Kalamazoo R&D Office
For Sale
$3,995,000
4775 Campus Dr, Kalamazoo, MI 49008
Class A office building near Western Michigan University for sale.
Property Size23,059 SF
Price / SF$173.25
Days on Market121
Property Features for 4775 Campus Dr
General Information
Standard status
Active
Size
23,059 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$95,283
Building Details
Year Built
2002
Units
4
Listing Agency:
NAI Wisinski of West Michigan
(269) 353-0311
Listed By:
Jodi K Milks · License #6506044331
Source:
Elliman
Added: Apr 24
Changed: Aug 12
Last Checked: Aug 21 at 11:59AM
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 NAI Wisinski of West Michigan
Investment Insights
Based on property information with market context.
This Class A, 23,059 square foot R&D office building is located within Western Michigan University's Business Technology and Research Park in Kalamazoo. The property features extensive window lines and a flexible floor plan that includes a mix of private offices and open work areas. The building is 87% leased to long-time tenants, including EPS Security, StructureTec, and Jones & Henry Engineering. One suite was recently vacated due to tenant expansion and is currently being marketed for lease. The property is positioned minutes from US-131 and I-94, offering direct proximity to Western Michigan University's College of Engineering, which provides access to a strong regional talent pipeline. The building is zoned CBTR (Commercial, Business, Technology, and Research) in the City of Kalamazoo. The sale price is based on a 7.7% cap rate and a 13% vacancy rate. The location has a walk score of 28, indicating it is car-dependent, and a bike score of 26, indicating it is somewhat bikeable.
Key Highlights
- Class A, 23,059 SF R&D office building in Western Michigan University's Business Technology and Research Park.
- 87% leased to long‑term tenants including EPS Security, StructureTec, and Jones & Henry Engineering.
- Located minutes from US‑131 and I‑94, with direct proximity to Western Michigan University's College of Engineering.
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
$231,107
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
5.78%
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%
$4,622,140
$4.6M
Cap Rate 7%
$3,301,529
$3.3M
Cap Rate 9%
$2,567,856
$2.6M
Market Conditions
NOI Build-Up for 23,059 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
$332.0K $14.40/SF
− Vacancy
−$23.9K −$1.04/SF
EGI
$308.1K $13.36/SF
− OpEx
−$77.0K −$3.34/SF
NOI
$231.1K $10.02/SF
Area
Kalamazoo County, MI
Vacancy
7.20%
Lease Rate
$14.40 /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%
$4,622,140
Cap Rate 7%
$3,301,529
Cap Rate 9%
$2,567,856
Alternative Uses
Best Use
Office B
$3.30M
$2.89M – $3.85M
NOI $231,107 @ 7.0% cap · market cap 5.78%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$6.03M
$5.28M – $7.04M
NOI $422,385 @ 7.0% cap · market cap 10.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
132
Businesses Nearby
Explore this area
Business Placement
Demographics for 49008, MI
18,343
Population
7,124
Households
2.6
Avg Household Size
31
Median Age
55%
College-Educated
95%
High-School Grad
6.7 sq mi
ZIP Area
2,738
Density / Sq Mi
$67,339
Median Household Income
$31,756
Median Earnings
$1,005
Median Rent
$202,400
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?
Office building - Class A office building near Western Michigan University for sale.
Where is this office building located?
The property is located at 4775 Campus Dr Kalamazoo, MI.
What is the asking price?
The asking price for this property is $3,995,000.
What are key features of this property?
This property features: Class A, 23,059 SF R&D office building in Western Michigan University's Business Technology and Research Park.; 87% leased to long‑term tenants including EPS Security, StructureTec, and Jones & Henry Engineering.; Located minutes from US‑131 and I‑94, with direct proximity to Western Michigan University's College of Engineering.
