Restaurant Space with
For Sale
$2,695,000
1745 Parkside Dr, Madison, WI 53704
Restaurant space built for hibachi and sushi, featuring teppanyaki grill tables, prominent signage, and ample on-site parking.
Property Size10,120 SF
Price / SF$266.30
Days on Market53
Property Features for 1745 Parkside Dr
General Information
Standard status
Active
Size
10,120 SF
Amenities
prominent signage
on-site parking
Building Details
Year Built
1994
Listing Agency:
Key Commercial Real Estate, LLC
Listed By:
Mallory Rekoske · License #5687190
(608) 469-0384
Source:
Soldinmadison
Added: Jul 27
Changed: Sep 15
Last Checked: Sep 16 at 11:31PM
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 Key Commercial Real Estate, LLC
Investment Insights
Based on property information with market context.
This restaurant space is currently built out as a hibachi and sushi concept, with teppanyaki grill tables in place. The interior can be converted to a traditional dining layout or reconfigured for a wide range of non-restaurant uses.
The property is positioned along East Washington Ave, with visibility and prominent signage for passing traffic, supported by ample on-site parking.
Offered for sale, the buildout provides a ready-to-operate restaurant configuration while still allowing flexibility for alternative uses through interior reconfiguration.
The property is positioned along East Washington Ave, with visibility and prominent signage for passing traffic, supported by ample on-site parking.
Offered for sale, the buildout provides a ready-to-operate restaurant configuration while still allowing flexibility for alternative uses through interior reconfiguration.
Key Highlights
- Commercial space on East Washington Ave built out for a hibachi and sushi restaurant
- Includes teppanyaki grill tables and a hibachi/sushi restaurant layout
- Prominent signage on East Washington Ave
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
$164,399
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
6.10%
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%
$3,287,980
$3.3M
Cap Rate 7%
$2,348,557
$2.3M
Cap Rate 9%
$1,826,656
$1.8M
Market Conditions
NOI Build-Up for 10,120 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
$230.7K $22.80/SF
− Vacancy
−$11.5K −$1.14/SF
EGI
$219.2K $21.66/SF
− OpEx
−$54.8K −$5.42/SF
NOI
$164.4K $16.25/SF
Area
Madison, WI
Vacancy
5.00%
Lease Rate
$22.80 /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%
$3,287,980
Cap Rate 7%
$2,348,557
Cap Rate 9%
$1,826,656
Alternative Uses
Best Use
Specialty Retail
$2.35M
$2.05M – $2.74M
NOI $164,399 @ 7.0% cap · market cap 6.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.96M
$2.59M – $3.45M
NOI $206,934 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
990
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 53704, WI
47,066
Population
22,740
Households
2.1
Avg Household Size
38
Median Age
49%
College-Educated
96%
High-School Grad
21.9 sq mi
ZIP Area
2,149
Density / Sq Mi
$75,007
Median Household Income
$47,665
Median Earnings
$1,231
Median Rent
$289,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant space built for hibachi and sushi, featuring teppanyaki grill tables, prominent signage, and ample on-site parking.
Where is this conventional restaurant located?
The property is located at 1745 Parkside Dr Madison, WI.
What is the asking price?
The asking price for this property is $2,695,000.
What are key features of this property?
This property features: Commercial space on East Washington Ave built out for a hibachi and sushi restaurant; Includes teppanyaki grill tables and a hibachi/sushi restaurant layout; Prominent signage on East Washington Ave
