Industrial Office Complex with
For Sale
$5,500,000
3700 E Milham Avenue Portage, Portage, MI 49002
Industrial and office complex includes warehouse and ancillary space, plus a class A office suite and three overhead cranes.
Property Size57,500 SF
Days on Market44
Property Features for 3700 E Milham Avenue Portage
General Information
Standard status
Active
Size
57,500 SF
Total Parking Spaces
40
Zoning
I-1
Taxes and HOA fees
Annual Taxes
$22,237
Amenities
Yes
6
1
No
Non-Applicable
6.43
40.0
1 x 1
Paved
57500.0
2
Building Details
Building Size
57,500 SF
Year Built
1949
Buildings
2
Listing Agency:
(269) 399-5881
Listed By:
Eric Essenburg
(269) 399-5881
Source:
Remax-executive
Added: Jul 9
Changed: Aug 16
Last Checked: Aug 21 at 4:03AM
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 Eric Essenburg
Investment Insights
Based on property information with market context.
Industrial/office complex for sale featuring a main warehouse building totaling 43,500 SF and a 10,000 SF ancillary building. The property is designed to support multiple operational needs, with configuration suited to storage, manufacturing, or distribution use.
A 4,000 SF class A office suite is available for use as a turnkey corporate headquarters or regional office. The site includes three overhead cranes, three loading docks, and ample power, which can support a broad range of manufacturing, logistics, distribution, and e-commerce operations.
Four small tenants are currently in place, providing immediate income. The combined warehouse and office setup makes the property especially practical for owner-users and investors seeking both operating space and dedicated corporate office space.
A 4,000 SF class A office suite is available for use as a turnkey corporate headquarters or regional office. The site includes three overhead cranes, three loading docks, and ample power, which can support a broad range of manufacturing, logistics, distribution, and e-commerce operations.
Four small tenants are currently in place, providing immediate income. The combined warehouse and office setup makes the property especially practical for owner-users and investors seeking both operating space and dedicated corporate office space.
Key Highlights
- Two‑building industrial/office complex with 57,500 SF total building area on 6.43 acres
- Main building includes 43,500 SF warehouse space, plus a 10,000 SF ancillary building for storage, manufacturing, or distribution
- Includes a 4,000 SF class A office suite for corporate headquarters or regional office
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
$387,863
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
7.05%
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%
$7,757,260
$7.8M
Cap Rate 7%
$5,540,900
$5.5M
Cap Rate 9%
$4,309,589
$4.3M
Market Conditions
NOI Build-Up for 57,500 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
$634.8K $11.04/SF
− Vacancy
−$38.1K −$0.66/SF
EGI
$596.7K $10.38/SF
− OpEx
−$208.8K −$3.63/SF
NOI
$387.9K $6.75/SF
Area
Kalamazoo County, MI
Vacancy
6.00%
Lease Rate
$11.04 /SF/Yr
Expense Ratio
35.00%
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%
$7,757,260
Cap Rate 7%
$5,540,900
Cap Rate 9%
$4,309,589
Alternative Uses
Best Use
Warehouse
$15.05M
$13.17M – $17.55M
NOI $1,053,260 @ 7.0% cap · market cap 19.15%
Second Best
Industrial
$12.39M
$10.84M – $14.46M
NOI $867,391 @ 7.0% cap · market cap 15.77%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
122
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49002, MI
19,553
Population
8,975
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
96%
High-School Grad
17.3 sq mi
ZIP Area
1,130
Density / Sq Mi
$71,621
Median Household Income
$45,938
Median Earnings
$910
Median Rent
$223,000
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?
Flex space - Industrial and office complex includes warehouse and ancillary space, plus a class A office suite and three overhead cranes.
Where is this flex space located?
The property is located at 3700 E Milham Avenue Portage Portage, MI.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: Two‑building industrial/office complex with 57,500 SF total building area on 6.43 acres; Main building includes 43,500 SF warehouse space, plus a 10,000 SF ancillary building for storage, manufacturing, or distribution; Includes a 4,000 SF class A office suite for corporate headquarters or regional office
