Building Details

Year Built 2016

Listing Agency: Madison Commercial Real Estate LLC m***@madisoncommercialre.com Show Phone

Listed By: Mike Herl · License #5120090

Source: Viewhomesinwisconsin

Added: Aug 16 Changed: Aug 29 Last Checked: Aug 30 at 6:01PM

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Investment Insights

Based on property information with market context.

This 2,100-square-foot flex space is configured as an industrial condominium with mezzanine space and one overhead door. Constructed in 2016, the property offers a practical combination of adaptable commercial area and elevated interior space for business operations or storage-related needs.

The property is located at 11014 Blackhawk in Blue Mounds, Wisconsin, with visibility from Highway 18/151. Its flex-space classification and industrial condominium format provide a straightforward option for an owner-user or commercial occupant seeking a dedicated property with direct overhead access.

Key Highlights

• 2,100‑square‑foot flex space
• Mezzanine space included
• One overhead door

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

$25,036

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

6.81%

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%

$500,720 $500.7K

Cap Rate 7%

$357,657 $357.7K

Cap Rate 9%

$278,178 $278.2K

Market Conditions

NOI Build-Up for 2,100 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

$30.2K $14.40/SF

− Vacancy

−$786 −$0.37/SF

EGI

$29.5K $14.03/SF

− OpEx

−$4.4K −$2.10/SF

NOI

$25.0K $11.92/SF

Area

Dane County, WI

Vacancy

2.60%

Lease Rate

$14.40 /SF/Yr

Expense Ratio

15.00%

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%

$500,720

Cap Rate 7%

$357,657

Cap Rate 9%

$278,178

Alternative Uses

Best Use

Warehouse

$357.7K

$313.0K – $417.3K (±1% cap)

NOI $25,036 @ 7.0% cap · market cap 6.81%

Second Best

Industrial

$294.5K

$257.7K – $343.6K (±1% cap)

NOI $20,618 @ 7.0% cap · market cap 5.61%

Theoretical Best

Office A

$488.0K

$427.0K – $569.3K (±1% cap)

NOI $34,160 @ 7.0% cap · market cap 9.30%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

A+ Plumbing Plumbing Service Pure Waters Big Box & Wholesale Store

Suggested Use

Top Pick Auto Repair Shop Building Supply HVAC Service Electrical Service Storage Facility Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

40

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 53517, WI

1,892

Population

834

Households

2.3

Avg Household Size

44

Median Age

35%

College-Educated

97%

High-School Grad

45.9 sq mi

ZIP Area

41

Density / Sq Mi

$74,722

Median Household Income

$46,030

Median Earnings

$1,133

Median Rent

$410,600

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Flex space - Built in 2016, this flexible commercial property includes mezzanine space and overhead-door access.

Where is this flex space located?

The property is located at 11014 Blackhawk Blue Mounds, WI.

What is the asking price?

The asking price for this property is $367,500.

What are key features of this property?

This property features: 2,100‑square‑foot flex space; Mezzanine space included; One overhead door