Customizable Downtown Office
For Sale
$245,000
107 S Third St, Delavan, WI 53115
Commercial suite with core improvements in place and remaining build-out available for customization.
Property Size1,495 SF
Price / SF$163.33
Days on Market55
Property Features for 107 S Third St
General Information
Standard status
Active
Size
1,495 SF
Total Parking Spaces
10
Property subtype
Commercial
Zoning
Commercial
Additional Details
Utilities to Site
Yes
Building Details
Building Size
1,495 SF
Listing Agency:
MELGES Real Estate, LLC
(262) 949-3374
Listed By:
Berisha Cary · License #93986-94
(262) 949-3374
Source:
Therealtycompanyllc
Added: Jun 23
Changed: Aug 16
Last Checked: Aug 16 at 6:20AM
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 MELGES Real Estate, LLC
Investment Insights
Based on property information with market context.
This approximately 1,500 SF office unit is designed for a tailored interior build-out. Delivery includes drywall, lighting, electrical, and core improvements, leaving the remaining work open to the owner’s configuration and finish choices. The property is zoned Commercial and is suited to office-oriented occupancy within a flexible downtown setting.
The suite is located at 107 S Third St in Delavan’s Downtown Historic District, just off Brick Road. Street parking is available in the surrounding area, and the address provides convenient access within the downtown environment. Rendered images illustrate the anticipated completed space; actual finishes, layouts, and build-out may vary.
The suite is located at 107 S Third St in Delavan’s Downtown Historic District, just off Brick Road. Street parking is available in the surrounding area, and the address provides convenient access within the downtown environment. Rendered images illustrate the anticipated completed space; actual finishes, layouts, and build-out may vary.
Key Highlights
- Approximately 1,500 SF office unit
- Drywall, lighting, electrical, and core improvements included at delivery
- Remaining build‑out can be tailored to the owner’s specifications
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
$13,163
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
5.37%
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%
$263,260
$263.3K
Cap Rate 7%
$188,043
$188.0K
Cap Rate 9%
$146,256
$146.3K
Market Conditions
NOI Build-Up for 1,500 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
$22.5K $15.00/SF
− Vacancy
−$5.0K −$3.30/SF
EGI
$17.6K $11.70/SF
− OpEx
−$4.4K −$2.93/SF
NOI
$13.2K $8.78/SF
Area
Walworth County, WI
Vacancy
22.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
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%
$263,260
Cap Rate 7%
$188,043
Cap Rate 9%
$146,256
Alternative Uses
Best Use
Office B
$188.0K
$164.5K – $219.4K
NOI $13,163 @ 7.0% cap · market cap 5.37%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$289.5K
$253.3K – $337.7K
NOI $20,264 @ 7.0% cap · market cap 8.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
414
Businesses Nearby
Explore this area
Business Placement
Demographics for 53115, WI
15,884
Population
8,848
Households
1.8
Avg Household Size
43
Median Age
25%
College-Educated
89%
High-School Grad
71.9 sq mi
ZIP Area
221
Density / Sq Mi
$70,880
Median Household Income
$38,871
Median Earnings
$1,012
Median Rent
$225,900
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Commercial suite with core improvements in place and remaining build-out available for customization.
Where is this office units located?
The property is located at 107 S Third St Delavan, WI.
What is the asking price?
The asking price for this property is $245,000.
What are key features of this property?
This property features: Approximately 1,500 SF office unit; Drywall, lighting, electrical, and core improvements included at delivery; Remaining build‑out can be tailored to the owner’s specifications
