Brick Office Building with
For Sale
$300,000
3716 Durand Ave, Racine, WI 53405
Updated commercial property includes a full lower level and an asphalt driveway with additional parking.
Property Size1,925 SF
Price / SF$155.84
Days on Market42
Property Features for 3716 Durand Ave
General Information
Standard status
Active
Size
1,925 SF
Property subtype
Commercial
Building Details
Year Built
1950
Listing Agency:
Berkshire Hathaway HomeServices Metro Realty-Racine
(262) 497-4114
Listed By:
Alicia Villa
Source:
Viewhomesinwisconsin
Added: Jul 21
Changed: Aug 29
Last Checked: Aug 30 at 6:09PM
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 Berkshire Hathaway HomeServices Metro Realty-Racine
Investment Insights
Based on property information with market context.
Located at 3716 Durand Ave in Racine, Wisconsin, this 1,925-square-foot brick office building was constructed in 1950. The property includes a full basement with tall ceilings, offering additional interior area for storage or workspace. It was previously occupied by an insurance agency.
Recent property work includes a rubber roof upgrade, a new drain tile system, selected electrical improvements, interior painting, and flooring updates. The site also has an asphalt driveway and an additional parking space, providing practical improvements for office operations.
Recent property work includes a rubber roof upgrade, a new drain tile system, selected electrical improvements, interior painting, and flooring updates. The site also has an asphalt driveway and an additional parking space, providing practical improvements for office operations.
Key Highlights
- 1,925 sq. ft. brick office building constructed in 1950
- Full basement with tall ceilings
- Previously occupied by an insurance agency
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
$24,861
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
8.29%
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%
$497,220
$497.2K
Cap Rate 7%
$355,157
$355.2K
Cap Rate 9%
$276,233
$276.2K
Market Conditions
NOI Build-Up for 1,925 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
$40.4K $21.00/SF
− Vacancy
−$7.3K −$3.78/SF
EGI
$33.1K $17.22/SF
− OpEx
−$8.3K −$4.31/SF
NOI
$24.9K $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%
$497,220
Cap Rate 7%
$355,157
Cap Rate 9%
$276,233
Alternative Uses
Best Use
Office B
$355.2K
$310.8K – $414.4K
NOI $24,861 @ 7.0% cap · market cap 8.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$462.9K
$405.1K – $540.1K
NOI $32,405 @ 7.0% cap · market cap 10.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
494
Businesses Nearby
Explore this area
Business Placement
Demographics for 53405, WI
25,561
Population
11,509
Households
2.2
Avg Household Size
39
Median Age
26%
College-Educated
90%
High-School Grad
6.6 sq mi
ZIP Area
3,873
Density / Sq Mi
$68,339
Median Household Income
$40,162
Median Earnings
$946
Median Rent
$173,600
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 - Updated commercial property includes a full lower level and an asphalt driveway with additional parking.
Where is this office building located?
The property is located at 3716 Durand Ave Racine, WI.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: 1,925 sq. ft. brick office building constructed in 1950; Full basement with tall ceilings; Previously occupied by an insurance agency
