Freestanding Office and Meeting
For Sale
$350,000
263 Madison Avenue, Wood River, IL 62095
Full-brick building on a corner lot with office space, meeting rooms, and partially finished lower-level area.
Property Size1,563 SF
Lot Size0.50 Acres
Days on Market563
Property Features for 263 Madison Avenue
General Information
Standard status
Active
Size
1,563 SF
Lot size
0.50 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$9,165
Building Details
Building Size
1,563 SF
Year Built
1994
Buildings
2
Stories
1
Construction
brick
Abandoned
No
Listing Agency:
Nester Realty
(618) 624-0400
Listed By:
Pat Schaeffer · License #475147098
(618) 567-4949
Source:
Century21laclede
Added: Feb 18, 2025
Changed: Sep 4
Last Checked: Sep 1 at 8:34PM
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 Nester Realty
Investment Insights
Based on property information with market context.
This full-brick, freestanding building sits on a half-acre corner lot and includes office space and meeting room(s), along with ample storage. The lower level is partially finished, providing additional usable space beyond the main level. An outbuilding on the property can be used as a workshop or for additional storage, supporting a range of operational needs. The property is currently used as a meeting hall and office space.
The site benefits from a high-traffic setting with an average daily vehicle count of 12,300, and it is located in a TIF and enterprise zone.
With its corner-lot location, dedicated meeting and office areas, and both interior and outbuilding storage options, the property is positioned for business uses that need flexible space within a compact footprint.
The site benefits from a high-traffic setting with an average daily vehicle count of 12,300, and it is located in a TIF and enterprise zone.
With its corner-lot location, dedicated meeting and office areas, and both interior and outbuilding storage options, the property is positioned for business uses that need flexible space within a compact footprint.
Key Highlights
- Full‑brick, free‑standing building on a 1/2‑acre corner lot
- Includes office space and meeting room(s)
- Partially finished lower level provides additional room
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
$24,758
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
7.07%
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%
$495,160
$495.2K
Cap Rate 7%
$353,686
$353.7K
Cap Rate 9%
$275,089
$275.1K
Market Conditions
NOI Build-Up for 1,563 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
$37.5K $24.00/SF
− Vacancy
−$4.5K −$2.88/SF
EGI
$33.0K $21.12/SF
− OpEx
−$8.3K −$5.28/SF
NOI
$24.8K $15.84/SF
Area
Madison County, IL
Vacancy
12.00%
Lease Rate
$24.00 /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%
$495,160
Cap Rate 7%
$353,686
Cap Rate 9%
$275,089
Alternative Uses
Best Use
Office B
$353.7K
$309.5K – $412.6K
NOI $24,758 @ 7.0% cap · market cap 7.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$426.0K
$372.8K – $497.0K
NOI $29,822 @ 7.0% cap · market cap 8.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
475
Businesses Nearby
Explore this area
Business Placement
Demographics for 62095, IL
11,060
Population
5,186
Households
2.1
Avg Household Size
40
Median Age
16%
College-Educated
94%
High-School Grad
7.1 sq mi
ZIP Area
1,558
Density / Sq Mi
$66,641
Median Household Income
$41,932
Median Earnings
$919
Median Rent
$106,700
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 building - Full-brick building on a corner lot with office space, meeting rooms, and partially finished lower-level area.
Where is this office building located?
The property is located at 263 Madison Avenue Wood River, IL.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Full‑brick, free‑standing building on a 1/2‑acre corner lot; Includes office space and meeting room(s); Partially finished lower level provides additional room
