Vacant Office Building with
For Sale
$399,000
1662 Otsego Avenue, Gaylord, MI 49735
Vacant office building with five exam rooms, reception area, and full basement, plus paved driveway and parking.
Property Size4,000 SF
Lot Size1.64 Acres
Price / SF$99.75
Days on Market33
Property Features for 1662 Otsego Avenue
General Information
Standard status
Active
Size
4,000 SF
Lot size
1.64 Acres
Property subtype
Office
Additional Details
Traffic Count
14,000 vehicles/day
Amenities
3
Parking.
Lot, Paved Driveway.
125 x 600 x 125 x 593, 1.64
Asphalt.
Listing Agency:
Berkshire Hathaway HomeServices
(616) 581-1005
Listed By:
Lee Walski · License #6501280759
(616) 581-1005
Source:
Xome
Added: Jul 11
Changed: Aug 8
Last Checked: Aug 12 at 4:24AM
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 Berkshire Hathaway HomeServices
Investment Insights
Based on property information with market context.
This vacant office building was previously used as a podiatrist office and includes five exam rooms, a reception area, and a bathroom. The property also features a full basement and a sign/sign stanchion with electrical in place. A paved cement driveway and parking area are provided on the site.
The building sits on a 1.64-acre parcel. The public remarks indicate an average daily traffic count of 14,000+ vehicles per day.
With the existing interior layout and site improvements, the property offers a straightforward office configuration and additional site area that may support land lease opportunities for passive income, subject to applicable terms and approvals.
The building sits on a 1.64-acre parcel. The public remarks indicate an average daily traffic count of 14,000+ vehicles per day.
With the existing interior layout and site improvements, the property offers a straightforward office configuration and additional site area that may support land lease opportunities for passive income, subject to applicable terms and approvals.
Key Highlights
- Vacant office building previously used as a podiatrist office, with 5 exam rooms and a reception area
- Includes 1 bathroom and 3 guest facilities
- Full basement
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
$33,168
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
8.31%
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%
$663,360
$663.4K
Cap Rate 7%
$473,829
$473.8K
Cap Rate 9%
$368,533
$368.5K
Market Conditions
NOI Build-Up for 4,000 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
$58.6K $14.64/SF
− Vacancy
−$3.3K −$0.82/SF
EGI
$55.3K $13.82/SF
− OpEx
−$22.1K −$5.53/SF
NOI
$33.2K $8.29/SF
Area
Otsego County, MI
Vacancy
5.60%
Lease Rate
$14.64 /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%
$663,360
Cap Rate 7%
$473,829
Cap Rate 9%
$368,533
Alternative Uses
Best Use
Office B
$635.3K
$555.9K – $741.2K
NOI $44,474 @ 7.0% cap · market cap 11.15%
Second Best
Healthcare Medical
$473.8K
$414.6K – $552.8K
NOI $33,168 @ 7.0% cap · market cap 8.31%
Theoretical Best
Warehouse
$5.48M
$4.79M – $6.39M
NOI $383,520 @ 7.0% cap · market cap 96.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
253
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49735, MI
20,568
Population
11,551
Households
1.8
Avg Household Size
44
Median Age
27%
College-Educated
94%
High-School Grad
248.6 sq mi
ZIP Area
83
Density / Sq Mi
$69,050
Median Household Income
$39,813
Median Earnings
$876
Median Rent
$200,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Vacant office building with five exam rooms, reception area, and full basement, plus paved driveway and parking.
Where is this medical office space located?
The property is located at 1662 Otsego Avenue Gaylord, MI.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Vacant office building previously used as a podiatrist office, with 5 exam rooms and a reception area; Includes 1 bathroom and 3 guest facilities; Full basement
