Downtown Flex
For Sale
$245,000
107 S Third St, Delavan, WI 53115
COMMERCIAL - Delavan, WI
Property Size1,545 SF
Lot Size0.30 Acres
Price / SF$158.58
Days on Market50
Property Features for 107 S Third St
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
commercial
Directions
I-43 to Hwy 50 West to Hwy 11 W to Third Street, South to the building.
Standard status
Active
APN
XOP 00087
Size
1,545 SF
Lot size
0.30 Acres
Taxes and HOA fees
Tax Year
2025
Building Details
Architectural style
Other
Listing Agency:
MELGES Real Estate, LLC
(262) 249-7653
Listed By:
Berisha Cary · License #93986-94
(262) 949-3374
Added: Jun 23
Changed: Aug 4
Last Checked: Aug 11 at 5:06PM
MLS# 1968863
Copyright © 2026 Metro MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This commercial flex suite is positioned for a customized interior build-out, with drywall, lighting, electrical service, and core improvements scheduled for completion before delivery. The remaining work can be adapted to support professional office, medical or healthcare, wellness and spa, boutique retail, or similar business uses identified for the space.
The property is at 107 S Third St in Delavan’s Downtown Historic District, just off Brick Road. Its setting includes convenient access and street parking, providing a practical environment for businesses seeking a central commercial presence. Final finishes and configuration may vary from the virtually enhanced renderings.
The property is at 107 S Third St in Delavan’s Downtown Historic District, just off Brick Road. Its setting includes convenient access and street parking, providing a practical environment for businesses seeking a central commercial presence. Final finishes and configuration may vary from the virtually enhanced renderings.
Key Highlights
- Flex space in Delavan’s Downtown Historic District
- Commercial zoning supports a range of business uses
- Delivery includes drywall, lighting, electrical, and core improvements
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
$18,627
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
7.60%
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%
$372,540
$372.5K
Cap Rate 7%
$266,100
$266.1K
Cap Rate 9%
$206,967
$207.0K
Market Conditions
NOI Build-Up for 1,545 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
$33.9K $21.96/SF
− Vacancy
−$2.9K −$1.87/SF
EGI
$31.0K $20.09/SF
− OpEx
−$12.4K −$8.04/SF
NOI
$18.6K $12.06/SF
Area
Walworth County, WI
Vacancy
8.50%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
40.00%
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%
$372,540
Cap Rate 7%
$266,100
Cap Rate 9%
$206,967
Alternative Uses
Best Use
Healthcare Medical
$266.1K
$232.8K – $310.5K
NOI $18,627 @ 7.0% cap · market cap 7.60%
Second Best
Flex RnD
$229.8K
$201.1K – $268.1K
NOI $16,086 @ 7.0% cap · market cap 6.57%
Theoretical Best
Specialty Retail
$298.2K
$260.9K – $347.9K
NOI $20,871 @ 7.0% cap · market cap 8.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
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 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?
Flex space - Commercially zoned suite with core improvements and flexibility for office, healthcare, wellness, or boutique 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: Flex space in Delavan’s Downtown Historic District; Commercial zoning supports a range of business uses; Delivery includes drywall, lighting, electrical, and core improvements
