community features include gated access, security fencing, a wash bay, a dump station, and an owners' lounge. Upcoming unit improvements include a combination boiler/water heater, additional LED bay lighting, extra outlets, a 50-amp RV/camper outlet, a dehumidifier, and an exhaust fan.
Key Highlights
- 1,004‑square‑foot warehouse unit at B12‑721 Industrial Boulevard
- 14‑foot insulated overhead door with opener
- 100‑amp electrical service, in‑floor heat, LED lighting, and floor trench drain
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
$13,244
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
7.57%
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%
$264,880
$264.9K
Cap Rate 7%
$189,200
$189.2K
Cap Rate 9%
$147,156
$147.2K
Market Conditions
NOI Build-Up for 1,004 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
$16.3K $16.20/SF
− Vacancy
−$683 −$0.68/SF
EGI
$15.6K $15.52/SF
− OpEx
−$2.3K −$2.33/SF
NOI
$13.2K $13.19/SF
Area
Carver County, MN
Vacancy
4.20%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
15.00%
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%
$264,880
Cap Rate 7%
$189,200
Cap Rate 9%
$147,156
Alternative Uses
Best Use
Warehouse
$189.2K
$165.6K – $220.7K
NOI $13,244 @ 7.0% cap · market cap 7.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$239.5K
$209.6K – $279.5K
NOI $16,767 @ 7.0% cap · market cap 9.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Sprinkler system
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 55388, MN
5,984
Population
2,386
Households
2.5
Avg Household Size
39
Median Age
23%
College-Educated
96%
High-School Grad
37.6 sq mi
ZIP Area
159
Density / Sq Mi
$92,273
Median Household Income
$48,955
Median Earnings
$998
Median Rent
$333,100
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.
Frequently Asked Questions
What type of property is this?
Warehouse - Functional commercial unit with heat, utility service, storage-oriented improvements, and association-maintained exterior services.
Where is this warehouse located?
The property is located at B12-721 Industrial Boulevard Watertown, MN.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: 1,004‑square‑foot warehouse unit at B12‑721 Industrial Boulevard; 14‑foot insulated overhead door with opener; 100‑amp electrical service, in‑floor heat, LED lighting, and floor trench drain
