Retail Space Near WMU
For Sale
$949,000
1381 S Drake Rd, Kalamazoo, MI 49006
Retail space for lease near WMU campus at busy intersection.
Property Size3,936 SF
Lot Size0.62 Acres
Price / SF$241.11
Days on Market554
Property Features for 1381 S Drake Rd
General Information
Standard status
Active
Size
3,936 SF
Lot size
0.62 Acres
Taxes and HOA fees
Annual Taxes
$17,225
Listing Agency:
Berner Real Estate
(269) 217-6568
Listed By:
Rick Berner
(269) 217-6568
Source:
Exprealty
Added: Feb 1, 2025
Changed: Aug 8
Last Checked: Aug 8 at 1:23PM
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 Berner Real Estate
Investment Insights
Based on property information with market context.
Available for lease are Units B, C, D, and E, comprising approximately 3936 square feet at a monthly rate of $4,400. This retail space is currently vacant. The property is a high-visibility retail strip center situated near the Western Michigan University (WMU) campus at a busy intersection. Its location benefits from strong traffic flow and stop lights to the north and south, enhancing business exposure. The property is located near a Speedway gas station, Walters Auto, and Costco.
Key Highlights
- High visibility retail/strip center location.
- Located near WMU campus.
- Strong traffic due to busy intersection.
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
$27,144
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
2.86%
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%
$542,880
$542.9K
Cap Rate 7%
$387,771
$387.8K
Cap Rate 9%
$301,600
$301.6K
Market Conditions
NOI Build-Up for 3,936 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 $12.00/SF
− Vacancy
−$8.5K −$2.15/SF
EGI
$38.8K $9.85/SF
− OpEx
−$11.6K −$2.96/SF
NOI
$27.1K $6.90/SF
Area
Kalamazoo 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%
$542,880
Cap Rate 7%
$387,771
Cap Rate 9%
$301,600
Alternative Uses
Best Use
Retail
$387.8K
$339.3K – $452.4K
NOI $27,144 @ 7.0% cap · market cap 2.86%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.03M
$901.2K – $1.20M
NOI $72,098 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
402
Businesses Nearby
473k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 27%
Dining 26%
Superstores 25%
Groceries 10%
Costco Wholesale
Superstores
119,173 visits/mo
0.3 miles
Costco Gasoline
Shops & Services
61,668 visits/mo
0.4 miles
Trader Joe's
Groceries
46,082 visits/mo
0.4 miles
McDonald's
Dining
25,002 visits/mo
0.4 miles
Speedway
Shops & Services
24,068 visits/mo
0.1 miles
Demographics for 49006, MI
25,119
Population
12,093
Households
2.1
Avg Household Size
27
Median Age
44%
College-Educated
91%
High-School Grad
6.0 sq mi
ZIP Area
4,187
Density / Sq Mi
$45,617
Median Household Income
$18,710
Median Earnings
$991
Median Rent
$198,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Retail space for lease near WMU campus at busy intersection.
Where is this strip mall located?
The property is located at 1381 S Drake Rd Kalamazoo, MI.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: High visibility retail/strip center location.; Located near WMU campus.; Strong traffic due to busy intersection.
