Building Details

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Listing Agency: Follmer Commercial Real Estate

Listed By: Greg Follmer · License #MN 27078 Show Phone

Source: Crexi

Added: Nov 10, 2023 Changed: Sep 3 Last Checked: Sep 13 at 5:38AM

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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 Follmer Commercial Real Estate

Investment Insights

Based on property information with market context.

This 5,000 SF steel frame shop/warehouse is situated on 2.5 acres directly adjacent to Hwy 53, just outside the city limits and above the weight station. The finished building features in-floor heat, a truck lift, and an insulated and finished interior. It includes some offices, a break room, and a fenced area. There are three drive-in doors, two measuring 12 feet and one measuring 9 feet. The property also features a 10,000 LB truck lift. The 2022 taxes were $1,099.06.

Key Highlights

• Steel frame shop/warehouse with 5,000 SF on 2.5 acres.
• Located directly adjacent to Hwy 53, outside city limits.
• Features in‑floor heat and insulated, finished interior.

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

$24,265

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

4.90%

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%

$485,300 $485.3K

Cap Rate 7%

$346,643 $346.6K

Cap Rate 9%

$269,611 $269.6K

Market Conditions

NOI Build-Up for 5,000 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

$29.4K $5.88/SF

− Vacancy

−$853 −$0.17/SF

EGI

$28.5K $5.71/SF

− OpEx

−$4.3K −$0.86/SF

NOI

$24.3K $4.85/SF

Area

Douglas County, WI

Vacancy

2.90%

Lease Rate

$5.88 /SF/Yr

Expense Ratio

15.00%

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%

$485,300

Cap Rate 7%

$346,643

Cap Rate 9%

$269,611

Alternative Uses

Best Use

Retail

$876.6K

$767.0K – $1.02M (±1% cap)

NOI $61,362 @ 7.0% cap · market cap 12.40%

Second Best

Warehouse

$346.6K

$303.3K – $404.4K (±1% cap)

NOI $24,265 @ 7.0% cap · market cap 4.90%

Theoretical Best

Specialty Retail

$1.58M

$1.38M – $1.84M (±1% cap)

NOI $110,352 @ 7.0% cap · market cap 22.29%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Auto shops

Suggested Use

Top Pick Auto Repair Shop Plumbing Service Hotel & Motel Bar & Pub

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

3

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 54874, WI

3,568

Population

1,660

Households

2.1

Avg Household Size

44

Median Age

24%

College-Educated

96%

High-School Grad

144.7 sq mi

ZIP Area

25

Density / Sq Mi

$83,350

Median Household Income

$45,431

Median Earnings

$966

Median Rent

$206,500

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this warehouses located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Warehouse - 5,000 SF shop/warehouse on 2.5 acres near Hwy 53.

Where is this warehouse located?

The property is located at 3302 Humane Society Rd South Range, WI.

What is the asking price?

The asking price for this property is $495,000.

What are key features of this property?

This property features: Steel frame shop/warehouse with **5,000 SF on 2.5 acres.**; Located directly adjacent to Hwy 53, outside city limits.; Features in‑floor heat and insulated, finished interior.