Building Details

Year Built 1970

Buildings 1

Construction vinyl-sided

Tenancy Single

Listing Agency: RE/MAX Mid-Michigan R.E.

Listed By: Stephanie Bosanac-Mortimer · License #6501336455 Show Phone

Source: Katie-k

Added: Sep 2 Changed: Sep 4 Last Checked: Sep 5 at 10:16AM

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Investment Insights

Based on property information with market context.

This freestanding storefront property occupies a 1-acre site and currently operates as a hair salon. The vinyl-sided building includes a drive-through window, natural gas service, and an auto generator. Improvements include parking lot sealcoating, updated gutters, crawlspace insulation, a pressure tank, hot water heater, and refreshed interior and exterior lighting and flooring.

The property is located at 7394 Moscow Rd in Hanover Township, Jackson, Michigan, next door to Dollar General and near Subway, Lomar, and other established businesses. The building dates to 1970 and offers a commercial setting that has supported salon operations while also being described for retail, office, food service, or medical practice use.

Key Highlights

• 1‑acre commercial site with a freestanding vinyl‑sided building
• Drive‑through window, natural gas service, and auto generator
• Currently operating as a hair salon

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

$8,276

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

3.68%

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%

$165,520 $165.5K

Cap Rate 7%

$118,229 $118.2K

Cap Rate 9%

$91,956 $92.0K

Market Conditions

NOI Build-Up for 1,200 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

$14.4K $12.00/SF

− Vacancy

−$2.6K −$2.15/SF

EGI

$11.8K $9.85/SF

− OpEx

−$3.5K −$2.96/SF

NOI

$8.3K $6.90/SF

Area

Jackson County, MI

Vacancy

17.90%

Lease Rate

$12.00 /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%

$165,520

Cap Rate 7%

$118,229

Cap Rate 9%

$91,956

Alternative Uses

Best Use

Retail

$118.2K

$103.5K – $137.9K (±1% cap)

NOI $8,276 @ 7.0% cap · market cap 3.68%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$191.6K

$167.6K – $223.5K (±1% cap)

NOI $13,409 @ 7.0% cap · market cap 5.96%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storefront properties

Suggested Use

Top Pick HVAC Service Auto Repair Shop Electrical Service Pet Grooming Service (Bike/Boat/Book/etc) Store Grocery & Convenience Store

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

Single-tenant

Tenancy

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

17

Businesses Nearby

7k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

6,698 visits/mo 0.4 miles

Demographics for 49246, MI

3,247

Population

1,467

Households

2.2

Avg Household Size

49

Median Age

28%

College-Educated

94%

High-School Grad

34.5 sq mi

ZIP Area

94

Density / Sq Mi

$81,181

Median Household Income

$52,109

Median Earnings

$773

Median Rent

$230,100

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 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 storefront properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Storefront property - Vinyl-sided commercial building with a drive-through window, natural gas service, and backup generator on a one-acre site.

Where is this storefront property located?

The property is located at 7394 Moscow Rd Horton, MI.

What is the asking price?

The asking price for this property is $225,000.

What are key features of this property?

This property features: 1‑acre commercial site with a freestanding vinyl‑sided building; Drive‑through window, natural gas service, and auto generator; Currently operating as a hair salon