Building Details

Year built 1977

Listing Agency: Century 21 Signature Realty · Century 21 Real Estate j***@c21signaturerealty.com Show Phone

Listed By: Zachary Florida Show Phone

Added: Nov 18, 2025 Changed: Aug 19 Last Checked: Aug 21 at 2:06PM

Report an Issue

MLS# 50194579

Copyright © 2026 Multiple Listing Service MiRealSource. 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 5,040-square-foot retail building was constructed in 1977 and is configured for hardware and auto parts use. The building is described as bright, clean, and fully operational, with a layout that can support the existing retail format or be adapted for another commercial purpose. The offering includes the real estate only; the business is separate.

The property encompasses 1.1 acres at 7200 E M-71 Highway in Vernon, Michigan, providing land beyond the building footprint. Private water serves the site. The existing improvements and land area provide a foundation for continued retail use or a reconfigured commercial operation, subject to applicable requirements.

Key Highlights

• 5,040‑square‑foot retail building
• 1.1‑acre property at 7200 E M‑71 Highway
• Configured for hardware and auto parts retail use

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

$30,577

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

7.19%

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%

$611,540 $611.5K

Cap Rate 7%

$436,814 $436.8K

Cap Rate 9%

$339,744 $339.7K

Market Conditions

NOI Build-Up for 5,040 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

$45.4K $9.00/SF

− Vacancy

−$1.7K −$0.33/SF

EGI

$43.7K $8.67/SF

− OpEx

−$13.1K −$2.60/SF

NOI

$30.6K $6.07/SF

Area

Shiawassee County, MI

Vacancy

3.70%

Lease Rate

$9.00 /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%

$611,540

Cap Rate 7%

$436,814

Cap Rate 9%

$339,744

Alternative Uses

Best Use

Retail

$747.4K

$654.0K – $872.0K (±1% cap)

NOI $52,320 @ 7.0% cap · market cap 12.31%

Second Best

Industrial

$436.8K

$382.2K – $509.6K (±1% cap)

NOI $30,577 @ 7.0% cap · market cap 7.19%

Theoretical Best

Office A

$960.9K

$840.8K – $1.12M (±1% cap)

NOI $67,262 @ 7.0% cap · market cap 15.83%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Location Intelligence

Trade Area within ½ mile

58

Businesses Nearby

2k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Chase Bank Shops & Services

2,139 visits/mo 0.4 miles

Demographics for 48476, MI

706

Population

267

Households

2.6

Avg Household Size

42

Median Age

12%

College-Educated

92%

High-School Grad

0.7 sq mi

ZIP Area

1,009

Density / Sq Mi

$67,857

Median Household Income

$38,083

Median Earnings

$1,063

Median Rent

$122,200

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this retail space located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Similar For Sale Nearby

Turn-Key Hardware/Auto Parts Retail

7200 E M 71, Vernon, MI 48476

$425,000

5,040 SF

View details

Pole Barn Auto Repair Building

7320 E M 71, Vernon, MI 48476

$449,900

View details

Turn-Key Hardware/Auto Parts Store

7200 E M-71 Hwy, Vernon, MI 48476

$425,000

1.70 Acres

View details

Frequently Asked Questions

What type of property is this?

Retail space - Established hardware and auto parts configuration with additional land for future property adaptation.

Where is this retail space located?

The property is located at 7200 E M-71 Highway Vernon, MI.

What is the asking price?

The asking price for this property is $425,000.

What are key features of this property?

This property features: 5,040‑square‑foot retail building; 1.1‑acre property at 7200 E M‑71 Highway; Configured for hardware and auto parts retail use