Turnkey Commercial Opportunity in
For Sale
$259,000
227 E State St, Hanover, MI 49241
Well-maintained commercial building with versatile space on a generous lot.
Property Size2,000 SF
Lot Size1.50 Acres
Price / SF$129.50
Days on Market106
Property Features for 227 E State St
General Information
Standard status
Active
Size
2,000 SF
Lot size
1.50 Acres
Property subtype
Commercial
Building Details
Year Built
1960
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 745-3114
Listed By:
Jill Baker · License #6501437282
(517) 745-3114
Source:
Elliman
Added: May 9
Changed: Jul 10
Last Checked: Aug 21 at 12:27PM
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 well-maintained building in Hanover offers over 2,000 sq ft of versatile space on a generous 1.5+ acre lot. It is move-in ready and features two-zone heating, a newer roof, two bathrooms, and a functional kitchen area. A newer 10' x 16' storage shed provides additional on-site storage. The property is ideal for a wide range of uses including professional office, retail, fitness studio, daycare, or service-based business. Ample outdoor space offers flexibility for parking, expansion, or outdoor programming. The location offers high-visibility with convenient access, making it a strong option for owner-operators or investors.
Key Highlights
- Turnkey, move‑in ready commercial building.
- Over 2,000 sq ft of versatile space on 1.5+ acre lot.
- High‑visibility location with convenient access.
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
$16,762
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
6.47%
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%
$335,240
$335.2K
Cap Rate 7%
$239,457
$239.5K
Cap Rate 9%
$186,244
$186.2K
Market Conditions
NOI Build-Up for 2,000 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
$28.8K $14.40/SF
− Vacancy
−$6.5K −$3.23/SF
EGI
$22.3K $11.17/SF
− OpEx
−$5.6K −$2.79/SF
NOI
$16.8K $8.38/SF
Area
Jackson County, MI
Vacancy
22.40%
Lease Rate
$14.40 /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%
$335,240
Cap Rate 7%
$239,457
Cap Rate 9%
$186,244
Alternative Uses
Best Use
Office B
$239.5K
$209.5K – $279.4K
NOI $16,762 @ 7.0% cap · market cap 6.47%
Second Best
Retail
$197.0K
$172.4K – $229.9K
NOI $13,793 @ 7.0% cap · market cap 5.33%
Theoretical Best
Office A
$319.3K
$279.4K – $372.5K
NOI $22,349 @ 7.0% cap · market cap 8.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
Explore this area
Business Placement
Demographics for 49241, MI
2,359
Population
915
Households
2.6
Avg Household Size
40
Median Age
25%
College-Educated
92%
High-School Grad
32.0 sq mi
ZIP Area
74
Density / Sq Mi
$81,471
Median Household Income
$37,245
Median Earnings
$1,031
Median Rent
$223,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Well-maintained commercial building with versatile space on a generous lot.
Where is this office units located?
The property is located at 227 E State St Hanover, MI.
What is the asking price?
The asking price for this property is $259,000.
What are key features of this property?
This property features: Turnkey, move‑in ready commercial building.; Over 2,000 sq ft of versatile space on 1.5+ acre lot.; High‑visibility location with convenient access.
