Retail Space on Kalamazoo
For Sale
$375,000
217 S Kalamazoo Mall, Kalamazoo, MI 49007
Retail space in downtown Kalamazoo with high foot traffic.
Property Size1,982 SF
Price / SF$189.20
Days on Market120
Property Features for 217 S Kalamazoo Mall
General Information
Standard status
Active
Size
1,982 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$7,712
Building Details
Year Built
1937
Units
1
Listing Agency:
NAI Wisinski of West Michigan
(269) 370-6437
Listed By:
Connor Schultze · License #6506044331
(269) 370-6437
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 21 at 10:41AM
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 property offers 1,982 square feet of retail space situated on South Kalamazoo Mall, a prominent commercial area within the city. The layout is open and ready for immediate occupancy. An additional 1,200 square feet in the lower level can be utilized for storage or operational purposes. The location benefits from high visibility, significant pedestrian traffic, and convenient parking options. Positioned in downtown Kalamazoo, the property is surrounded by established retail businesses, creative office spaces, and new residential developments. A nearby arena project, valued at over $550 million and currently under construction, is expected to attract thousands of visitors annually, serving as the new venue for WMU hockey and other major events.
Key Highlights
- Prime location on South Kalamazoo Mall, a highly active commercial corridor.
- Move‑in ready, open layout with 1,982 SF of retail space.
- Additional 1,200 SF lower level for storage or operational use.
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
$13,669
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
3.65%
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%
$273,380
$273.4K
Cap Rate 7%
$195,271
$195.3K
Cap Rate 9%
$151,878
$151.9K
Market Conditions
NOI Build-Up for 1,982 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
$23.8K $12.00/SF
− Vacancy
−$4.3K −$2.15/SF
EGI
$19.5K $9.85/SF
− OpEx
−$5.9K −$2.96/SF
NOI
$13.7K $6.90/SF
Area
Kalamazoo County, MI
Vacancy
17.90%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$273,380
Cap Rate 7%
$195,271
Cap Rate 9%
$151,878
Alternative Uses
Best Use
Retail
$195.3K
$170.9K – $227.8K
NOI $13,669 @ 7.0% cap · market cap 3.65%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$518.6K
$453.8K – $605.1K
NOI $36,305 @ 7.0% cap · market cap 9.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,165
Businesses Nearby
62k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 44%
Shops & Services 41%
Hotels & Casinos 12%
Electronics 2%
McDonald's
Dining
15,871 visits/mo
0.3 miles
Shell
Shops & Services
13,648 visits/mo
0.4 miles
Checkers
Dining
6,149 visits/mo
0.5 miles
Barrio Tacos
Dining
4,643 visits/mo
0.1 miles
Family Dollar
Shops & Services
4,370 visits/mo
0.5 miles
Demographics for 49007, MI
10,353
Population
5,102
Households
2
Avg Household Size
31
Median Age
24%
College-Educated
84%
High-School Grad
3.5 sq mi
ZIP Area
2,958
Density / Sq Mi
$39,309
Median Household Income
$24,723
Median Earnings
$1,017
Median Rent
$103,400
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail space in downtown Kalamazoo with high foot traffic.
Where is this retail space located?
The property is located at 217 S Kalamazoo Mall Kalamazoo, MI.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Prime location on South Kalamazoo Mall, a highly active commercial corridor.; Move‑in ready, open layout with **1,982 SF of retail space.**; Additional 1,200 SF lower level for storage or operational use.
