Midland Retail Building For
For Sale
$999,000
201 McDonald Street, Midland, MI 48640
Retail building in Midland CBD with redevelopment potential.
Property Size8,786 SF
Lot Size0.54 Acres
Price / SF$113.70
Days on Market129
Property Features for 201 McDonald Street
General Information
Standard status
Active
Size
8,786 SF
Lot size
0.54 Acres
Property subtype
Retail
Listing Agency:
CBRE | Detroit
(248) 351-2051
Listed By:
Dave Long
(248) 351-2051
Source:
Cbre
Added: Apr 15
Changed: Aug 19
Last Checked: Aug 20 at 8:51AM
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 CBRE | Detroit
Investment Insights
Based on property information with market context.
This 8,786 square-foot retail building, originally constructed in 1956 and remodeled in 1998, is situated on a 0.54-acre lot. The property is located in the prime Midland Central Business District (CBD), offering proximity to new developments in the area. The 2025 real estate taxes are estimated to be $31,283.11. The property features a free-standing building with a surface parking lot and is adjacent to a municipal surface parking lot. Zoned D – Downtown District in Midland and within the Midland Downtown Northside Overlay District, the property presents potential for either redevelopment or adaptive reuse.
Key Highlights
- Prime Midland CBD location
- Free standing building with surface parking lot
- Property offers 8,786 SF
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
$60,592
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
6.07%
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%
$1,211,840
$1.2M
Cap Rate 7%
$865,600
$865.6K
Cap Rate 9%
$673,244
$673.2K
Market Conditions
NOI Build-Up for 8,786 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
$105.4K $12.00/SF
− Vacancy
−$18.9K −$2.15/SF
EGI
$86.6K $9.85/SF
− OpEx
−$26.0K −$2.96/SF
NOI
$60.6K $6.90/SF
Area
Midland 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%
$1,211,840
Cap Rate 7%
$865,600
Cap Rate 9%
$673,244
Alternative Uses
Best Use
Retail
$865.6K
$757.4K – $1.01M
NOI $60,592 @ 7.0% cap · market cap 6.07%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$1.59M
$1.39M – $1.85M
NOI $111,006 @ 7.0% cap · market cap 11.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
663
Businesses Nearby
32k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 57%
Home Improvements & Furnishings 36%
Hotels & Casinos 7%
BP
Shops & Services
13,765 visits/mo
0.3 miles
Ace Hardware & Sports
Home Improvements & Furnishings
11,358 visits/mo
0.2 miles
Huntington Bank
Shops & Services
3,819 visits/mo
0.1 miles
Fairfield Inn & Suites by Marriott Midland
Hotels & Casinos
2,251 visits/mo
0.2 miles
Mercantile Bank
Shops & Services
491 visits/mo
0.1 miles
Demographics for 48640, MI
31,840
Population
14,340
Households
2.2
Avg Household Size
41
Median Age
38%
College-Educated
96%
High-School Grad
105.1 sq mi
ZIP Area
303
Density / Sq Mi
$81,630
Median Household Income
$43,353
Median Earnings
$928
Median Rent
$191,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Lapelle's Flowers & Gifts — 1605 Bookness St, Midland, MI 48640
Frequently Asked Questions
What type of property is this?
Storefront property - Retail building in Midland CBD with redevelopment potential.
Where is this storefront property located?
The property is located at 201 McDonald Street Midland, MI.
What is the asking price?
The asking price for this property is $999,000.
What are key features of this property?
This property features: Prime Midland CBD location; Free standing building with surface parking lot; Property offers 8,786 SF
