Calculate cap rates and net operating income for commercial properties in Minnesota. Compare your results against Minnesota's primary market benchmarks sourced from CBRE H2 2025.
Minneapolis-Saint Paul is a diversified primary market anchored by Fortune 500 headquarters (Target, UnitedHealth Group, Best Buy, 3M, General Mills, Cargill). The Twin Cities have strong fundamentals across all asset classes. Rochester hosts Mayo Clinic, the world's leading medical center, driving exceptional healthcare real estate demand. Industrial in the I-94 and I-494 corridors is strong for logistics.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.0% | 6.5% |
| Industrial | 5.5% | 7.0% |
| Retail | 5.5% | 7.5% |
| Office | 6.5% | 9.0% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Minnesota cap rates range from 5.0–6.5% for multifamily, 5.5–7.0% for industrial, 5.5–7.5% for retail, and 6.5–9.0% for office. Minneapolis-Saint Paul has competitive primary market rates driven by its exceptional corporate headquarters concentration.
Minneapolis has an exceptional Fortune 500 concentration (Target, UnitedHealth, Best Buy, 3M, General Mills, Cargill, US Bancorp, Xcel Energy) that provides diverse, stable office demand. The biomedical device cluster (Medtronic, Becton Dickinson) drives specialized industrial demand. Mall of America drives retail traffic to the Bloomington submarket.
Rochester hosts Mayo Clinic, consistently ranked the #1 hospital in the US. The clinic is the city's dominant employer and drives exceptional demand for medical office, research facilities, and workforce housing. Rochester has more PhDs per capita than any other US city and attracts significant healthcare real estate investment.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.