Remodeled Downtown Office
For Sale
$450,000
107 W Michigan Avenue, Kalamazoo, MI 49007
COMMERCIAL - Kalamazoo, MI
Property Size1,658 SF
Lot Size0.12 Acres
Price / SF$271.41
Days on Market417
Property Features for 107 W Michigan Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
CCBD
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Elementary school district
Kalamazoo
Middle school district
Kalamazoo
High school district
Kalamazoo
Directions
Southwest corner of W. Michigan Avenue and S. Kalamazoo Mall in downtown Kalamazoo.
Subdivision
Greater Kalamazoo - K
Standard status
Active
APN
39000615381011
Size
1,658 SF
Lot size
0.12 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
KALAMAZOO COUNTY CONDOMINIUM SUBDIVISION PLAN 1 LIBER 883 PAGE 404 UNIT 9 THE KALAMAZOO BUILDING, A CONDOMINIUM PA 255
Tax Annual Amount
5600
Legal Description
KALAMAZOO COUNTY CONDOMINIUM SUBDIVISION PLAN 1 LIBER 883 PAGE 404 UNIT 9 THE KALAMAZOO BUILDING, A CONDOMINIUM PA 255
Utilities
Utilities
Cable Available
Heating system
Radiant, Forced Air
Cooling system
Central Air
Building Details
Year built
1907
Number of units
2
Building materials
Brick
Roof type
Rubber
Listing Agency:
Berkshire Hathaway HomeServices MI
(269) 629-7653
Listed By:
Bill Sikkema · License #6501305544
(269) 207-7270
Added: Jul 3, 2025
Changed: Aug 4
Last Checked: Aug 23 at 11:06PM
MLS# 25032884
Copyright © 2026 Michigan Regional Information Center, LLC. 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.
This completely remodeled office condominium is located on the 9th floor of the Kalamazoo Building and offers a sophisticated interior layout with soaring ceilings and an open floor plan. Two units have been combined to create approximately 1,658 square feet of space, including a brand-new kitchen, a newly updated bathroom, and new flooring, while preserving original woodwork. The unit also includes a private entrance and a wood-burning fireplace. A spiral staircase provides access to a private rooftop patio, and the patio may be expanded over the remaining roof deck.
The property sits at the corner of Michigan Avenue and the Kalamazoo Mall in Downtown Kalamazoo.
As presented, the space is configured as an office condominium with interior finishes updated throughout and exterior outdoor access via the private rooftop patio.
The property sits at the corner of Michigan Avenue and the Kalamazoo Mall in Downtown Kalamazoo.
As presented, the space is configured as an office condominium with interior finishes updated throughout and exterior outdoor access via the private rooftop patio.
Key Highlights
- Completely remodeled downtown office condo in the Kalamazoo Building at Michigan Avenue and Kalamazoo Mall
- 1,658 SF office condominium created by combining two units, with a private entrance
- Private rooftop patio accessible by a spiral staircase; potential to expand over remaining roof deck
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
$16,617
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
3.69%
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%
$332,340
$332.3K
Cap Rate 7%
$237,386
$237.4K
Cap Rate 9%
$184,633
$184.6K
Market Conditions
NOI Build-Up for 1,658 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
$23.9K $14.40/SF
− Vacancy
−$1.7K −$1.04/SF
EGI
$22.2K $13.36/SF
− OpEx
−$5.5K −$3.34/SF
NOI
$16.6K $10.02/SF
Area
Kalamazoo County, MI
Vacancy
7.20%
Lease Rate
$14.40 /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%
$332,340
Cap Rate 7%
$237,386
Cap Rate 9%
$184,633
Alternative Uses
Best Use
Office B
$237.4K
$207.7K – $277.0K
NOI $16,617 @ 7.0% cap · market cap 3.69%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$433.9K
$379.6K – $506.2K
NOI $30,371 @ 7.0% cap · market cap 6.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
3,165
Businesses Nearby
Explore this area
Business Placement
Demographics for 49007, MI
10,353
Population
5,102
Households
2
Avg Household Size
31
Median Age
24%
College-Educated
84%
High-School Grad
3.5 sq mi
ZIP Area
2,958
Density / Sq Mi
$39,309
Median Household Income
$24,723
Median Earnings
$1,017
Median Rent
$103,400
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?
Office units - Completely remodeled 9th-floor office condominium with private entrance, open floor plan, and rooftop patio access.
Where is this office units located?
The property is located at 107 W Michigan Avenue Kalamazoo, MI.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: Completely remodeled downtown office condo in the Kalamazoo Building at Michigan Avenue and Kalamazoo Mall; 1,658 SF office condominium created by combining two units, with a private entrance; Private rooftop patio accessible by a spiral staircase; potential to expand over remaining roof deck
