Industrial Property with Established
For Sale
$3,293,000
856 Armour Rd, Oconomowoc, WI 53066
Well-maintained industrial property with stable income and functional features.
Property Size46,000 SF
Lot Size2.27 Acres
Price / SF$71.59
Days on Market125
Property Features for 856 Armour Rd
General Information
Standard status
Active
Size
46,000 SF
Class
A
Lot size
2.27 Acres
Property subtype
industrial
Listing Agency:
Milwaukee
(414) 944-2200
Listed By:
James Young · License #49879-90
(414) 944-2105
Source:
Property.jll
Added: May 8
Changed: Sep 7
Last Checked: Sep 7 at 4:57AM
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 Milwaukee
Investment Insights
Based on property information with market context.
This well-maintained industrial property offers stable, in-place income with established tenants, including Omco Sumo and Lake Area Free Clinic. The 41,857 square foot building, situated on 2.273 acres, supports a variety of uses with functional features including overhead cranes. Recent capital improvements, including a newer roof and HVAC systems, reduce near-term expenses and enhance long-term reliability. The building's durable construction and tenant-friendly infrastructure contribute to consistent occupancy and operational stability. The property also offers easy access to major roadways, enhancing convenience for tenants and operations.
Key Highlights
- Stable, in‑place income with established tenants (Omco Sumo and Lake Area Free Clinic).
- Newer roof and HVAC systems reduce near‑term expenses.
- Functional features including overhead cranes support a variety of uses.
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
$167,503
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
5.09%
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%
$3,350,060
$3.4M
Cap Rate 7%
$2,392,900
$2.4M
Cap Rate 9%
$1,861,144
$1.9M
Market Conditions
NOI Build-Up for 46,000 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
$251.6K $5.47/SF
− Vacancy
−$12.3K −$0.27/SF
EGI
$239.3K $5.20/SF
− OpEx
−$71.8K −$1.56/SF
NOI
$167.5K $3.64/SF
Area
Waukesha County, WI
Vacancy
4.90%
Lease Rate
$5.47 /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%
$3,350,060
Cap Rate 7%
$2,392,900
Cap Rate 9%
$1,861,144
Alternative Uses
Best Use
Industrial
$2.39M
$2.09M – $2.79M
NOI $167,503 @ 7.0% cap · market cap 5.09%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$23.48M
$20.54M – $27.39M
NOI $1,643,394 @ 7.0% cap · market cap 49.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
590
Businesses Nearby
Explore this area
Business Placement
Demographics for 53066, WI
36,595
Population
16,074
Households
2.3
Avg Household Size
45
Median Age
47%
College-Educated
97%
High-School Grad
103.2 sq mi
ZIP Area
355
Density / Sq Mi
$111,348
Median Household Income
$55,563
Median Earnings
$1,263
Median Rent
$402,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Well-maintained industrial property with stable income and functional features.
Where is this industrial property located?
The property is located at 856 Armour Rd Oconomowoc, WI.
What is the asking price?
The asking price for this property is $3,293,000.
What are key features of this property?
This property features: Stable, in‑place income with established tenants (Omco Sumo and Lake Area Free Clinic).; Newer roof and HVAC systems reduce near‑term expenses.; Functional features including overhead cranes support a variety of uses.
