Industrial Shop with Overhead
For Sale
$235,000
222 MERRITT AVE, Iron Mountain, MI 49801
Industrial building with two semi-truck-height overhead doors, shop space, office, and bathroom for flexible commercial use.
Property Size2,400 SF
Price / SF$97.92
Days on Market39
Property Features for 222 MERRITT AVE
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Industrial
Additional Details
Drive-In Doors
2
Amenities
3
Concrete
Metal
200108
Building Details
Year Built
1965
Listing Agency:
SELECT REALTY
(906) 282-8803
Listed By:
WILLIAM FAIRCHILD · License #6501449955
(906) 282-8803
Source:
Xome
Added: Jul 2
Changed: Aug 7
Last Checked: Aug 9 at 4:56AM
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 SELECT REALTY
Investment Insights
Based on property information with market context.
This versatile industrial/commercial building offers approximately 2,400 square feet of usable space designed around a spacious shop area. The layout includes two oversized semi-truck-height overhead doors for loading and access, along with an office and a bathroom to support day-to-day operations.
Located in Iron Mountain at 222 Merritt Avenue, the property is positioned to serve a range of commercial and industrial needs where larger vehicle access is important.
The configuration—combining heavy-duty overhead access with dedicated office and restroom space—can support a variety of service, maintenance, construction, and storage uses based on a tenant’s operational requirements.
Located in Iron Mountain at 222 Merritt Avenue, the property is positioned to serve a range of commercial and industrial needs where larger vehicle access is important.
The configuration—combining heavy-duty overhead access with dedicated office and restroom space—can support a variety of service, maintenance, construction, and storage uses based on a tenant’s operational requirements.
Key Highlights
- 2,400‑SF commercial/industrial building with spacious shop area, office, and bathroom
- Two oversized semi‑truck‑height overhead doors for loading and heavy‑vehicle access
- Metal roof
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
$14,334
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
6.10%
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%
$286,680
$286.7K
Cap Rate 7%
$204,771
$204.8K
Cap Rate 9%
$159,267
$159.3K
Market Conditions
NOI Build-Up for 2,400 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
$17.6K $7.35/SF
− Vacancy
−$776 −$0.32/SF
EGI
$16.9K $7.03/SF
− OpEx
−$2.5K −$1.05/SF
NOI
$14.3K $5.97/SF
Area
Dickinson County, MI
Vacancy
4.40%
Lease Rate
$7.35 /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%
$286,680
Cap Rate 7%
$204,771
Cap Rate 9%
$159,267
Alternative Uses
Best Use
Warehouse
$204.8K
$179.2K – $238.9K
NOI $14,334 @ 7.0% cap · market cap 6.10%
Second Best
Industrial
$169.9K
$148.6K – $198.2K
NOI $11,891 @ 7.0% cap · market cap 5.06%
Theoretical Best
Office A
$462.7K
$404.9K – $539.8K
NOI $32,390 @ 7.0% cap · market cap 13.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Drive-in doors
Location Intelligence
Trade Area within ½ mile
674
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Industrial building with two semi-truck-height overhead doors, shop space, office, and bathroom for flexible commercial use.
Where is this warehouse located?
The property is located at 222 MERRITT AVE Iron Mountain, MI.
What is the asking price?
The asking price for this property is $235,000.
What are key features of this property?
This property features: 2,400‑SF commercial/industrial building with spacious shop area, office, and bathroom; Two oversized semi‑truck‑height overhead doors for loading and heavy‑vehicle access; Metal roof
