Highly Visible Two-Level Retail
For Sale
$1,295,000
421 S Park St, Madison, WI 53715
Two-level building with updated exterior, flexible layout, and prominent signage with dedicated on-site parking.
Property Size4,905 SF
Price / SF$264.02
Days on Market51
Property Features for 421 S Park St
General Information
Standard status
Active
Size
4,905 SF
Building Details
Year Built
1951
Stories
2
Listing Agency:
Key Commercial Real Estate, LLC
Listed By:
Mallory Rekoske · License #5687190
(608) 469-0384
Source:
Soldinmadison
Added: Jul 26
Changed: Sep 2
Last Checked: Sep 13 at 1:02PM
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 Key Commercial Real Estate, LLC
Investment Insights
Based on property information with market context.
421 S. Park St is a highly visible two-level commercial building with a recently updated exterior. The property offers a flexible floor plan sized at 4,905 SF, designed to support a variety of retail, office, medical, or service uses. Dedicated on-site parking and prominent signage further support tenant visibility and day-to-day operations.
The building is positioned along a major gateway into Downtown Madison, with access that supports convenient trips to and from the core of the city. The property’s placement on one of the area’s busiest corridors is intended to benefit storefront and service traffic.
As presented, the configuration provides multiple levels within one building, which can support different operating layouts while keeping the overall site cohesive for customer access and building identity.
The building is positioned along a major gateway into Downtown Madison, with access that supports convenient trips to and from the core of the city. The property’s placement on one of the area’s busiest corridors is intended to benefit storefront and service traffic.
As presented, the configuration provides multiple levels within one building, which can support different operating layouts while keeping the overall site cohesive for customer access and building identity.
Key Highlights
- 4,905 SF commercial building at 421 S. Park St with prominent signage along a busy downtown gateway corridor
- Two‑level, flexible floor plan suitable for retail, office, medical, or service users
- Dedicated on‑site parking available
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
$70,159
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
5.42%
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%
$1,403,180
$1.4M
Cap Rate 7%
$1,002,271
$1.0M
Cap Rate 9%
$779,544
$779.5K
Market Conditions
NOI Build-Up for 4,905 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
$105.9K $21.60/SF
− Vacancy
−$5.7K −$1.17/SF
EGI
$100.2K $20.43/SF
− OpEx
−$30.1K −$6.13/SF
NOI
$70.2K $14.30/SF
Area
Madison, WI
Vacancy
5.40%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$1,403,180
Cap Rate 7%
$1,002,271
Cap Rate 9%
$779,544
Alternative Uses
Best Use
Retail
$1.00M
$877.0K – $1.17M
NOI $70,159 @ 7.0% cap · market cap 5.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,297 @ 7.0% cap · market cap 7.74%
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
3,266
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 53715, WI
16,517
Population
5,640
Households
2.9
Avg Household Size
24
Median Age
66%
College-Educated
95%
High-School Grad
1.3 sq mi
ZIP Area
12,705
Density / Sq Mi
$37,598
Median Household Income
$8,819
Median Earnings
$1,533
Median Rent
$436,100
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 Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Storefront property - Two-level building with updated exterior, flexible layout, and prominent signage with dedicated on-site parking.
Where is this storefront property located?
The property is located at 421 S Park St Madison, WI.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: 4,905 SF commercial building at 421 S. Park St with prominent signage along a busy downtown gateway corridor; Two‑level, flexible floor plan suitable for retail, office, medical, or service users; Dedicated on‑site parking available
