Flex Space with Private
For Sale
$160,000
2256 Madison Avenue, Granite City, IL 62040
Finished interiors, ADA-compliant restrooms, and a lighted exterior sign support immediate commercial occupancy.
Property Size3,840 SF
Days on Market166
Property Features for 2256 Madison Avenue
General Information
Standard status
Active
Size
3,840 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$4,536
Amenities
lighted exterior advertising sign
Building Details
Building Size
3,840 SF
Year Built
1940
Buildings
1
Stories
1
Construction
I-beams and wood trusses
Listing Agency:
The Auction House Company
(618) 344-3545
Listed By:
Bill Scaturro · License #RASI
(618) 344-3545
Source:
Exit2newbeginningz
Added: Feb 26
Changed: Aug 8
Last Checked: Aug 10 at 10:39AM
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 The Auction House Company
Investment Insights
Based on property information with market context.
This flex-space building combines durable commercial construction with a finished interior suited to immediate business use. The structure features oversized I-beams, heavy-duty wood trusses, a recently coated roof, and finished drywall throughout. Its interior arrangement includes a defined entry hallway, coat area, three private offices, and two ADA-compliant restrooms with double sinks and toilets.
A lighted exterior advertising sign is already installed for business identification. The property is located at 2256 Madison Avenue in Granite City, Illinois, and includes ample parking and strong visibility as described in the property information. The adaptable layout can accommodate a range of commercial applications, including retail storefront, professional office, laundromat, showroom, or climate-controlled mini storage use.
A lighted exterior advertising sign is already installed for business identification. The property is located at 2256 Madison Avenue in Granite City, Illinois, and includes ample parking and strong visibility as described in the property information. The adaptable layout can accommodate a range of commercial applications, including retail storefront, professional office, laundromat, showroom, or climate-controlled mini storage use.
Key Highlights
- Industrial‑grade construction with oversized I‑beams and heavy‑duty wood trusses
- Recently coated roof with finished drywall throughout
- Three private offices and a defined hallway entrance
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
$14,192
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
8.87%
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%
$283,840
$283.8K
Cap Rate 7%
$202,743
$202.7K
Cap Rate 9%
$157,689
$157.7K
Market Conditions
NOI Build-Up for 3,840 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
$24.4K $6.36/SF
− Vacancy
−$2.6K −$0.67/SF
EGI
$21.8K $5.69/SF
− OpEx
−$7.6K −$1.99/SF
NOI
$14.2K $3.70/SF
Area
Madison County, IL
Vacancy
10.60%
Lease Rate
$6.36 /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%
$283,840
Cap Rate 7%
$202,743
Cap Rate 9%
$157,689
Alternative Uses
Best Use
Office B
$868.9K
$760.3K – $1.01M
NOI $60,826 @ 7.0% cap · market cap 38.02%
Second Best
Retail
$673.2K
$589.1K – $785.4K
NOI $47,126 @ 7.0% cap · market cap 29.45%
Theoretical Best
Office A
$1.05M
$915.8K – $1.22M
NOI $73,267 @ 7.0% cap · market cap 45.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
712
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 62040, IL
40,872
Population
18,842
Households
2.2
Avg Household Size
41
Median Age
16%
College-Educated
89%
High-School Grad
39.9 sq mi
ZIP Area
1,024
Density / Sq Mi
$60,558
Median Household Income
$40,963
Median Earnings
$852
Median Rent
$106,600
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 - Finished interiors, ADA-compliant restrooms, and a lighted exterior sign support immediate commercial occupancy.
Where is this flex space located?
The property is located at 2256 Madison Avenue Granite City, IL.
What is the asking price?
The asking price for this property is $160,000.
What are key features of this property?
This property features: Industrial‑grade construction with oversized I‑beams and heavy‑duty wood trusses; Recently coated roof with finished drywall throughout; Three private offices and a defined hallway entrance
