Yes, property can be partially exempt under the right circumstances. Property used in part for exempt purposes and in part for an unrelated trade or business for which the owner is subject to income tax under the Internal Revenue Code may be partially taxed on the portion that is attributable to the unrelated trade or business.
State statute section 70.1105 contains requirements for partial exemption. Besides the section 70.1105 requirements, owners seeking partial exemption must be aware of the leasing and rent restrictions in section 70.11's preamble. Wisconsin State Statute 70.11