Industrial Flex Investment
For Sale
Contact for pricing
Pending
2725 ARBOR CT, Eau Claire, WI 54701
Fully leased flex-style building supports office and warehouse operations with multiple 14-foot doors and loading access.
Property Size23,248 SF
Days on Market89
Property Features for 2725 ARBOR CT
General Information
Standard status
Pending
Size
23,248 SF
Class
B
Property subtype
Office, Industrial
Zoning
Industrial
Occupancy
100%
Additional Details
Drive-In Doors
7
Building Details
Year Built
1984
Buildings
1
Stories
1
Units
1
Tenancy
Multi
Listing Agency:
Trillium Commercial Realty
(715) 874-4225
Listed By:
Scott Knepper · License #WI 85731-94
Source:
Crexi
Added: Jun 5
Changed: Aug 17
Last Checked: Aug 16 at 3:56PM
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 Trillium Commercial Realty
Investment Insights
Based on property information with market context.
This fully leased commercial property is configured for both office and warehouse use, combining a dedicated office area with two restrooms including a shower. The building includes seven 14-foot doors plus a loading dock, and it supports industrial workflows with a floor drain, distributed air drop, make-up air unit, in-floor heat, and an upgraded boiler. Additional operational upgrades include hot water power wash and LED lighting. The property also includes a commercial air compressor, providing added functionality for service and industrial tenants.
The investment structure includes two professional tenants in place with seven years remaining on the lease term. Ongoing costs are partially supported through tenant reimbursement of applicable operating expenses, and the lease includes 3% annual rent increases.
For buyers seeking an owned, stabilized commercial asset, the layout and improvements are geared toward tenants who need real warehouse access alongside office support in the same building. The combination of multiple loading/door openings and built-in utilities such as in-floor heat and make-up air supports year-round operations and flexible use across industrial and light service demands.
The investment structure includes two professional tenants in place with seven years remaining on the lease term. Ongoing costs are partially supported through tenant reimbursement of applicable operating expenses, and the lease includes 3% annual rent increases.
For buyers seeking an owned, stabilized commercial asset, the layout and improvements are geared toward tenants who need real warehouse access alongside office support in the same building. The combination of multiple loading/door openings and built-in utilities such as in-floor heat and make-up air supports year-round operations and flexible use across industrial and light service demands.
Key Highlights
- Fully leased commercial investment with two professional tenants and seven years remaining on the lease term
- Tenant reimbursement of applicable operating expenses plus 3% annual rent increases
- Tenant invested $500,000 into a remodel for added value and improved functionality
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
$185,459
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
7.13%
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%
$3,709,180
$3.7M
Cap Rate 7%
$2,649,414
$2.6M
Cap Rate 9%
$2,060,656
$2.1M
Market Conditions
NOI Build-Up for 23,248 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
$220.4K $9.48/SF
− Vacancy
−$2.2K −$0.09/SF
EGI
$218.2K $9.39/SF
− OpEx
−$32.7K −$1.41/SF
NOI
$185.5K $7.98/SF
Area
Eau Claire County, WI
Vacancy
1.00%
Lease Rate
$9.48 /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%
$3,709,180
Cap Rate 7%
$2,649,414
Cap Rate 9%
$2,060,656
Alternative Uses
Best Use
Industrial
$26.24M
$22.96M – $30.61M
NOI $1,836,638 @ 7.0% cap · market cap 70.64%
Second Best
Warehouse
$2.65M
$2.32M – $3.09M
NOI $185,459 @ 7.0% cap · market cap 7.13%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Drive-in doors
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
428
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 54701, WI
41,346
Population
17,932
Households
2.3
Avg Household Size
35
Median Age
42%
College-Educated
98%
High-School Grad
86.0 sq mi
ZIP Area
481
Density / Sq Mi
$71,406
Median Household Income
$37,658
Median Earnings
$963
Median Rent
$265,000
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Bar BQ Express — 3436 jill ave #7019, eau claire, wi 54701
Frequently Asked Questions
What type of property is this?
Flex space - Fully leased flex-style building supports office and warehouse operations with multiple 14-foot doors and loading access.
Where is this flex space located?
The property is located at 2725 ARBOR CT Eau Claire, WI.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: Fully leased commercial investment with two professional tenants and seven years remaining on the lease term; Tenant reimbursement of applicable operating expenses plus 3% annual rent increases; Tenant invested $500,000 into a remodel for added value and improved functionality
