Madison Flex Space with HC
For Sale
$1,200,000
6626 Watts Rd, Madison, WI 53719
High-traffic location with flexible zoning and permitted uses
Property Size5,880 SF
Lot Size0.69 Acres
Price / SF$204.08
Days on Market183
Property Features for 6626 Watts Rd
General Information
Standard status
Active
Property type
Flex space, Other retail properties, Office Units, Industrial properties, Retail properties & Spaces, Office Spaces
Size
5,880 SF
Class
B
Total Parking Spaces
18
Elevators
No
Lot size
0.69 Acres
Occupancy
72%
Sale Condition
Shell Condition
Investment Type
Owner User
Net Operating Income
$28,540
Building Details
Year Built
1984
Buildings
2
Stories
1
Units
2
Listing Agency:
Abstract Commercial Real Estate
Listed By:
Heather Ewing · License #5763590
(608) 239-4781
Added: Mar 9
Changed: Jun 16
Investment Insights
Based on property information with market context.
Located on Watts Rd in Madison, WI, this property offers an owner-user opportunity in a high-traffic location. The property features Heavy Commercial (HC) zoning, permitting a wide range of uses, including contractor shops, indoor storage, offices, vehicle service, and daycare facilities. The existing 5,880 square foot buildings and yard are suitable for fleet parking and warehousing, making it ideal for an HVAC or electrical contractor. A logistics firm could capitalize on the easy access to the Beltline/Highway and potentially redevelop the site up to 50 feet in height for expanded operations. The parking lot has been newly surfaced and striped. Both buildings are separately metered. The turnover condition is flexible, with notice, depending on the buyer's needs. The lot size is 0.69 acres.
Key Highlights
- Newly surfaced and striped parking lot. Both buildings are separately metered.
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
$99,193
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
8.27%
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%
$1,983,860
$2.0M
Cap Rate 7%
$1,417,043
$1.4M
Cap Rate 9%
$1,102,144
$1.1M
Market Conditions
NOI Build-Up for 5,880 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
$155.2K $26.40/SF
− Vacancy
−$23.0K −$3.91/SF
EGI
$132.3K $22.49/SF
− OpEx
−$33.1K −$5.62/SF
NOI
$99.2K $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%
$1,983,860
Cap Rate 7%
$1,417,043
Cap Rate 9%
$1,102,144
Alternative Uses
Best Use
Office B
$1.42M
$1.24M – $1.65M
NOI $99,193 @ 7.0% cap · market cap 8.27%
Second Best
Retail
$1.20M
$1.05M – $1.40M
NOI $84,105 @ 7.0% cap · market cap 7.01%
Theoretical Best
Office A
$1.72M
$1.50M – $2.00M
NOI $120,234 @ 7.0% cap · market cap 10.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,558
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53719, WI
32,151
Population
16,160
Households
2
Avg Household Size
35
Median Age
61%
College-Educated
96%
High-School Grad
10.2 sq mi
ZIP Area
3,152
Density / Sq Mi
$92,223
Median Household Income
$59,334
Median Earnings
$1,429
Median Rent
$349,300
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?
Flex space - High-traffic location with flexible zoning and permitted uses
Where is this flex space located?
The property is located at 6626 Watts Rd Madison, WI.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Newly surfaced and striped parking lot. Both buildings are separately metered.
