Office/Retail Building with
For Sale
$660,000
3863 Clover, Madison, WI 53714
Freestanding main building with tall exposed ceilings plus an attached 2021 garage, zoned CC-T for flexible use.
Property Size2,485 SF
Price / SF$265.59
Days on Market59
Property Features for 3863 Clover
General Information
Standard status
Active
Size
2,485 SF
Property subtype
Commercial
Zoning
CC-T
Building Details
Year Built
2021
Year Renovated
2021
Listing Agency:
Plato Commercial Real Estate, LLC
Listed By:
Kent Yan · License #52374090
(608) 698-6833
Source:
Madisonareahomelistings
Added: Jul 13
Changed: Sep 8
Last Checked: Aug 25 at 7:06AM
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 Plato Commercial Real Estate, LLC
Investment Insights
Based on property information with market context.
This for-sale office/retail building includes a main structure with tall, exposed ceilings and updated interior finishes. The main building was built in 1962 and updated in 2021. A separate garage building, constructed in 2021, provides additional enclosed space on the property.
Zoned CC-T, the property supports a range of commercial uses. It’s described as located on the near east side of Madison, off Cottage Grove Rd., near Lake Monona.
With the combination of the updated main building and newer garage, the site can suit occupancies seeking both street-facing commercial space and practical back-of-house or storage needs under the CC-T zoning designation.
Zoned CC-T, the property supports a range of commercial uses. It’s described as located on the near east side of Madison, off Cottage Grove Rd., near Lake Monona.
With the combination of the updated main building and newer garage, the site can suit occupancies seeking both street-facing commercial space and practical back-of-house or storage needs under the CC-T zoning designation.
Key Highlights
- Freestanding office/retail building with attached 2021 garage on the near east side of Madison off Cottage Grove Rd.
- Main building: 1,525 SF; garage building: 960 SF (per City of Madison Assessor’s Office).
- Zoned CC‑T for flexible use.
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
$41,921
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
6.35%
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%
$838,420
$838.4K
Cap Rate 7%
$598,871
$598.9K
Cap Rate 9%
$465,789
$465.8K
Market Conditions
NOI Build-Up for 2,485 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
$65.6K $26.40/SF
− Vacancy
−$9.7K −$3.91/SF
EGI
$55.9K $22.49/SF
− OpEx
−$14.0K −$5.62/SF
NOI
$41.9K $16.87/SF
Area
Madison, WI
Vacancy
14.80%
Lease Rate
$26.40 /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%
$838,420
Cap Rate 7%
$598,871
Cap Rate 9%
$465,789
Alternative Uses
Best Use
Office B
$598.9K
$524.0K – $698.7K
NOI $41,921 @ 7.0% cap · market cap 6.35%
Second Best
Retail
$507.8K
$444.3K – $592.4K
NOI $35,544 @ 7.0% cap · market cap 5.39%
Theoretical Best
Office A
$725.9K
$635.2K – $846.9K
NOI $50,813 @ 7.0% cap · market cap 7.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
253
Businesses Nearby
Explore this area
Business Placement
Demographics for 53714, WI
16,289
Population
7,975
Households
2
Avg Household Size
40
Median Age
40%
College-Educated
95%
High-School Grad
4.6 sq mi
ZIP Area
3,541
Density / Sq Mi
$69,862
Median Household Income
$41,738
Median Earnings
$1,220
Median Rent
$275,000
Median Home Value
Market
Vacancy Rate% for Office in Madison, WI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Freestanding main building with tall exposed ceilings plus an attached 2021 garage, zoned CC-T for flexible use.
Where is this office building located?
The property is located at 3863 Clover Madison, WI.
What is the asking price?
The asking price for this property is $660,000.
What are key features of this property?
This property features: Freestanding office/retail building with attached 2021 garage on the near east side of Madison off Cottage Grove Rd.; Main building: 1,525 SF; garage building: 960 SF (per City of Madison Assessor’s Office).; Zoned CC‑T for flexible use.
