Customizable Flex
For Sale
$245,000
107 S Third St, Delavan, WI 53115
Commercial suite delivered with core improvements, enabling customized completion for office, healthcare, wellness, or retail use.
Property Size1,495 SF
Price / SF$163.88
Days on Market19
Property Features for 107 S Third St
General Information
Standard status
Active
Size
1,495 SF
Listing Agency:
MELGES Real Estate, LLC
(262) 949-3374
Listed By:
Berisha Cary · License #93986-94
Source:
Nikolicgroup
Added: Aug 12
Changed: Aug 29
Last Checked: Aug 29 at 11:29AM
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 1,495-square-foot flex suite is planned for delivery with drywall, lighting, electrical service, and core improvements in place. The remaining build-out can be completed around the occupant’s requirements, supporting a range of professional, healthcare, wellness, spa, and boutique retail formats. Actual finishes and layouts may vary from the rendered imagery.
The property is situated in Downtown Delavan’s Historic District, just off Brick Road. The location offers convenient access, street visibility, and abundant street parking. Its unfinished configuration provides flexibility for creating a tailored commercial environment within an established downtown setting.
The property is situated in Downtown Delavan’s Historic District, just off Brick Road. The location offers convenient access, street visibility, and abundant street parking. Its unfinished configuration provides flexibility for creating a tailored commercial environment within an established downtown setting.
Key Highlights
- Approximately 1,495 SF commercial flex suite
- Drywall, lighting, electrical, and core improvements included at delivery
- Remaining build‑out can be customized to the occupant’s requirements
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
$15,565
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
6.35%
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%
$311,300
$311.3K
Cap Rate 7%
$222,357
$222.4K
Cap Rate 9%
$172,944
$172.9K
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
$25.5K $17.04/SF
− Vacancy
−$1.5K −$1.02/SF
EGI
$23.9K $16.02/SF
− OpEx
−$8.4K −$5.61/SF
NOI
$15.6K $10.41/SF
Area
Walworth County, WI
Vacancy
6.00%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
35.00%
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%
$311,300
Cap Rate 7%
$222,357
Cap Rate 9%
$172,944
Alternative Uses
Best Use
Flex RnD
$222.4K
$194.6K – $259.4K
NOI $15,565 @ 7.0% cap · market cap 6.35%
Second Best
Industrial
$178.3K
$156.0K – $208.1K
NOI $12,483 @ 7.0% cap · market cap 5.10%
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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
414
Businesses Nearby
Under-served
Demand for This Use
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 Industrial 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?
Flex space - Commercial suite delivered with core improvements, enabling customized completion for office, healthcare, wellness, or retail use.
Where is this flex space 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 1,495 SF commercial flex suite; Drywall, lighting, electrical, and core improvements included at delivery; Remaining build‑out can be customized to the occupant’s requirements
