Flex Space with Overhead
For Sale
$189,000
1422 LUDINGTON ST, Escanaba, MI 49829
Corner-lot commercial space in downtown Escanaba with updated loading access and an east-side addition.
Property Size1,834 SF
Price / SF$103.05
Days on Market230
Property Features for 1422 LUDINGTON ST
General Information
Standard status
Active
Size
1,834 SF
Property subtype
Industrial
Amenities
Window/Wall Unit
3
Concrete
Flat, Shingle, Rubber
10060
Building Details
Year Built
1911
Listing Agency:
UPWARDS REAL ESTATE
(906) 786-8747
Listed By:
CHRISTINA KING-CARON
(906) 241-2263
Source:
Xome
Added: Jan 16
Changed: Sep 2
Last Checked: Sep 2 at 1:29PM
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 UPWARDS REAL ESTATE
Investment Insights
Based on property information with market context.
This 1,834-square-foot flex space combines an established commercial building with practical updates. Two large overhead garage doors were installed in Fall 2024, and the east end includes an addition completed in 2014. Interior features include concrete construction and a window/wall unit. The roof is approximately 10–12 years old.
The property occupies a corner lot along Ludington Street in downtown Escanaba, providing a central commercial setting with direct street access. Its configuration includes the original building and expanded east-end area, creating additional functional space for commercial operations.
The property occupies a corner lot along Ludington Street in downtown Escanaba, providing a central commercial setting with direct street access. Its configuration includes the original building and expanded east-end area, creating additional functional space for commercial operations.
Key Highlights
- 1,834‑square‑foot flex space in downtown Escanaba
- Two large overhead garage doors added in Fall 2024
- East‑end addition completed in 2014
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
$13,018
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
6.89%
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%
$260,360
$260.4K
Cap Rate 7%
$185,971
$186.0K
Cap Rate 9%
$144,644
$144.6K
Market Conditions
NOI Build-Up for 1,834 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
$22.0K $12.00/SF
− Vacancy
−$2.0K −$1.08/SF
EGI
$20.0K $10.92/SF
− OpEx
−$7.0K −$3.82/SF
NOI
$13.0K $7.10/SF
Area
Delta County, MI
Vacancy
9.00%
Lease Rate
$12.00 /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%
$260,360
Cap Rate 7%
$185,971
Cap Rate 9%
$144,644
Alternative Uses
Best Use
Flex RnD
$186.0K
$162.7K – $217.0K
NOI $13,018 @ 7.0% cap · market cap 6.89%
Second Best
Industrial
$162.0K
$141.8K – $189.1K
NOI $11,343 @ 7.0% cap · market cap 6.00%
Theoretical Best
Office A
$359.0K
$314.1K – $418.9K
NOI $25,131 @ 7.0% cap · market cap 13.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
640
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49829, MI
17,009
Population
8,729
Households
1.9
Avg Household Size
45
Median Age
19%
College-Educated
90%
High-School Grad
66.8 sq mi
ZIP Area
255
Density / Sq Mi
$45,808
Median Household Income
$31,366
Median Earnings
$667
Median Rent
$139,000
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Shane Larson BBQ Catering — 510 2nd Ave S, Escanaba, MI 49829
Frequently Asked Questions
What type of property is this?
Flex space - Corner-lot commercial space in downtown Escanaba with updated loading access and an east-side addition.
Where is this flex space located?
The property is located at 1422 LUDINGTON ST Escanaba, MI.
What is the asking price?
The asking price for this property is $189,000.
What are key features of this property?
This property features: 1,834‑square‑foot flex space in downtown Escanaba; Two large overhead garage doors added in Fall 2024; East‑end addition completed in 2014
