Listing Agency: REISS REAL ESTATE INC. Show Phone

Listed By: ALAN REISS · License #6502123263 Show Phone

Added: Sep 16, 2025 Changed: Sep 3 Last Checked: Sep 15 at 10:06PM

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MLS# 50189147

Copyright © 2026 Clare Gladwin Board of REALTORS. 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 flex property combines a 2,774-square-foot office and business center with 3,776+ square feet of bay garage space. An additional bay includes a hoist, and the site also features a lean-to shed. Forced-air heating and private water service are in place, while high-speed fiber optic service is available.

The property occupies 2.97 acres at 2655 W Ludington Drive in Farwell, with access to major roads. Immediate possession is available. The property is currently tax exempt; prospective users should confirm permitted uses with the Surrey Township Zoning Administrator. Showings are available by advance appointment.

Key Highlights

• 2.97‑acre flex property in Farwell, MI
• 2,774 sq ft of office and business center space
• 3,776+ sq ft of bay garage area

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

$32,178

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

8.05%

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%

$643,560 $643.6K

Cap Rate 7%

$459,686 $459.7K

Cap Rate 9%

$357,533 $357.5K

Market Conditions

NOI Build-Up for 6,616 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

$48.4K $7.32/SF

− Vacancy

−$2.5K −$0.37/SF

EGI

$46.0K $6.95/SF

− OpEx

−$13.8K −$2.08/SF

NOI

$32.2K $4.86/SF

Area

Detroit, MI

Vacancy

5.08%

Lease Rate

$7.32 /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%

$643,560

Cap Rate 7%

$459,686

Cap Rate 9%

$357,533

Alternative Uses

Best Use

Office B

$957.5K

$837.8K – $1.12M (±1% cap)

NOI $67,026 @ 7.0% cap · market cap 16.76%

Second Best

Flex RnD

$678.2K

$593.5K – $791.3K (±1% cap)

NOI $47,476 @ 7.0% cap · market cap 11.87%

Theoretical Best

Office A

$1.46M

$1.28M – $1.70M (±1% cap)

NOI $102,166 @ 7.0% cap · market cap 25.55%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Real Estate Agency Dental Office Restaurant Parking Lot & Garage Spa & Massage Center Hair Salon

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

48

Businesses Nearby

Explore this area Business Placement

Demographics for 48622, MI

6,364

Population

3,213

Households

2

Avg Household Size

47

Median Age

18%

College-Educated

93%

High-School Grad

86.1 sq mi

ZIP Area

74

Density / Sq Mi

$57,500

Median Household Income

$36,019

Median Earnings

$754

Median Rent

$123,600

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space 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?

Flex space - Combined office and garage improvements offer a flexible commercial layout with private water service and forced-air heating.

Where is this flex space located?

The property is located at 2655 W Ludington Drive Farwell, MI.

What is the asking price?

The asking price for this property is $399,900.

What are key features of this property?

This property features: 2.97‑acre flex property in Farwell, MI; 2,774 sq ft of office and business center space; 3,776+ sq ft of bay garage area