Former Medical Office on
For Sale
$349,000
1004 West Caro Rd, Caro, MI 48723
FORMER MEDICAL OFFICE FOR SALE
Property Size1,250 SF
Lot Size1.13 Acres
Price / SF$279.20
Days on Market277
Property Features for 1004 West Caro Rd
General Information
Standard status
Active
Property type
Medical space, Other office properties, Office buildings, Healthcare properties, Office Spaces
Size
1,250 SF
Class
A
Total Parking Spaces
15
Lot size
1.13 Acres
Building Details
Buildings
1
Stories
1
Units
1
Listing Agency:
(989) 551-6600
Listed By:
Evan
(989) 551-6600
Added: Nov 17, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This property, located on a high-visibility corner lot on M-81, offers exceptional exposure for businesses seeking consistent traffic in Caro. Situated on a heavily traveled section of M-81, the site benefits from its location within a thriving commercial corridor, surrounded by national and regional franchises. The corner placement provides excellent ingress and egress, wide sightlines, and signage opportunities, making it suitable for retail, service, restaurant, or redevelopment use. The property is a former medical office. With daily traffic counts supporting high-volume operations and neighboring businesses driving customer flow, this location is a premier commercial spot in the Caro market. The 1.13-acre lot contains a 1,250-square-foot building. This property on M-81 offers the visibility, accessibility, and commercial momentum needed for success.
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
$15,059
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
4.31%
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%
$301,180
$301.2K
Cap Rate 7%
$215,129
$215.1K
Cap Rate 9%
$167,322
$167.3K
Market Conditions
NOI Build-Up for 1,250 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
$26.7K $21.36/SF
− Vacancy
−$1.6K −$1.28/SF
EGI
$25.1K $20.08/SF
− OpEx
−$10.0K −$8.03/SF
NOI
$15.1K $12.05/SF
Area
Tuscola County, MI
Vacancy
6.00%
Lease Rate
$21.36 /SF/Yr
Expense Ratio
40.00%
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%
$301,180
Cap Rate 7%
$215,129
Cap Rate 9%
$167,322
Alternative Uses
Best Use
Healthcare Medical
$215.1K
$188.2K – $251.0K
NOI $15,059 @ 7.0% cap · market cap 4.31%
Second Best
Office B
$178.2K
$156.0K – $207.9K
NOI $12,476 @ 7.0% cap · market cap 3.57%
Theoretical Best
Multifamily LT 5
$906.5K
$793.2K – $1.06M
NOI $63,454 @ 7.0% cap · market cap 18.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
248
Businesses Nearby
Explore this area
Business Placement
Demographics for 48723, MI
11,953
Population
5,175
Households
2.3
Avg Household Size
45
Median Age
18%
College-Educated
91%
High-School Grad
131.8 sq mi
ZIP Area
91
Density / Sq Mi
$56,618
Median Household Income
$40,543
Median Earnings
$737
Median Rent
$131,300
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?
Medical space - FORMER MEDICAL OFFICE FOR SALE
Where is this medical space located?
The property is located at 1004 West Caro Rd Caro, MI.
What is the asking price?
The asking price for this property is $349,000.
