By the Closer Look Inspectors team · Facts checked October 2026 against the sources listed below · About our inspectors
A commercial property inspection helps a Prior Lake buyer or owner learn how a lake-and-railroad town's buildings have fared. The village was platted in 1871, the lake was essentially landlocked until an outlet channel was built in 1983, and the city names five primary commercial areas, from downtown to its industrial parks.
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Commercial buildings in and around Prior Lake
A railroad village with a resort-hotel past
Prior Lake was platted in 1871, the year the railroad was routed through and cut the lake in two. A city-hosted downtown history says that apart from the depot store, construction in town began in 1872, with a hotel begun in 1884 and a livery barn built in 1887 just north of it.
The Grainwood Hotel opened on May 15, 1879, catering to wealthy visitors from the East and as far south as the Gulf States, with room for about 150 guests and cottages. It burned in the spring of 1894, was rebuilt at once, and burned to the ground in 1923; it was never rebuilt. A fire history like that is a reminder that a building's age says less than what has been rebuilt inside it.
A later layer sits at Main Avenue and Pleasant Street, where the Prior Lake American reported in November 2020 that the VFW building dated back to the 1930s and was formerly a movie theatre, and that a downtown redevelopment plan called for relocating the VFW to a newly constructed building. Former theatres and other old assembly buildings, with large open rooms and wide roof spans, are their own category of condition question.
Five commercial areas
The city's economic development page names five primary commercial areas. Downtown is home to many restaurants, retailers, service providers and offices. Gateway is about 15 acres bordering downtown to the northeast, offering office park and retail opportunities. Village Commerce/South Lake Village is about 80 acres of highway-oriented businesses, retailers, service providers and offices bordering Highway 13. Commerce Avenue/Fountain Hills is about 20 acres on the north side of the city, south of CSAH 42.
The fifth, the Deerfield Business Park/Waterfront Passage/Welcome Industrial Park area, covers over 150 acres in southeastern Prior Lake and is home to manufacturers, distributors and highway and service-oriented businesses. The city says it has grown from 15,917 people in 2000 to 29,780 in 2025.
Buildings of different ages call for different questions: roofs and rooftop units on newer retail and office buildings, and masonry, wiring and past repairs on older ones. Near a lake, damp insulation and envelope leaks are the quiet problems, and thermal imaging is one way to see moisture patterns without cutting into walls or roofs.
A lake that had no outlet until 1983
The Prior Lake-Spring Lake Watershed District says Prior Lake was essentially a landlocked basin until an outlet structure and channel were constructed in 1983. Lake associations had petitioned in 1973 for an outlet to carry stormwater from the landlocked lakes. The water level varies around elevation 902 feet above sea level.
The Prior Lake Outlet Channel works to address high lake level issues on Prior Lake and also serves as a trunk stormwater system for the cities of Prior Lake and Shakopee and the Shakopee Mdewakanton Sioux Community. For buildings along the shore or in low spots, the building-side questions are groundwater, basements, sump systems and how stormwater leaves the lot.
Commercial buildings we inspect
Quick answers
What are the commercial areas in Prior Lake?
The city names five: Downtown, Gateway, Village Commerce/South Lake Village along Highway 13, Commerce Avenue/Fountain Hills, and the Deerfield Business Park/Waterfront Passage/Welcome Industrial Park area, which covers over 150 acres and is home to manufacturers and distributors.
Has lake level been an issue for Prior Lake buildings?
The watershed district says Prior Lake was essentially landlocked until an outlet channel was built in 1983, and that the channel addresses high lake level issues. The lake varies around 902 feet above sea level. For a building near the shore, groundwater and runoff move with the lake.
When did downtown Prior Lake take shape?
Prior Lake was platted in 1871. A city-hosted downtown history says construction began in 1872, with a hotel begun in 1884 and a livery barn built in 1887. In November 2020 the Prior Lake American described the VFW building at Main Avenue and Pleasant Street as dating to the 1930s and formerly a movie theatre, with a plan to relocate the VFW.
Sources
- City of Prior Lake: History of Downtown (written by Mrs. Clement Felix)
- City of Prior Lake: Economic Development
- Prior Lake-Spring Lake Watershed District: About
- Prior Lake-Spring Lake Watershed District: water bodies and outlet channel
- Prior Lake American: Plans for redevelopment, street reconstruction in downtown Prior Lake resume (Nov. 27, 2020)
Nearby towns
Commercial property inspection in Minnesota and Iowa · Home inspection in Prior Lake
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