Retail Space with Pylon
For Sale
$1,250,000
640 S Madison Avenue, Greenwood, IN 46142
Commercial Sale, Greenwood, IN
Property Size7,506 SF
Lot Size0.95 Acres
Price / SF$166.53
Days on Market93
Property Features for 640 S Madison Avenue
General Information
Property type
Residential
Property subtype
Retail
Zoning
Commercial Medium
Parking features
Guest
Middle school
Greenwood Middle School
High school
Greenwood Community High Sch
Elementary school district
Greenwood Community Sch Corp
Middle school district
Greenwood Community Sch Corp
High school district
Greenwood Community Sch Corp
Directions
GPS Friendly
Subdivision
4102 - Johnson - Pleasant
Standard status
Active
APN
410232043047004026
Lot size
0.95 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Pt Se 1/4 S32 T14 R4 Tract 2
Legal Description
Pt Se 1/4 S32 T14 R4 Tract 2
Amenities
lit pylon signage
Building Details
Roof type
Metal
Listing Agency:
CENTURY 21 Scheetz · Century 21 Real Estate
(317) 881-2100
Listed By:
Mark Linder · License #RB14044403
(317) 844-5111
Added: May 21
Changed: Aug 19
Last Checked: Aug 21 at 3:06PM
MLS# 22103017
Copyright © 2026 MIBOR Service Corporation. 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.
Retail space totaling 7,506 sq ft in downtown Greenwood, consisting of a 6,000 sq ft main building and a 1,500 sq ft freestanding secondary building. Both buildings are currently leased through at least October 2027, with part of the main building leased through November 2030. The property features metal roofing and guest parking.
The site offers street visibility with lit pylon signage visible from heavily traveled US 31, positioned among existing shops, restaurants, and gas stations. It is also surrounded by “The Madison,” a luxury mixed-use live/work/play development that includes 18,700 sq ft of retail space and over 400 luxury condominiums, townhomes, and apartments, as well as the new Greenwood Fieldhouse.
Zoned Commercial Medium, the property sits on a 0.948-acre lot at 640 S Madison Avenue, Greenwood, IN 46142.
The site offers street visibility with lit pylon signage visible from heavily traveled US 31, positioned among existing shops, restaurants, and gas stations. It is also surrounded by “The Madison,” a luxury mixed-use live/work/play development that includes 18,700 sq ft of retail space and over 400 luxury condominiums, townhomes, and apartments, as well as the new Greenwood Fieldhouse.
Zoned Commercial Medium, the property sits on a 0.948-acre lot at 640 S Madison Avenue, Greenwood, IN 46142.
Key Highlights
- 7,506 sq ft retail/office property with two buildings
- Main building 6,000 sq ft plus 1,500 sq ft secondary building
- Leased through at least October 2027; part of building 1 through Nov. 2030
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
$94,744
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
7.58%
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%
$1,894,880
$1.9M
Cap Rate 7%
$1,353,486
$1.4M
Cap Rate 9%
$1,052,711
$1.1M
Market Conditions
NOI Build-Up for 7,506 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
$148.6K $19.80/SF
− Vacancy
−$22.3K −$2.97/SF
EGI
$126.3K $16.83/SF
− OpEx
−$31.6K −$4.21/SF
NOI
$94.7K $12.62/SF
Area
Johnson County, IN
Vacancy
15.00%
Lease Rate
$19.80 /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%
$1,894,880
Cap Rate 7%
$1,353,486
Cap Rate 9%
$1,052,711
Alternative Uses
Best Use
Office B
$1.35M
$1.18M – $1.58M
NOI $94,744 @ 7.0% cap · market cap 7.58%
Second Best
Retail
$1.17M
$1.03M – $1.37M
NOI $82,092 @ 7.0% cap · market cap 6.57%
Theoretical Best
Office A
$1.89M
$1.66M – $2.21M
NOI $132,406 @ 7.0% cap · market cap 10.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
961
Businesses Nearby
Explore this area
Business Placement
Demographics for 46142, IN
32,052
Population
14,396
Households
2.2
Avg Household Size
40
Median Age
39%
College-Educated
94%
High-School Grad
14.9 sq mi
ZIP Area
2,151
Density / Sq Mi
$85,611
Median Household Income
$47,831
Median Earnings
$1,122
Median Rent
$266,000
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?
Retail space - Two-building retail/office property with lit pylon signage, leased through at least October 2027 and part through November 2030.
Where is this retail space located?
The property is located at 640 S Madison Avenue Greenwood, IN.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 7,506 sq ft retail/office property with two buildings; Main building 6,000 sq ft plus 1,500 sq ft secondary building; Leased through at least October 2027; part of building 1 through Nov. 2030
