Office and Flex Industrial
For Sale
$1,376,000
1725 S Park St, Kalamazoo, MI 49001
Renovated flex building with offices, lab/shop areas, heavy power, and two grade-level overhead doors for shipping access.
Property Size16,190 SF
Lot Size1.28 Acres
Price / SF$84.99
Days on Market105
Property Features for 1725 S Park St
General Information
Standard status
Active
Size
16,190 SF
Lot size
1.28 Acres
Property subtype
Commercial
Warehouse & Industrial
Drive-In Doors
2
Heavy Power
Yes
Taxes and HOA fees
Annual Taxes
$51,485
Building Details
Year Built
1989
Year Renovated
2014
Units
1
Listing Agency:
NAI Wisinski of West Michigan
(269) 353-0311
Listed By:
Jodi K Milks · License #6501373674
Source:
Elliman
Added: May 9
Changed: Aug 21
Last Checked: Aug 21 at 8:05AM
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.
Freestanding office and light industrial flex building available for sale, featuring a flexible layout that includes office, lab, and shop space. The property was renovated in 2014 and includes updated systems plus 1,000 amps (120/208V) of heavy power. Key fob-secured entry supports controlled access, and the building is configured with two grade-level overhead doors measuring 18' x 9' and 10' x 9' to support efficient shipping and receiving operations.
The property sits on 1.28 acres and is located just minutes from Downtown Kalamazoo, the new arena development, WMED campus, Western Michigan University, and Kalamazoo College. The owner will establish a new Reciprocal Easement Agreement prior to closing, and adjacent buildings are available for sale and lease.
With its combination of office space and light industrial improvements, the building is positioned for specialized or general business use where lab or shop functions may be required.
The property sits on 1.28 acres and is located just minutes from Downtown Kalamazoo, the new arena development, WMED campus, Western Michigan University, and Kalamazoo College. The owner will establish a new Reciprocal Easement Agreement prior to closing, and adjacent buildings are available for sale and lease.
With its combination of office space and light industrial improvements, the building is positioned for specialized or general business use where lab or shop functions may be required.
Key Highlights
- 16,190 SF freestanding office/lab/flex building on 1.28 acres, built in 1989
- Renovated in 2014 with updated systems
- Heavy power service: 1,000 Amps (120/208V)
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
$109,209
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
7.94%
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%
$2,184,180
$2.2M
Cap Rate 7%
$1,560,129
$1.6M
Cap Rate 9%
$1,213,433
$1.2M
Market Conditions
NOI Build-Up for 16,190 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
$178.7K $11.04/SF
− Vacancy
−$10.7K −$0.66/SF
EGI
$168.0K $10.38/SF
− OpEx
−$58.8K −$3.63/SF
NOI
$109.2K $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%
$2,184,180
Cap Rate 7%
$1,560,129
Cap Rate 9%
$1,213,433
Alternative Uses
Best Use
Industrial
$3.49M
$3.05M – $4.07M
NOI $244,227 @ 7.0% cap · market cap 17.75%
Second Best
Office B
$2.32M
$2.03M – $2.70M
NOI $162,263 @ 7.0% cap · market cap 11.79%
Theoretical Best
Warehouse
$4.24M
$3.71M – $4.94M
NOI $296,561 @ 7.0% cap · market cap 21.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
665
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49001, MI
21,730
Population
9,670
Households
2.2
Avg Household Size
34
Median Age
30%
College-Educated
89%
High-School Grad
7.7 sq mi
ZIP Area
2,822
Density / Sq Mi
$52,327
Median Household Income
$35,447
Median Earnings
$1,055
Median Rent
$139,600
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 - Renovated flex building with offices, lab/shop areas, heavy power, and two grade-level overhead doors for shipping access.
Where is this flex space located?
The property is located at 1725 S Park St Kalamazoo, MI.
What is the asking price?
The asking price for this property is $1,376,000.
What are key features of this property?
This property features: 16,190 SF freestanding office/lab/flex building on 1.28 acres, built in 1989; Renovated in 2014 with updated systems; Heavy power service: 1,000 Amps (120/208V)
