Flex Space with
For Sale
$399,000
2005 E Michigan Avenue, Jackson, MI 49202
Multi-area commercial property with warehouse space, overhead doors, offices, and on-site parking.
Property Size2,916 SF
Price / SF$136.83
Days on Market502
Property Features for 2005 E Michigan Avenue
General Information
Standard status
Active
Size
2,916 SF
Property subtype
Industrial
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
showroom
reception area
office
break room
storage
warehouse
overhead doors
3
Composition
Building Details
Year Built
1985
Buildings
1
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 740-4421
Listed By:
ALEX PERLOS · License #6501210977
(517) 740-4421
Source:
Xome
Added: Apr 5, 2025
Changed: Aug 18
Last Checked: Aug 18 at 4:55AM
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 ERA Reardon Realty, L.L.C.
Investment Insights
Based on property information with market context.
This flex space was built in 1985 and includes a showroom, reception area, office, break room, storage areas, and warehouse space. Overhead doors and on-site parking support a range of commercial layouts and operational needs. The property was formerly used as an auto dealership and detail shop.
The building is located at 2005 E Michigan Avenue in Jackson, near downtown Jackson, Henry Ford, Jackson’s historic train station, shops, and restaurants. US-127 and I-94 are also nearby. A deed restriction excludes oil change businesses.
The building is located at 2005 E Michigan Avenue in Jackson, near downtown Jackson, Henry Ford, Jackson’s historic train station, shops, and restaurants. US-127 and I-94 are also nearby. A deed restriction excludes oil change businesses.
Key Highlights
- Flex space at 2005 E Michigan Avenue, Jackson, MI 49202
- Built in 1985
- Showroom, reception area, office, break room, and storage
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
$27,389
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
6.86%
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%
$547,780
$547.8K
Cap Rate 7%
$391,271
$391.3K
Cap Rate 9%
$304,322
$304.3K
Market Conditions
NOI Build-Up for 2,916 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
$47.2K $16.20/SF
− Vacancy
−$5.1K −$1.75/SF
EGI
$42.1K $14.45/SF
− OpEx
−$14.7K −$5.06/SF
NOI
$27.4K $9.39/SF
Area
Jackson County, MI
Vacancy
10.80%
Lease Rate
$16.20 /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%
$547,780
Cap Rate 7%
$391,271
Cap Rate 9%
$304,322
Alternative Uses
Best Use
Flex RnD
$391.3K
$342.4K – $456.5K
NOI $27,389 @ 7.0% cap · market cap 6.86%
Second Best
Warehouse
$351.4K
$307.5K – $410.0K
NOI $24,600 @ 7.0% cap · market cap 6.17%
Theoretical Best
Office A
$465.5K
$407.3K – $543.1K
NOI $32,585 @ 7.0% cap · market cap 8.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,887
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49202, MI
19,359
Population
9,598
Households
2
Avg Household Size
37
Median Age
15%
College-Educated
91%
High-School Grad
12.7 sq mi
ZIP Area
1,524
Density / Sq Mi
$41,916
Median Household Income
$30,638
Median Earnings
$915
Median Rent
$104,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Multi-area commercial property with warehouse space, overhead doors, offices, and on-site parking.
Where is this flex space located?
The property is located at 2005 E Michigan Avenue Jackson, MI.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Flex space at 2005 E Michigan Avenue, Jackson, MI 49202; Built in 1985; Showroom, reception area, office, break room, and storage
