Customizable Office
For Sale
$245,000
107 S Third St Unit 3, Delavan, WI 53115
Planned core improvements leave the remaining build-out open for customization.
Property Size1,495 SF
Price / SF$163.88
Days on Market29
Property Features for 107 S Third St Unit 3
General Information
Standard status
Active
Size
1,495 SF
Additional Details
Utilities to Site
Yes
Listing Agency:
MELGES Real Estate, LLC
(262) 949-3374
Listed By:
Berisha Cary · License #93986-94
Source:
Jwregwi
Added: Aug 3
Changed: Aug 30
Last Checked: Aug 30 at 6:12PM
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-square-foot commercial suite will be delivered with drywall, lighting, electrical work, and core improvements completed. The remaining build-out can be customized for professional office, medical or healthcare, wellness and spa, boutique retail, or other approved business uses identified for the space.
The unit is located in Downtown Delavan’s Historic District, just off Brick Road, with visibility, convenient access, and abundant street parking. Renderings have been virtually enhanced, and the completed space may vary from the depicted finishes, layout, and build-out.
The unit is located in Downtown Delavan’s Historic District, just off Brick Road, with visibility, convenient access, and abundant street parking. Renderings have been virtually enhanced, and the completed space may vary from the depicted finishes, layout, and build-out.
Key Highlights
- Approximately 1,500 SF commercial suite
- Drywall, lighting, electrical, and core improvements completed before delivery
- Remaining build‑out can be customized
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
$13,119
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
5.35%
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%
$262,380
$262.4K
Cap Rate 7%
$187,414
$187.4K
Cap Rate 9%
$145,767
$145.8K
Market Conditions
NOI Build-Up for 1,495 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
$22.4K $15.00/SF
− Vacancy
−$4.9K −$3.30/SF
EGI
$17.5K $11.70/SF
− OpEx
−$4.4K −$2.93/SF
NOI
$13.1K $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%
$262,380
Cap Rate 7%
$187,414
Cap Rate 9%
$145,767
Alternative Uses
Best Use
Office B
$187.4K
$164.0K – $218.7K
NOI $13,119 @ 7.0% cap · market cap 5.35%
Second Best
Retail
$178.3K
$156.0K – $208.0K
NOI $12,478 @ 7.0% cap · market cap 5.09%
Theoretical Best
Specialty Retail
$288.5K
$252.5K – $336.6K
NOI $20,196 @ 7.0% cap · market cap 8.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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
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Frequently Asked Questions
What type of property is this?
Office units - Planned core improvements leave the remaining build-out open for customization.
Where is this office units located?
The property is located at 107 S Third St Unit 3 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 commercial suite; Drywall, lighting, electrical, and core improvements completed before delivery; Remaining build‑out can be customized
