Commercial Flex Property with
For Sale
$550,000
21220 Creamery Road, Chassell, MI 49916
COM/IND/BUS OPP, Chassell, MI
Property Size2,672 SF
Lot Size3.56 Acres
Price / SF$205.84
Days on Market133
Property Features for 21220 Creamery Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Zoning description
Commercial
Lot features
Rural
Subdivision
Chassell Twp (31005)
Standard status
Active
Size
2,672 SF
Lot size
3.56 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
3566
Utilities
Heating system
Forced Air
Water source
Well
Amenities
security system
Building Details
Year built
1989
Roof type
Shingle, Metal
Additional Structures
Workshop
Listing Agency:
STATE WIDE OF HOUGHTON
(906) 482-6955
Listed By:
KEVIN LIIMATTA · License #UPAR
(906) 370-4440
Added: May 19
Changed: Sep 13
Last Checked: Sep 28 at 4:06AM
MLS# 50208133
Copyright © 2026 Upper Peninsula Association 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.
This commercial flex property on 3.56 acres includes a main building with office and woodshop areas, a pole-building warehouse, a lean-to shed, a storage shed, and an older semi trailer used for additional storage. The main woodshop measures 36x60, with a 16x32 office addition and a 10x34 wood shed. The 32x44 clear-span pole building has large sliding barn doors and electric service, while the 24x70 lean-to provides open-front storage with a high roof.
The property is zoned Commercial and located at 21220 Creamery Road in Chassell, Michigan. Built in 1989, the improvements include updated LED lighting in the main building, a security system, shingle and metal roofing, forced-air heating, and a well water source. Heating for the office and woodshop includes wood heat with propane backup. Some miscellaneous equipment is included, while tools are being sold separately.
The property is zoned Commercial and located at 21220 Creamery Road in Chassell, Michigan. Built in 1989, the improvements include updated LED lighting in the main building, a security system, shingle and metal roofing, forced-air heating, and a well water source. Heating for the office and woodshop includes wood heat with propane backup. Some miscellaneous equipment is included, while tools are being sold separately.
Key Highlights
- 3.56 acres of commercially zoned property in Chassell, MI
- Main woodshop measures 36x60 with a 16x32 office addition
- 32x44 clear‑span pole‑building warehouse with large sliding barn doors
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
$32,976
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
6.00%
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%
$659,520
$659.5K
Cap Rate 7%
$471,086
$471.1K
Cap Rate 9%
$366,400
$366.4K
Market Conditions
NOI Build-Up for 2,672 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
$56.4K $21.12/SF
− Vacancy
−$5.7K −$2.13/SF
EGI
$50.7K $18.99/SF
− OpEx
−$17.8K −$6.65/SF
NOI
$33.0K $12.34/SF
Area
Houghton County, MI
Vacancy
10.10%
Lease Rate
$21.12 /SF/Yr
Expense Ratio
35.00%
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%
$659,520
Cap Rate 7%
$471,086
Cap Rate 9%
$366,400
Alternative Uses
Best Use
Flex RnD
$471.1K
$412.2K – $549.6K
NOI $32,976 @ 7.0% cap · market cap 6.00%
Second Best
Warehouse
$262.5K
$229.7K – $306.3K
NOI $18,376 @ 7.0% cap · market cap 3.34%
Theoretical Best
Multifamily LT 5
$33.04M
$28.91M – $38.55M
NOI $2,312,718 @ 7.0% cap · market cap 420.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Turnkey business
Opportunity
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
3
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49916, MI
2,855
Population
1,788
Households
1.6
Avg Household Size
43
Median Age
39%
College-Educated
99%
High-School Grad
109.7 sq mi
ZIP Area
26
Density / Sq Mi
$77,000
Median Household Income
$39,591
Median Earnings
$770
Median Rent
$190,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial 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?
Flex space - Commercially zoned property combines office space, workshop areas, storage buildings, and outdoor storage improvements in a rural setting.
Where is this flex space located?
The property is located at 21220 Creamery Road Chassell, MI.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 3.56 acres of commercially zoned property in Chassell, MI; Main woodshop measures 36x60 with a 16x32 office addition; 32x44 clear‑span pole‑building warehouse with large sliding barn doors
