Downtown Muskegon Investment
For Sale
$1,200,000
1208 8th Street, Muskegon, MI 49440
Retail property in prime location near Muskegon Lake.
Property Size6,522 SF
Price / SF$183.99
Days on Market178
Property Features for 1208 8th Street
General Information
Standard status
Active
Size
6,522 SF
Zoning
B3
Taxes and HOA fees
Annual Taxes
$2,386
Amenities
Central Air
Natural Gas, Forced Air
Building Details
Building Size
6,522 SF
Year Built
1947
Buildings
1
Stories
1
Listing Agency:
Core Realty Partners LLC
(231) 578-2508
Listed By:
Bryan D Bench · License #6501349494
(231) 578-2508
Source:
Evrealestate
Added: Feb 27
Changed: Aug 23
Last Checked: Aug 24 at 4:47AM
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 Core Realty Partners LLC
Investment Insights
Based on property information with market context.
This property presents an investment opportunity in downtown Muskegon. The building has been improved with new utilities, a new roof, new windows, and new restrooms. The interior is finished to a white-box condition, and the tenant intends to complete the space for use as a restaurant and bar. The property is situated in a prime location at the intersection of W. Western Avenue and 8th Street, across from Muskegon Lake and Heritage Landing, a popular waterfront gathering place that hosts many community festivals and events. The property size is 6,522 square feet.
Key Highlights
- Prime downtown Muskegon location at W. Western Avenue and 8th Street.
- Situated across from Muskegon Lake and Heritage Landing.
- Investment opportunity with tenant intending to finish space for restaurant/bar.
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
$84,309
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
7.03%
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%
$1,686,180
$1.7M
Cap Rate 7%
$1,204,414
$1.2M
Cap Rate 9%
$936,767
$936.8K
Market Conditions
NOI Build-Up for 6,522 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
$123.7K $18.96/SF
− Vacancy
−$3.2K −$0.49/SF
EGI
$120.4K $18.47/SF
− OpEx
−$36.1K −$5.54/SF
NOI
$84.3K $12.93/SF
Area
Muskegon County, MI
Vacancy
2.60%
Lease Rate
$18.96 /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%
$1,686,180
Cap Rate 7%
$1,204,414
Cap Rate 9%
$936,767
Alternative Uses
Best Use
Retail
$1.20M
$1.05M – $1.41M
NOI $84,309 @ 7.0% cap · market cap 7.03%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$61.25M
$53.59M – $71.46M
NOI $4,287,382 @ 7.0% cap · market cap 357.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
977
Businesses Nearby
3k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Shell
Shops & Services
3,232 visits/mo
0.5 miles
Demographics for 49440, MI
1,320
Population
860
Households
1.5
Avg Household Size
44
Median Age
36%
College-Educated
93%
High-School Grad
0.6 sq mi
ZIP Area
2,200
Density / Sq Mi
$42,500
Median Household Income
$37,067
Median Earnings
$791
Median Rent
$163,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail property in prime location near Muskegon Lake.
Where is this retail space located?
The property is located at 1208 8th Street Muskegon, MI.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Prime downtown Muskegon location at W. Western Avenue and 8th Street.; Situated across from Muskegon Lake and Heritage Landing.; Investment opportunity with tenant intending to finish space for restaurant/bar.
