East Lansing Office/Condo
For Sale
$850,000
1550 Watertower Pl, East Lansing, MI 48823
6,915 SF office/condo space in excellent condition.
Property Size6,915 SF
Lot Size0.26 Acres
Price / SF$122.92
Days on Market190
Property Features for 1550 Watertower Pl
General Information
Standard status
Active
Size
6,915 SF
Total Parking Spaces
75
Lot size
0.26 Acres
Property subtype
Office
Zoning
B-4
Building Details
Building Size
6,915 SF
Year Built
2008
Listing Agency:
Colliers Lansing
Listed By:
Jeff Ridenour · License #6502373144
(517) 204-7902
Source:
Cpix.resimplifi
Added: Mar 1
Changed: Aug 7
Last Checked: Sep 7 at 4:49AM
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 Colliers Lansing
Investment Insights
Based on property information with market context.
The property features a 6,915 square foot office/condo space within an 11,984 square foot building, constructed in 2008, situated on a 0.26-acre lot. The space is in very good condition. The build-out includes 12 exam rooms with sinks, numerous medical amenities, and specialty rooms, accommodating approximately 17 staff members. Previously occupied by The Cancer & Hematology Center/Red Cedar Oncology, the current tenant is Hall Matson Garver Thomas Law Offices. The location is 0.6 miles northwest of US-127, 2.4 miles northeast of the US-127 and Business 69 Interchange, and 1.1 miles from Eastwood Towne Center. There are multiple points of ingress/egress from West Road and Coolidge Road, with parking for approximately 75 vehicles. Traffic volume is moderate in the immediate area at 9,591 VPD, increasing to 25,631 VPD on W Lake Lansing Road. The 2025 SEV and Taxable Value is $359,400, with 2025 taxes totaling $26,023.
Key Highlights
- 6,915 SF office/condo space in a 11,984 SF building on a 0.26‑acre lot.
- Built in 2008 and in very good condition.
- Suitable for 17 staff members with (12) exam rooms with sinks and numerous medical amenities.**
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
$58,327
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
6.86%
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%
$1,166,540
$1.2M
Cap Rate 7%
$833,243
$833.2K
Cap Rate 9%
$648,078
$648.1K
Market Conditions
NOI Build-Up for 6,915 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
$124.5K $18.00/SF
− Vacancy
−$27.3K −$3.94/SF
EGI
$97.2K $14.06/SF
− OpEx
−$38.9K −$5.62/SF
NOI
$58.3K $8.43/SF
Area
Ingham County, MI
Vacancy
21.90%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
40.00%
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%
$1,166,540
Cap Rate 7%
$833,243
Cap Rate 9%
$648,078
Alternative Uses
Best Use
Healthcare Medical
$833.2K
$729.1K – $972.1K
NOI $58,327 @ 7.0% cap · market cap 6.86%
Second Best
Office B
$833.2K
$729.1K – $972.1K
NOI $58,327 @ 7.0% cap · market cap 6.86%
Theoretical Best
Office A
$1.11M
$972.1K – $1.30M
NOI $77,769 @ 7.0% cap · market cap 9.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
767
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48823, MI
51,793
Population
23,757
Households
2.2
Avg Household Size
28
Median Age
64%
College-Educated
98%
High-School Grad
23.6 sq mi
ZIP Area
2,195
Density / Sq Mi
$50,837
Median Household Income
$19,837
Median Earnings
$1,127
Median Rent
$261,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 6,915 SF office/condo space in excellent condition.
Where is this medical office space located?
The property is located at 1550 Watertower Pl East Lansing, MI.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 6,915 SF office/condo space in a 11,984 SF building on a 0.26‑acre lot.; Built in 2008 and in very good condition.; Suitable for 17 staff members with (12) exam rooms with sinks and numerous medical amenities.**
