High Traffic Corner
For Sale
$465,000
2005 E Michigan Ave, Jackson, MI 49202
Centrally located near downtown, shops, restaurants, and major highways.
Property Size3,000 SF
Lot Size0.62 Acres
Price / SF$155
Days on Market500
Property Features for 2005 E Michigan Ave
General Information
Standard status
Active
Size
3,000 SF
Lot size
0.62 Acres
Taxes and HOA fees
Annual Taxes
$5,667
Listing Agency:
ERA REARDON REALTY, L.L.C.
(517) 740-4421
Listed By:
ALEX C PERLOS · License #6501210977
(517) 740-4421
Source:
Exprealty
Added: Apr 9, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:58AM
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 ERA REARDON REALTY, L.L.C.
Investment Insights
Based on property information with market context.
This property is centrally located near downtown Jackson, Henry Ford, Jackson's historic train station, shops, restaurants, US-127, and I-94. Formerly an auto dealership and detail shop, the property features approximately 3,000 square feet with a showroom, reception area, office, break room, and storage. It also includes a warehouse space, overhead doors, and ample parking. The sale includes 3 lots. A deed restriction excludes oil change businesses.
Key Highlights
- Prime high traffic corner lot location.
- Centrally located near downtown, train station, shops, restaurants, US‑127 and I‑94.
- Approximately 3,000 square feet of 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
$25,309
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
5.44%
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%
$506,180
$506.2K
Cap Rate 7%
$361,557
$361.6K
Cap Rate 9%
$281,211
$281.2K
Market Conditions
NOI Build-Up for 3,000 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
$33.1K $11.04/SF
− Vacancy
−$3.3K −$1.12/SF
EGI
$29.8K $9.92/SF
− OpEx
−$4.5K −$1.49/SF
NOI
$25.3K $8.44/SF
Area
Jackson County, MI
Vacancy
10.10%
Lease Rate
$11.04 /SF/Yr
Expense Ratio
15.00%
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%
$506,180
Cap Rate 7%
$361,557
Cap Rate 9%
$281,211
Alternative Uses
Best Use
Warehouse
$361.6K
$316.4K – $421.8K
NOI $25,309 @ 7.0% cap · market cap 5.44%
Second Best
Industrial
$297.7K
$260.5K – $347.4K
NOI $20,842 @ 7.0% cap · market cap 4.48%
Theoretical Best
Office A
$478.9K
$419.0K – $558.7K
NOI $33,523 @ 7.0% cap · market cap 7.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
578
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49202, MI
19,359
Population
9,598
Households
2
Avg Household Size
37
Median Age
15%
College-Educated
91%
High-School Grad
12.7 sq mi
ZIP Area
1,524
Density / Sq Mi
$41,916
Median Household Income
$30,638
Median Earnings
$915
Median Rent
$104,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Automotive property - Centrally located near downtown, shops, restaurants, and major highways.
Where is this automotive property located?
The property is located at 2005 E Michigan Ave Jackson, MI.
What is the asking price?
The asking price for this property is $465,000.
What are key features of this property?
This property features: Prime high traffic corner lot location.; Centrally located near downtown, train station, shops, restaurants, US‑127 and I‑94.; Approximately 3,000 square feet of space.
