Building Details

Year Built 1990

Buildings 1

Listing Agency: EXP Realty LLC a***@hoffmanteamre.com Show Phone

Listed By: Alexia Hoffman · License #6501414077 Show Phone

Source: Exitrealty

Added: Mar 19, 2025 Changed: Aug 29 Last Checked: Aug 29 at 11:46PM

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Investment Insights

Based on property information with market context.

This 2,520-square-foot commercial building, constructed in 1990, is classified as flex space and carries Town Center mixed-use zoning. The layout is positioned for wellness, massage therapy, salon, retail, or office operations, with the owner willing to include the existing salon equipment. Ample parking is available for customers and staff.

Recent improvements include a new roof and deck completed in 2023, along with new exterior trim and gutters installed in 2024. Building systems include two new furnaces, two new AC units, and a natural-gas-connected generator. The property is located just off the highway, with stated access from Grand Rapids, Lansing, Lake Odessa, Hastings, and Ionia.

Key Highlights

• 2,520‑square‑foot commercial building constructed in 1990
• Town Center mixed‑use zoning
• Existing salon equipment may remain with the property

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

$26,656

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

5.92%

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%

$533,120 $533.1K

Cap Rate 7%

$380,800 $380.8K

Cap Rate 9%

$296,178 $296.2K

Market Conditions

NOI Build-Up for 2,520 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

$42.9K $17.04/SF

− Vacancy

−$1.9K −$0.77/SF

EGI

$41.0K $16.27/SF

− OpEx

−$14.4K −$5.70/SF

NOI

$26.7K $10.58/SF

Area

Ionia County, MI

Vacancy

4.50%

Lease Rate

$17.04 /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%

$533,120

Cap Rate 7%

$380,800

Cap Rate 9%

$296,178

Alternative Uses

Best Use

Flex RnD

$380.8K

$333.2K – $444.3K (±1% cap)

NOI $26,656 @ 7.0% cap · market cap 5.92%

Second Best

Retail

$351.5K

$307.6K – $410.1K (±1% cap)

NOI $24,608 @ 7.0% cap · market cap 5.47%

Theoretical Best

Specialty Retail

$480.2K

$420.2K – $560.2K (±1% cap)

NOI $33,613 @ 7.0% cap · market cap 7.47%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Christina L. Reisinger, ... Pediatrician Rock It Salon Hair Salon Mystic Skin Hair Salon

Suggested Use

Top Pick HVAC Service Building Supply Grocery & Convenience Store Big Box & Wholesale Store Tanning Salon Skin Care Clinic

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

49

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 48815, MI

2,297

Population

872

Households

2.6

Avg Household Size

40

Median Age

32%

College-Educated

95%

High-School Grad

26.8 sq mi

ZIP Area

86

Density / Sq Mi

$83,446

Median Household Income

$48,775

Median Earnings

$237,500

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Flex space - Town Center zoning accommodates wellness, salon, retail, and office uses.

Where is this flex space located?

The property is located at 155 E Cross Street Clarksville, MI.

What is the asking price?

The asking price for this property is $450,000.

What are key features of this property?

This property features: 2,520‑square‑foot commercial building constructed in 1990; Town Center mixed‑use zoning; Existing salon equipment may remain with the property