Retail Building in Downtown
For Sale
$399,999
525 Kalamazoo, Kalamazoo, MI 49007
Freestanding retail building with Adult-Use license in prime location.
Property Size2,674 SF
Price / SF$149.59
Days on Market684
Property Features for 525 Kalamazoo
General Information
Standard status
Active
Size
2,674 SF
Property subtype
Industrial
Amenities
3
Commercial
irregular
Paved Road.
Building Details
Year Built
1919
Listing Agency:
C3 CRE, LLC
(248) 220-1110
Listed By:
Corbin Yaldoo · License #6502431997
(248) 752-1276
Source:
Xome
Added: Oct 7, 2024
Changed: Aug 12
Last Checked: Aug 21 at 5:05AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of C3 CRE, LLC
Investment Insights
Based on property information with market context.
This freestanding retail building, suitable for various retail users and investors, is available for sale. Previously operating as a provisioning center, it includes an Adult-Use license. The property is situated in a prime downtown Kalamazoo location, near three major colleges and universities. It features approximately 10 parking spaces, with additional municipal parking nearby, and one garage door at the rear. Located on East Kalamazoo Avenue, the site benefits from high traffic, with over 17,121 vehicles per day. The surrounding area has a dense residential population and a mix of national and local tenants, providing excellent exposure. The building has a size of 2674 square feet.
Key Highlights
- Prime downtown Kalamazoo location near three major colleges/universities.
- Includes an Adult‑Use license, making it a turnkey Provisioning Center.
- High traffic location on East Kalamazoo Avenue (17,121+ vehicles per day).
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
$18,441
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
4.61%
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%
$368,820
$368.8K
Cap Rate 7%
$263,443
$263.4K
Cap Rate 9%
$204,900
$204.9K
Market Conditions
NOI Build-Up for 2,674 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
$32.1K $12.00/SF
− Vacancy
−$5.7K −$2.15/SF
EGI
$26.3K $9.85/SF
− OpEx
−$7.9K −$2.96/SF
NOI
$18.4K $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%
$368,820
Cap Rate 7%
$263,443
Cap Rate 9%
$204,900
Alternative Uses
Best Use
Retail
$263.4K
$230.5K – $307.4K
NOI $18,441 @ 7.0% cap · market cap 4.61%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$699.7K
$612.3K – $816.4K
NOI $48,981 @ 7.0% cap · market cap 12.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,946
Businesses Nearby
42k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 75%
Shops & Services 13%
Hotels & Casinos 10%
Home Improvements & Furnishings 2%
McDonald's
Dining
15,871 visits/mo
0.5 miles
Checkers
Dining
6,149 visits/mo
0.1 miles
Lee's Famous Recipe Chicken
Dining
5,202 visits/mo
0.5 miles
Barrio Tacos
Dining
4,643 visits/mo
0.4 miles
Hilton Garden Inn Kalamazoo Downtown
Hotels & Casinos
4,289 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Freestanding retail building with Adult-Use license in prime location.
Where is this retail space located?
The property is located at 525 Kalamazoo Kalamazoo, MI.
What is the asking price?
The asking price for this property is $399,999.
What are key features of this property?
This property features: Prime downtown Kalamazoo location near three major colleges/universities.; Includes an Adult‑Use license, making it a turnkey Provisioning Center.; High traffic location on East Kalamazoo Avenue (17,121+ vehicles per day).
