Single-Tenant Office
New
For Sale
$8,450,000
120 E Jolly Rd, Lansing, MI 48910
A single-story federal office property with MX-2 zoning and a long record of government occupancy.
Property Size34,202 SF
Price / SF$247.06
Days on Market5
Property Features for 120 E Jolly Rd
General Information
Standard status
Active
Size
34,202 SF
Elevators
No
Property subtype
Office
Zoning
MX-2
Occupancy
100%
Additional Details
Office Units
1
Building Details
Building Size
34,202 SF
Buildings
1
Stories
1
Tenancy
Single
Parking Ratio
4.09 per 1,000 SF
Abandoned
No
Listing Agency:
Colliers
Listed By:
Raymond Jonna
(248) 226-1611
Source:
Cpix.resimplifi
Added: Sep 21
Changed: Sep 25
Last Checked: Sep 24 at 2:51PM
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 Colliers
Investment Insights
Based on property information with market context.
At 120 E Jolly Rd in Lansing, this 34,202-square-foot office building is configured for a single tenant and has a single-story layout. It was built to the occupying tenant’s specifications and has had nearly four decades of continuous federal occupancy. The property is identified as the only MEPS serving central and lower Michigan.
Parking is provided at a ratio of 4.09 spaces per 1,000 square feet. The site is zoned MX-2. Rent grows annually, and the remarks note no stated escalation clause.
Parking is provided at a ratio of 4.09 spaces per 1,000 square feet. The site is zoned MX-2. Rent grows annually, and the remarks note no stated escalation clause.
Key Highlights
- 34,202‑square‑foot, single‑tenant federal office building
- Nearly four decades of continuous federal occupancy
- Single‑story building designed to the tenant’s specifications
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
$329,981
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
3.91%
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%
$6,599,620
$6.6M
Cap Rate 7%
$4,714,014
$4.7M
Cap Rate 9%
$3,666,456
$3.7M
Market Conditions
NOI Build-Up for 34,202 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
$550.0K $16.08/SF
− Vacancy
−$110.0K −$3.22/SF
EGI
$440.0K $12.86/SF
− OpEx
−$110.0K −$3.22/SF
NOI
$330.0K $9.65/SF
Area
Lansing, MI
Vacancy
20.00%
Lease Rate
$16.08 /SF/Yr
Expense Ratio
25.00%
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%
$6,599,620
Cap Rate 7%
$4,714,014
Cap Rate 9%
$3,666,456
Alternative Uses
Best Use
Office B
$4.71M
$4.12M – $5.50M
NOI $329,981 @ 7.0% cap · market cap 3.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.04M
$6.16M – $8.21M
NOI $492,814 @ 7.0% cap · market cap 5.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
591
Businesses Nearby
Explore this area
Business Placement
Demographics for 48910, MI
33,702
Population
17,119
Households
2
Avg Household Size
35
Median Age
32%
College-Educated
91%
High-School Grad
14.2 sq mi
ZIP Area
2,373
Density / Sq Mi
$52,154
Median Household Income
$36,643
Median Earnings
$1,003
Median Rent
$117,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - A single-story federal office property with MX-2 zoning and a long record of government occupancy.
Where is this office building located?
The property is located at 120 E Jolly Rd Lansing, MI.
What is the asking price?
The asking price for this property is $8,450,000.
What are key features of this property?
This property features: 34,202‑square‑foot, single‑tenant federal office building; Nearly four decades of continuous federal occupancy; Single‑story building designed to the tenant’s specifications
