Freestanding Medical Office
New
For Sale
$949,000
1727 S Park Street, Kalamazoo, MI 49001
Renovated layout includes exam rooms, private offices, sales space, and storage.
Property Size8,505 SF
Days on Market3
Property Features for 1727 S Park Street
General Information
Standard status
Active
Size
8,505 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$32,854
Building Details
Building Size
8,505 SF
Year Built
2001
Buildings
1
Units
1
Listing Agency:
NAI Wisinski of West Michigan
(269) 353-0311
Listed By:
Jodi K Milks · License #6506044331
Source:
Eliterealtymi
Added: Aug 9
Changed: Aug 10
Last Checked: Aug 10 at 9:09AM
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 NAI Wisinski of West Michigan
Investment Insights
Based on property information with market context.
This freestanding medical office property contains 8,505 SF on 0.86 acres. Constructed in 2001 and updated in 2013, the building includes exam rooms, private offices, a sales floor, and storage areas. Its prior optical retail and medical office configuration supports medical, dental, and professional office applications.
The property is located at 1727 S Park Street in Kalamazoo, near Downtown Kalamazoo, the arena development, the WMED campus, Western Michigan University, and Kalamazoo College. Furniture is negotiable. A new Reciprocal Easement Agreement will be established by the owner before closing, and adjacent buildings are also available for sale and lease.
The property is located at 1727 S Park Street in Kalamazoo, near Downtown Kalamazoo, the arena development, the WMED campus, Western Michigan University, and Kalamazoo College. Furniture is negotiable. A new Reciprocal Easement Agreement will be established by the owner before closing, and adjacent buildings are also available for sale and lease.
Key Highlights
- 8,505 SF freestanding medical office building on 0.86 acres
- Built in 2001 and renovated in 2013
- Exam rooms, private offices, sales floor, and storage
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
$85,241
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
8.98%
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%
$1,704,820
$1.7M
Cap Rate 7%
$1,217,729
$1.2M
Cap Rate 9%
$947,122
$947.1K
Market Conditions
NOI Build-Up for 8,505 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
$122.5K $14.40/SF
− Vacancy
−$8.8K −$1.04/SF
EGI
$113.7K $13.36/SF
− OpEx
−$28.4K −$3.34/SF
NOI
$85.2K $10.02/SF
Area
Kalamazoo County, MI
Vacancy
7.20%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
25.00%
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%
$1,704,820
Cap Rate 7%
$1,217,729
Cap Rate 9%
$947,122
Alternative Uses
Best Use
Office B
$1.22M
$1.07M – $1.42M
NOI $85,241 @ 7.0% cap · market cap 8.98%
Second Best
Healthcare Medical
$1.09M
$955.9K – $1.27M
NOI $76,468 @ 7.0% cap · market cap 8.06%
Theoretical Best
Warehouse
$2.23M
$1.95M – $2.60M
NOI $155,791 @ 7.0% cap · market cap 16.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
712
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49001, MI
21,730
Population
9,670
Households
2.2
Avg Household Size
34
Median Age
30%
College-Educated
89%
High-School Grad
7.7 sq mi
ZIP Area
2,822
Density / Sq Mi
$52,327
Median Household Income
$35,447
Median Earnings
$1,055
Median Rent
$139,600
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 - Renovated layout includes exam rooms, private offices, sales space, and storage.
Where is this medical office space located?
The property is located at 1727 S Park Street Kalamazoo, MI.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: 8,505 SF freestanding medical office building on 0.86 acres; Built in 2001 and renovated in 2013; Exam rooms, private offices, sales floor, and storage
