Three-Level Office
For Sale
$524,900
2226 W Michigan St, Indianapolis, IN 46222
Main-thoroughfare office property with conference rooms, multiple private offices, kitchenette, and finished lower-level space.
Property Size3,008 SF
Price / SF$174.50
Days on Market129
Property Features for 2226 W Michigan St
General Information
Standard status
Active
Size
3,008 SF
Additional Details
Road Access
Yes
Building Details
Year Built
1939
Buildings
1
Listing Agency:
Keller Williams Indy Metro NE
(317) 373-7973
Listed By:
Rochelle McDaniels · License #RB15000235
Source:
Mcwatersrealestate
Added: Apr 24
Changed: Aug 30
Last Checked: Aug 25 at 5:07AM
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 Keller Williams Indy Metro NE
Investment Insights
Based on property information with market context.
This 3,008 SF office building is arranged across a main level, upper level, and finished lower level. The main floor includes a conference room, work room, kitchenette, secretary area, restroom, and five offices. The upper floor adds another conference room or corporate office, six offices, and two restrooms. The lower level provides several large finished areas for additional office or support functions.
Recent property improvements include a new roof and an Everdry-sealed lower level. The property also includes a strip of land across from the alley that was intended for additional parking spaces. Its location on a main thoroughfare places it minutes from Downtown, Eskenazi, Riley, IU hospitals, and the IU Indianapolis and Purdue Indianapolis campuses. Previous building uses included a dental office and beauty salon.
Recent property improvements include a new roof and an Everdry-sealed lower level. The property also includes a strip of land across from the alley that was intended for additional parking spaces. Its location on a main thoroughfare places it minutes from Downtown, Eskenazi, Riley, IU hospitals, and the IU Indianapolis and Purdue Indianapolis campuses. Previous building uses included a dental office and beauty salon.
Key Highlights
- 3,008 SF office building arranged across main, upper, and finished lower levels
- Main level includes five offices, conference room, work room, kitchenette, secretary area, and restroom
- Upper level provides six offices, a conference room or corporate office, and two restrooms
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
$39,715
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
7.57%
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%
$794,300
$794.3K
Cap Rate 7%
$567,357
$567.4K
Cap Rate 9%
$441,278
$441.3K
Market Conditions
NOI Build-Up for 3,008 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
$65.0K $21.60/SF
− Vacancy
−$12.0K −$4.00/SF
EGI
$53.0K $17.60/SF
− OpEx
−$13.2K −$4.40/SF
NOI
$39.7K $13.20/SF
Area
Indianapolis, IN
Vacancy
18.50%
Lease Rate
$21.60 /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%
$794,300
Cap Rate 7%
$567,357
Cap Rate 9%
$441,278
Alternative Uses
Best Use
Office B
$567.4K
$496.4K – $661.9K
NOI $39,715 @ 7.0% cap · market cap 7.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$748.7K
$655.1K – $873.5K
NOI $52,411 @ 7.0% cap · market cap 9.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
540
Businesses Nearby
Explore this area
Business Placement
Demographics for 46222, IN
37,185
Population
15,782
Households
2.4
Avg Household Size
31
Median Age
17%
College-Educated
78%
High-School Grad
11.0 sq mi
ZIP Area
3,380
Density / Sq Mi
$45,198
Median Household Income
$30,548
Median Earnings
$1,050
Median Rent
$104,300
Median Home Value
Market
Vacancy Rate% for Office in Indianapolis, IN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Main-thoroughfare office property with conference rooms, multiple private offices, kitchenette, and finished lower-level space.
Where is this office building located?
The property is located at 2226 W Michigan St Indianapolis, IN.
What is the asking price?
The asking price for this property is $524,900.
What are key features of this property?
This property features: 3,008 SF office building arranged across main, upper, and finished lower levels; Main level includes five offices, conference room, work room, kitchenette, secretary area, and restroom; Upper level provides six offices, a conference room or corporate office, and two restrooms
