Strip Center with Seven
For Sale
$949,000
1381 S Drake Road, Kalamazoo, MI 49006
COMMERCIAL - Kalamazoo, MI
Property Size7,735 SF
Lot Size0.62 Acres
Price / SF$122.69
Days on Market566
Property Features for 1381 S Drake Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
CC
Bathrooms
5
Full bathrooms
5
Rooms
Bathroom 2, Bathroom 3, Bathroom 1, Bathroom 4, Bathroom 5
Elementary school district
Kalamazoo
Middle school district
Kalamazoo
High school district
Kalamazoo
Directions
US 131 to Stadium Dr. (E) to Drake (N) to property.
Subdivision
Greater Kalamazoo - K
Standard status
Active
APN
0619365001
Size
7,735 SF
Lot size
0.62 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
See Attached Schedule C
Tax Annual Amount
17225
Legal Description
See Attached Schedule C
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1985
Floors in Building
1
Number of units
7
Building materials
Vinyl Siding
Listing Agency:
Berner Real Estate
(269) 327-0993
Listed By:
Rick Berner
(269) 217-6568
Added: Feb 1, 2025
Changed: Aug 4
Last Checked: Aug 21 at 5:06AM
MLS# 25003841
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 strip center/mall includes seven total units, with three currently rented. Two additional units of approximately 1,900 square feet each are vacant, offering space for new retail or service users. Current occupancy includes Hungry Howes as a long-term tenant, along with two other occupants: a barber and a photographer.
The property is positioned on a high-visibility retail/service corridor with strong traffic and stop lights. It is located near Costco, Walters Auto, and the Western University campus, and sits north of Stadium Dr.
Overall, the center’s mix of existing tenants and available units supports a straightforward leasing plan for prospective businesses or investors seeking in-place income alongside additional lease-up.
The property is positioned on a high-visibility retail/service corridor with strong traffic and stop lights. It is located near Costco, Walters Auto, and the Western University campus, and sits north of Stadium Dr.
Overall, the center’s mix of existing tenants and available units supports a straightforward leasing plan for prospective businesses or investors seeking in-place income alongside additional lease-up.
Key Highlights
- Strip center/mall with 7 units and 3 currently rented
- Two 2,000+ SF units vacant; approx. 1,900 SF each and ready for new tenants
- Long‑term tenant Hungry Howes plus barber and photographer occupants
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
$53,344
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
5.62%
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%
$1,066,880
$1.1M
Cap Rate 7%
$762,057
$762.1K
Cap Rate 9%
$592,711
$592.7K
Market Conditions
NOI Build-Up for 7,735 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
$92.8K $12.00/SF
− Vacancy
−$16.6K −$2.15/SF
EGI
$76.2K $9.85/SF
− OpEx
−$22.9K −$2.96/SF
NOI
$53.3K $6.90/SF
Area
Kalamazoo County, MI
Vacancy
17.90%
Lease Rate
$12.00 /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%
$1,066,880
Cap Rate 7%
$762,057
Cap Rate 9%
$592,711
Alternative Uses
Best Use
Retail
$762.1K
$666.8K – $889.1K
NOI $53,344 @ 7.0% cap · market cap 5.62%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$2.02M
$1.77M – $2.36M
NOI $141,686 @ 7.0% cap · market cap 14.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
42.9%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
402
Businesses Nearby
473k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 27%
Dining 26%
Superstores 25%
Groceries 10%
Costco Wholesale
Superstores
119,173 visits/mo
0.3 miles
Costco Gasoline
Shops & Services
61,668 visits/mo
0.4 miles
Trader Joe's
Groceries
46,082 visits/mo
0.4 miles
McDonald's
Dining
25,002 visits/mo
0.4 miles
Speedway
Shops & Services
24,068 visits/mo
0.1 miles
Demographics for 49006, MI
25,119
Population
12,093
Households
2.1
Avg Household Size
27
Median Age
44%
College-Educated
91%
High-School Grad
6.0 sq mi
ZIP Area
4,187
Density / Sq Mi
$45,617
Median Household Income
$18,710
Median Earnings
$991
Median Rent
$198,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Strip mall - For-sale strip center with seven retail/service units, with three currently rented.
Where is this strip mall located?
The property is located at 1381 S Drake Road Kalamazoo, MI.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: Strip center/mall with 7 units and 3 currently rented; Two 2,000+ SF units vacant; approx. 1,900 SF each and ready for new tenants; Long‑term tenant Hungry Howes plus barber and photographer occupants
