Medical Office with Exam
For Sale
Under Contract
$399,000
1662 S Otsego Avenue, Gaylord, MI 49735
Commercial Sale, Gaylord, MI
Property Size4,000 SF
Lot Size1.64 Acres
Price / SF$99.75
Days on Market46
Property Features for 1662 S Otsego Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Parking features
Parking Lot
Basement
Block, Partially Finished
Subdivision
T30N R3W
Directions
South on South Otsego Avenue out of Gaylord to property on right or West side of street just down from the Pine Squirrel.
Standard status
Active Under Contract
APN
102-110-000-650-00
Size
4,000 SF
Lot size
1.64 Acres
Taxes and HOA fees
Tax Description
S 125 FT OF N 905 FT OF NE 1/4 OF SW 1/4 LYING EOF RR R/W & W OF US 27 SEC 9 T30N R3W (010-009-300-025-01) REF. AN-129
Legal Description
S 125 FT OF N 905 FT OF NE 1/4 OF SW 1/4 LYING EOF RR R/W & W OF US 27 SEC 9 T30N R3W (010-009-300-025-01) REF. AN-129
Utilities
Sewer type
Public Sewer
Building Details
Floors in Building
2
Listing Agency:
Berkshire Hathaway HomeServices
(989) 732-9555
Listed By:
Lee J Walski · License #6501280759
(616) 581-1005
Added: Jul 22
Changed: Sep 5
Last Checked: Sep 5 at 8:06PM
MLS# 201841580
Copyright © 2026 Water Wonderland Board of Realtors®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 1662 S Otsego Avenue in Gaylord, Michigan, this vacant medical office property contains 4,000 square feet arranged for a podiatry practice. The existing layout includes five exam rooms, a reception area, and a bathroom, providing a defined framework for continued medical office use. A full basement adds substantial supporting space.
The property occupies 1.64 acres and includes a paved cement driveway and parking area. An exterior sign stanchion with electric service is already in place. Public sewer serves the site, and the location records an average daily traffic count of more than 14,000 vehicles.
The property occupies 1.64 acres and includes a paved cement driveway and parking area. An exterior sign stanchion with electric service is already in place. Public sewer serves the site, and the location records an average daily traffic count of more than 14,000 vehicles.
Key Highlights
- 4,000‑square‑foot vacant medical office building
- Five exam rooms, reception area, and bathroom remain in place
- Full basement provides additional supporting space
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
Location Intelligence
Trade Area within ½ mile
286
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Vacant office property retains a clinical layout with reception, exam rooms, and an on-site parking area.
Where is this medical office space located?
The property is located at 1662 S 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: 4,000‑square‑foot vacant medical office building; Five exam rooms, reception area, and bathroom remain in place; Full basement provides additional supporting space
