Multi-Level Downtown Retail
For Sale
$2,250,000
223 S Kalamazoo Mall, Kalamazoo, MI 49007
COMMERCIAL - Kalamazoo, MI
Property Size13,872 SF
Lot Size0.27 Acres
Price / SF$162.20
Days on Market1032
Property Features for 223 S Kalamazoo Mall
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
CCBD
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1, Basement
Parking
22
Interior features
Broadband
Subdivision
Downtown Core
Elementary school district
Kalamazoo
Middle school district
Kalamazoo
High school district
Kalamazoo
Directions
Michigan Ave / S. Kalamazoo Mall (at Kalamazoo's Downtown Core) Next door to Urban Modern Hair and Milan Boutique and Condominiums.
Standard status
Active
APN
0615387214
Size
13,872 SF
Lot size
0.27 Acres
Taxes and HOA fees
Tax Year
2023
Tax Description
See Attached.
Tax Annual Amount
5536
Legal Description
See Attached.
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1878
Floors in Building
3
Number of units
4
Building materials
Block, Concrete, Stucco, Brick
Roof type
Composition
Listing Agency:
Berkshire Hathaway HomeServices MI
(269) 344-8599
Listed By:
Brian D Lewis · License #6591441776
(269) 488-5293
Added: Oct 16, 2023
Changed: Aug 4
Last Checked: Aug 12 at 7:06AM
MLS# 23138503
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 retail building offers a spacious multi-level layout with three stories plus a basement. The property size is approximately 13,872 square feet, and it sits on an approximately 0.27-acre lot.
Located at 223 S Kalamazoo Mall in Kalamazoo, Michigan, the building is described as being in downtown Kalamazoo, with nearby access to local cultural destinations such as the Farmers' Alley Theater. Parking is identified as ready-for-use, with 22 dedicated spaces available on-site.
The property is being offered for sale.
Located at 223 S Kalamazoo Mall in Kalamazoo, Michigan, the building is described as being in downtown Kalamazoo, with nearby access to local cultural destinations such as the Farmers' Alley Theater. Parking is identified as ready-for-use, with 22 dedicated spaces available on-site.
The property is being offered for sale.
Key Highlights
- Multi‑level building with three stories plus a basement
- 22 dedicated parking spots
- Year built: 1878
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
$95,667
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
4.25%
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%
$1,913,340
$1.9M
Cap Rate 7%
$1,366,671
$1.4M
Cap Rate 9%
$1,062,967
$1.1M
Market Conditions
NOI Build-Up for 13,872 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
$166.5K $12.00/SF
− Vacancy
−$29.8K −$2.15/SF
EGI
$136.7K $9.85/SF
− OpEx
−$41.0K −$2.96/SF
NOI
$95.7K $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%
$1,913,340
Cap Rate 7%
$1,366,671
Cap Rate 9%
$1,062,967
Alternative Uses
Best Use
Retail
$1.37M
$1.20M – $1.59M
NOI $95,667 @ 7.0% cap · market cap 4.25%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$3.63M
$3.18M – $4.24M
NOI $254,101 @ 7.0% cap · market cap 11.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,165
Businesses Nearby
62k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 44%
Shops & Services 41%
Hotels & Casinos 12%
Electronics 2%
McDonald's
Dining
15,871 visits/mo
0.3 miles
Shell
Shops & Services
13,648 visits/mo
0.4 miles
Checkers
Dining
6,149 visits/mo
0.5 miles
Barrio Tacos
Dining
4,643 visits/mo
0.1 miles
Family Dollar
Shops & Services
4,370 visits/mo
0.5 miles
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Three stories plus basement with 22 dedicated parking spaces near Kalamazoo’s Farmers' Alley Theater.
Where is this retail space located?
The property is located at 223 S Kalamazoo Mall Kalamazoo, MI.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Multi‑level building with three stories plus a basement; 22 dedicated parking spots; Year built: 1878
