Retail Storefront with Tire
For Sale
Contact for pricing
5101 S Pennsylvania Ave, Lansing, MI 48911
Two existing businesses are included—Mikho's Smoke Shop and a tire shop—at a high-traffic intersection location.
Property Size3,071 SF
Price / SF$162.81
Days on Market507
Property Features for 5101 S Pennsylvania Ave
General Information
Standard status
Active
Size
3,071 SF
Property subtype
RETAIL
Additional Details
Business Included
Yes
Listing Agency:
RE/MAX COMMERCIAL GROUP
(517) 980-9299
Listed By:
Matthew Wisniewski, CCIM · License #6501360426
(517) 980-9299
Source:
Moodyscre
Added: Apr 2, 2025
Changed: Aug 15
Last Checked: Aug 15 at 9:42AM
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 RE/MAX COMMERCIAL GROUP
Investment Insights
Based on property information with market context.
This commercial property is offered for sale with two current operations included in the sale: Mikho's Smoke Shop and a tire shop. The offering represents a ready-to-run retail setup with the businesses occupying the site.
The property is located at the high-traffic intersection of Jolly and Pennsylvania at 5101 S Pennsylvania Ave in Lansing, Michigan, supporting strong day-to-day customer exposure.
At approximately 3,071 square feet, the site is positioned for buyers seeking a commercial property with dual revenue streams already in place.
The property is located at the high-traffic intersection of Jolly and Pennsylvania at 5101 S Pennsylvania Ave in Lansing, Michigan, supporting strong day-to-day customer exposure.
At approximately 3,071 square feet, the site is positioned for buyers seeking a commercial property with dual revenue streams already in place.
Key Highlights
- Commercial property at the high‑traffic intersection of Jolly and Pennsylvania
- Two existing businesses included in the sale: Mikho's Smoke Shop and a tire shop
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
$27,796
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
5.56%
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%
$555,920
$555.9K
Cap Rate 7%
$397,086
$397.1K
Cap Rate 9%
$308,844
$308.8K
Market Conditions
NOI Build-Up for 3,071 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
$46.1K $15.00/SF
− Vacancy
−$6.4K −$2.07/SF
EGI
$39.7K $12.93/SF
− OpEx
−$11.9K −$3.88/SF
NOI
$27.8K $9.05/SF
Area
Lansing, MI
Vacancy
13.80%
Lease Rate
$15.00 /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%
$555,920
Cap Rate 7%
$397,086
Cap Rate 9%
$308,844
Alternative Uses
Best Use
Retail
$397.1K
$347.5K – $463.3K
NOI $27,796 @ 7.0% cap · market cap 5.56%
Second Best
Industrial
$285.1K
$249.4K – $332.6K
NOI $19,954 @ 7.0% cap · market cap 3.99%
Theoretical Best
Office A
$632.1K
$553.1K – $737.5K
NOI $44,250 @ 7.0% cap · market cap 8.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
768
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48911, MI
40,566
Population
18,069
Households
2.2
Avg Household Size
36
Median Age
26%
College-Educated
90%
High-School Grad
17.3 sq mi
ZIP Area
2,345
Density / Sq Mi
$54,882
Median Household Income
$36,245
Median Earnings
$933
Median Rent
$136,900
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- Belen's Flowers — 1434 E Jolly Rd, Lansing, MI 48910
Frequently Asked Questions
What type of property is this?
Storefront property - Two existing businesses are included—Mikho's Smoke Shop and a tire shop—at a high-traffic intersection location.
Where is this storefront property located?
The property is located at 5101 S Pennsylvania Ave Lansing, MI.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Commercial property at the high‑traffic intersection of Jolly and Pennsylvania; Two existing businesses included in the sale: Mikho's Smoke Shop and a tire shop
