Wright County Commercial Real Estate Market Update – December 2025
Buffalo | Monticello | St. Michael | Albertville | Otsego | Delano | Annandale | Montrose
As 2025 wraps up, the Wright County commercial real estate market remains steady, healthy, and active across all major sectors — retail, office, industrial, and flex. Pulling updated data from LoopNet, Crexi, and direct owner outreach, this month’s analysis provides a hyper-local look at Buffalo, Monticello, St. Michael, Albertville, Otsego, Delano, and surrounding communities.
This report is designed for local property owners, tenants, investors, and developers who want to understand real-time activity, lease rates, development trends, and what to expect heading into 2026.
Wright County CRE Market Update
Market Snapshot — December 2025
Countywide Commercial Inventory Overview
For Lease — ~65 Marketed Spaces Across Wright County
(Down slightly from ~74 in November — consistent with year-end renewals and quieter December marketing.)
Breakdown by property type:
Retail: ~20 active listings
Office: ~21 active listings
Industrial / Flex: ~10–12 active listings
Other (medical, mixed-use, specialty): ~6 active listings
For Sale — 90+ Commercial Properties Countywide
Countywide inventory currently includes:
26+ retail buildings for sale
20+ office buildings for sale
30+ industrial properties for sale
30+ commercial land parcels across Buffalo, Monticello, St. Michael, Otsego, and Delano
Owner-user demand remains strong, particularly for small industrial flex buildings and professional office space under 10,000 SF.
Current Asking Lease Rates in Wright County (December 2025)
Retail Lease Rates
$14–$23/SF/YR (Gross or Modified Gross typical)
Prime areas (Albertville, St. Michael, Monticello Hwy 25 corridor): mid-to-upper teens
New construction & high-visibility retail: low-$20s
Older downtown or neighborhood retail (Delano, Cokato): sometimes under $10/SF/YR
Most common availabilities: 1,500–3,000 SF inline suites ideal for
boutique fitness
food/coffee concepts
medical users
service retail
Office Lease Rates
$12–$18/SF/YR (Gross or Modified Gross)
Class B/C dominates the market
$12–$15/SF/YR is the most common range
Medical, modern professional buildings & fully updated suites achieve higher rates
Suites under 3,000 SF continue to be the quickest to lease in Buffalo, Monticello, Delano & Annandale
Key driver:
Landlords updating lighting, flooring, and paint see noticeably faster inquiry volume.
Industrial / Flex Lease Rates
$10–$12/SF/YR NNN for existing small-bay inventory
$15/SF/YR NNN for planned new construction in the St. Michael/Otsego I-94 corridor
This remains the strongest asset class in Wright County.
Tenant demand is highest for:
1,200–5,000 SF flex bays
drive-in OH doors
simple office buildouts
proximity to I-94 or Hwy 12
Vacancy in this segment is typically short-lived when priced correctly.
Retail & Office — What’s Actually Moving Right Now
Retail Sector (December Recap)
Retail remains resilient across:
Monticello (Hwy 25 & I-94): new pad developments, Starbucks open, Valvoline & Fairfield by Marriott + Boulder Tap House underway
St. Michael / Albertville / Otsego: strong household growth and incoming Costco traffic
Buffalo: revitalized downtown activity near the lake; inquiries up for boutique retail, food/beverage, and walkable locations
Openings most common:
1,500–3,000 SF inline spaces with strong signage and parking.
Where vacancy persists:
Class C retail strips that haven’t renovated facades/signage.
Office Sector (December Recap)
The Wright County office market remains steady, not distressed, with strong demand for functional office suites:
Areas performing well:
Buffalo (professional, medical, financial users)
Monticello / Delano / Annandale (counseling, service office, small business users)
Notable office trend:
Owner-occupied buildings are increasingly open to leasing extra suites or second floors — often before hitting public market.
Industrial & Flex — Still the County’s Top Performer
Industrial and flex continue to lead all Wright County commercial categories.
Current Themes:
Tight supply in the 1,200–5,000 SF range
Quick absorption when listed publicly
Strong demand from tradespeople, light manufacturers, and contractors
Hotspots for Industrial Activity:
St. Michael & Otsego: Emerging I-94 industrial node with 2026–2027 new construction (multi-tenant industrial and larger distribution buildings)
Monticello: Strong driver of small-bay activity
Delano: Expansions of Northwest Industrial Park with DEED support
This category is expected to remain the strongest in Q1–Q2 2026.
Major Wright County Developments & Growth Drivers Heading Into 2026
1. Costco in Otsego/St. Michael Corridor
Under construction, projected Fall 2026 opening
Supported by major road improvements on CSAH 37, MacIver Ave & I-94 interchange
Impact on CRE:
Boosts surrounding retail, QSR, auto services, medical, and grocery-adjacent concepts
Raises land & pad values
Pulls more regional traffic from the metro
2. Buffalo Waterfront & Downtown Redevelopment
Buffalo is undergoing meaningful long-term reinvestment including:
Proposed 900+ new housing units across multiple developments
Stronger demand for neighborhood retail, walkable office, food/beverage
Growing attention on the Wright County Government Center site for potential mixed-use redevelopment
Increasing off-market movement from longtime owners
Buffalo’s downtown will remain one of the most interesting submarkets to watch into 2026.
3. Delano & Monticello — Quality-of-Life & Industrial Investment
Delano is benefiting from:
Park and riverfront redevelopment
Central Park master plan
Continued industrial expansion supported by state infrastructure funding
Monticello has invested in:
Streetscaping
Pedestrian improvements
Downtown revitalization around Walnut Street & the Mississippi River
Both cities are attracting small retail, office, and service-based tenants.
4. I-94 Expansion (Albertville → Monticello)
Six-lane expansion underway, targeting full opening by late 2026
Expected to improve freight movement, commuter flow, and visibility for industrial & hospitality uses
Key December 2025 Commercial Real Estate Trends
Small-Bay Industrial Still Outperforms
Availability remains tight and demand strong.Experience-Based Retail Growing
Boutique fitness, coffee, breweries/taprooms, and small medical operators are the most active retail tenants.Owners Who Update Older Buildings Win
LED lighting, fresh flooring, new paint — small improvements = major leasing impact.Owner-User Buildings Quietly Changing Hands
Downsizing, retirement, and consolidation continue to unlock off-market deals.
What This Means for Wright County Property Owners
Pricing Strategy
Lease rates across all sectors are stabilizing.
Overpricing leads to vacancy; underpricing leaves money on the table.
Exposure Matters
Listings with strong exposure (LoopNet, Crexi, signage, broker networks) lease significantly faster than unadvertised “quiet listings.”
Tenant Fit Is More Important Than Speed
Especially for older buildings, securing the right tenant mix is key.
Local Demand Is Strong
Buffalo, Monticello, St. Michael, Albertville, Otsego, and Delano tenants are actively seeking quality space heading into 2026.
📩 Final Thoughts – December 2025
Wright County is closing 2025 with a commercially healthy environment:
Industrial and flex remain the standout categories.
Retail is strong in growth corridors and walkable downtowns.
Office is competitive but absolutely leaseable when priced and finished correctly.
Major infrastructure and development projects will continue strengthening the region into 2026–2027.
If you’d like help evaluating lease rates, sale pricing, tenant demand, or positioning your building for Q1 2026, I’d be happy to provide a custom property analysis.
Fortify Commercial
Commercial Real Estate in Wright County and Surrounding Areas
info@fortifycommercial.com
763-200-1440