Historic Office Building with 14
For Sale
$1,600,000
401 Wisconsin Avenue, Madison, WI 53703
COMMERCIAL - Madison, WI
Property Size6,006 SF
Lot Size0.07 Acres
Price / SF$266.40
Days on Market42
Property Features for 401 Wisconsin Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
DR1,HISMH
Interior features
Private Restrooms, Reception area, Inside storage, Private office(s)
Lot features
Corner, Near public transportatn, Residential area
Directions
Corner of E Gorham ad Wisconsin Ave
Subdivision
MADISON - C W01
Standard status
Active
APN
0709-144-0712-1
Size
6,006 SF
Lot size
0.07 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
9555
Building Details
Year built
1910
Roof type
Composition
Additional Structures
Storage
Listing Agency:
Sprinkman Real Estate
(608) 467-9596
Listed By:
Chas Martin · License #57744-90
(608) 334-9042
Added: Jun 30
Changed: Aug 10
Last Checked: Aug 10 at 4:06PM
MLS# 2013475
Copyright © 2026 REALTORS® Association of South Central Wisconsin. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 6,006-square-foot office building dates to 1910 and includes 14 offices, a reception area, private restrooms, inside storage, and additional private office space. The exterior features a classic brick facade, while the basement contains a remodeled lounge/apartment area with a full kitchen and bath. A composition roof serves the property.
The building is located in downtown Madison near Lake Mendota and Capitol Square. It is currently occupied by a longtime tenant with a current lease. The property information identifies zoning as DR1,HISMH; the buyer is responsible for confirming zoning and building requirements.
The building is located in downtown Madison near Lake Mendota and Capitol Square. It is currently occupied by a longtime tenant with a current lease. The property information identifies zoning as DR1,HISMH; the buyer is responsible for confirming zoning and building requirements.
Key Highlights
- 6,006‑square‑foot office building on 0.07 acres
- 14 offices with reception area and private restrooms
- 1910 construction with a classic brick facade
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
$101,319
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
6.33%
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%
$2,026,380
$2.0M
Cap Rate 7%
$1,447,414
$1.4M
Cap Rate 9%
$1,125,767
$1.1M
Market Conditions
NOI Build-Up for 6,006 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
$158.6K $26.40/SF
− Vacancy
−$23.5K −$3.91/SF
EGI
$135.1K $22.49/SF
− OpEx
−$33.8K −$5.62/SF
NOI
$101.3K $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%
$2,026,380
Cap Rate 7%
$1,447,414
Cap Rate 9%
$1,125,767
Alternative Uses
Best Use
Office B
$1.45M
$1.27M – $1.69M
NOI $101,319 @ 7.0% cap · market cap 6.33%
Second Best
Mixed Use
$1.18M
$1.04M – $1.38M
NOI $82,883 @ 7.0% cap · market cap 5.18%
Theoretical Best
Office A
$1.75M
$1.54M – $2.05M
NOI $122,811 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,097
Businesses Nearby
Explore this area
Business Placement
Demographics for 53703, WI
38,512
Population
21,025
Households
1.8
Avg Household Size
27
Median Age
69%
College-Educated
98%
High-School Grad
1.8 sq mi
ZIP Area
21,396
Density / Sq Mi
$46,618
Median Household Income
$27,923
Median Earnings
$1,445
Median Rent
$472,000
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 - Brick facade, reception space, private restrooms, storage, and a remodeled lower-level lounge area complement the office layout.
Where is this office building located?
The property is located at 401 Wisconsin Avenue Madison, WI.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 6,006‑square‑foot office building on 0.07 acres; 14 offices with reception area and private restrooms; 1910 construction with a classic brick facade
