New Flex Space Garage
For Sale
$164,920
E11-721 Industrial Blvd, Watertown, MN
To-be-built commercial garage unit with insulated overhead door, in-floor heat, and rough-in plumbing.
Property Size1,005 SF
Price / SF$164.18
Days on Market455
Property Features for E11-721 Industrial Blvd
General Information
Standard status
Active
Size
1,005 SF
Warehouse & Industrial
Drive-In Doors
1
Power
100 amps
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$7,370
Amenities
lawn care
snow removal
garbage service
security fencing/entrance gates
Listing Agency:
Edina Realty, Inc.
(952) 334-4857
Listed By:
Butcher Real Estate Team
(952) 212-2374
Source:
Exprealty
Added: Jun 4, 2025
Changed: Aug 31
Last Checked: Aug 31 at 6:10PM
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.
Phase II will add a 1,004.5-square-foot flex space unit at the Workshops of Watertown. The planned 24-by-40-foot garage includes sheetrocked walls, a tin ceiling, a 16-foot-wide by 14-foot-high insulated overhead door with opener, two LED lights, in-floor heat, 100-amp electrical service, a floor trench drain, and a fire suppression system. A bathroom with shower is roughed in, while the structured concrete floor can support a future mezzanine. Exterior improvements include LP siding, an asphalt-shingled roof, concrete aprons, and an asphalt lot.
The property is zoned commercial, and the unit is designed for business use. Association services include lawn care, snow removal, garbage service, and security fencing with gated entry. A future wash bay and lounge are also planned for the development. The unit is located at E11-721 Industrial Blvd in Watertown, Minnesota.
The property is zoned commercial, and the unit is designed for business use. Association services include lawn care, snow removal, garbage service, and security fencing with gated entry. A future wash bay and lounge are also planned for the development. The unit is located at E11-721 Industrial Blvd in Watertown, Minnesota.
Key Highlights
- 1,004.5 SF to‑be‑built flex space unit in Phase II
- 24'x40' unit with 16'w x 14' h insulated garage door and opener
- 100 amp electrical service, in‑floor heat, 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
$13,621
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
8.26%
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%
$272,420
$272.4K
Cap Rate 7%
$194,586
$194.6K
Cap Rate 9%
$151,344
$151.3K
Market Conditions
NOI Build-Up for 1,005 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
$22.1K $21.96/SF
− Vacancy
−$1.1K −$1.10/SF
EGI
$21.0K $20.86/SF
− OpEx
−$7.3K −$7.30/SF
NOI
$13.6K $13.56/SF
Area
Carver 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%
$272,420
Cap Rate 7%
$194,586
Cap Rate 9%
$151,344
Alternative Uses
Best Use
Flex RnD
$194.6K
$170.3K – $227.0K
NOI $13,621 @ 7.0% cap · market cap 8.26%
Second Best
Warehouse
$189.3K
$165.6K – $220.9K
NOI $13,251 @ 7.0% cap · market cap 8.03%
Theoretical Best
Office A
$239.7K
$209.7K – $279.6K
NOI $16,776 @ 7.0% cap · market cap 10.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
300
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
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?
Flex space - To-be-built commercial garage unit with insulated overhead door, in-floor heat, and rough-in plumbing.
Where is this flex space located?
The property is located at E11-721 Industrial Blvd Watertown, MN.
What is the asking price?
The asking price for this property is $164,920.
What are key features of this property?
This property features: 1,004.5 SF to‑be‑built flex space unit in Phase II; 24'x40' unit with 16'w x 14' h insulated garage door and opener; 100 amp electrical service, in‑floor heat, and floor trench drain
