Renovated Medical Office
New
For Sale
$349,900
3005 Rapids Dr, Racine, WI 53404
Flexible professional layout with treatment rooms, client reception, private parking, and additional storage.
Property Size1,220 SF
Price / SF$286.80
Days on Market3
Property Features for 3005 Rapids Dr
General Information
Standard status
Active
Size
1,220 SF
Building Details
Year Built
1958
Listing Agency:
Re/Max Advantage
Listed By:
Danielle Welker · License #6627094
(847) 395-3000
Source:
Grandviewrealtyservices
Added: Sep 21
Last Checked: Sep 21 at 2:36PM
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 Re/Max Advantage
Investment Insights
Based on property information with market context.
This 1,220-square-foot medical office property has operated as a med spa and received extensive renovations since 2021. The interior includes a reception and waiting area, three private treatment rooms with individual sinks, a break room that can function as another treatment room or private office, and a restroom. A partial basement adds storage capacity.
The fully enclosed lot provides a private setting for clients and staff, with nine on-site parking spaces. Located at 3005 Rapids Dr in Racine, the property supports a range of professional applications, including medical, wellness, aesthetics, chiropractic, counseling, dental, insurance, accounting, legal, and general office uses. The existing layout also allows treatment rooms or office areas to be leased individually.
The fully enclosed lot provides a private setting for clients and staff, with nine on-site parking spaces. Located at 3005 Rapids Dr in Racine, the property supports a range of professional applications, including medical, wellness, aesthetics, chiropractic, counseling, dental, insurance, accounting, legal, and general office uses. The existing layout also allows treatment rooms or office areas to be leased individually.
Key Highlights
- 1,220 SF medical office property
- Extensive renovations completed since 2021
- Three treatment rooms, each with its own sink
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
$15,756
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
4.50%
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%
$315,120
$315.1K
Cap Rate 7%
$225,086
$225.1K
Cap Rate 9%
$175,067
$175.1K
Market Conditions
NOI Build-Up for 1,220 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
$25.6K $21.00/SF
− Vacancy
−$4.6K −$3.78/SF
EGI
$21.0K $17.22/SF
− OpEx
−$5.3K −$4.31/SF
NOI
$15.8K $12.92/SF
Area
Racine County, WI
Vacancy
18.00%
Lease Rate
$21.00 /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%
$315,120
Cap Rate 7%
$225,086
Cap Rate 9%
$175,067
Alternative Uses
Best Use
Office B
$225.1K
$197.0K – $262.6K
NOI $15,756 @ 7.0% cap · market cap 4.50%
Second Best
Healthcare Medical
$214.7K
$187.9K – $250.5K
NOI $15,032 @ 7.0% cap · market cap 4.30%
Theoretical Best
Office A
$293.4K
$256.7K – $342.3K
NOI $20,537 @ 7.0% cap · market cap 5.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
294
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53404, WI
15,532
Population
5,110
Households
3
Avg Household Size
32
Median Age
13%
College-Educated
82%
High-School Grad
4.9 sq mi
ZIP Area
3,170
Density / Sq Mi
$47,714
Median Household Income
$35,419
Median Earnings
$968
Median Rent
$126,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Flexible professional layout with treatment rooms, client reception, private parking, and additional storage.
Where is this medical office space located?
The property is located at 3005 Rapids Dr Racine, WI.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: 1,220 SF medical office property; Extensive renovations completed since 2021; Three treatment rooms, each with its own sink
