Building Details

Year Built 19

Listing Agency: s***@atlasrealestate.com Show Phone

Listed By: Atlas Real Estate Show Phone

Source: Xome

Added: Apr 22 Changed: Sep 2 Last Checked: Sep 2 at 3:49PM

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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 Atlas Real Estate

Investment Insights

Based on property information with market context.

This 1,620 SF flex property combines a customer-facing front showroom with rear storage featuring high ceilings. The interior also includes a small kitchen and bathroom, creating a practical configuration for showroom, office, service, or specialty retail functions. A recently installed forced-air furnace provides building heat.

The property is located at N 14124 N State Road Unit SourceFi in Otisville, Michigan. Its flexible arrangement and existing improvements provide a straightforward starting point for a range of commercial operations, subject to the applicable use requirements.

Key Highlights

• 1,620 SF flex property with front showroom and rear storage
• Rear storage area includes high ceilings
• New forced‑air furnace provides building heat

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

$9,175

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

5.74%

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%

$183,500 $183.5K

Cap Rate 7%

$131,071 $131.1K

Cap Rate 9%

$101,944 $101.9K

Market Conditions

NOI Build-Up for 1,620 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

$14.6K $9.00/SF

− Vacancy

−$1.5K −$0.91/SF

EGI

$13.1K $8.09/SF

− OpEx

−$3.9K −$2.43/SF

NOI

$9.2K $5.66/SF

Area

Genesee County, MI

Vacancy

10.10%

Lease Rate

$9.00 /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%

$183,500

Cap Rate 7%

$131,071

Cap Rate 9%

$101,944

Alternative Uses

Best Use

Retail

$240.2K

$210.2K – $280.3K (±1% cap)

NOI $16,817 @ 7.0% cap · market cap 10.52%

Second Best

Industrial

$131.1K

$114.7K – $152.9K (±1% cap)

NOI $9,175 @ 7.0% cap · market cap 5.74%

Theoretical Best

Office A

$340.9K

$298.3K – $397.7K (±1% cap)

NOI $23,862 @ 7.0% cap · market cap 14.92%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

O'Dell's Country Carpet Carpet & Flooring Store The Village Bluebird Home Decor Store

Suggested Use

Top Pick Building Supply Auto Repair Shop HVAC Service Big Box & Wholesale Store Pharmacy Hair Salon

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

Location Intelligence

Trade Area within ½ mile

12

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 48463, MI

4,423

Population

1,902

Households

2.3

Avg Household Size

49

Median Age

18%

College-Educated

89%

High-School Grad

33.3 sq mi

ZIP Area

133

Density / Sq Mi

$69,893

Median Household Income

$38,451

Median Earnings

$835

Median Rent

$179,000

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

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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?

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Frequently Asked Questions

What type of property is this?

Flex space - Front display space, rear storage, elevated ceilings, a small kitchen, and a bathroom support varied commercial uses.

Where is this flex space located?

The property is located at 14124 N State Road Otisville, MI.

What is the asking price?

The asking price for this property is $159,900.

What are key features of this property?

This property features: 1,620 SF flex property with front showroom and rear storage; Rear storage area includes high ceilings; New forced‑air furnace provides building heat