Brick Office Building with
For Sale
$230,000
227 E State Street, Hanover, MI 49241
Commercial Sale, Hanover, MI
Property Size2,079 SF
Lot Size1.67 Acres
Price / SF$110.63
Days on Market144
Property Features for 227 E State Street
General Information
Property type
Commercial Sale
Property subtype
Office
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Elementary school district
Hanover-Horton
Middle school district
Hanover-Horton
High school district
Hanover-Horton
Standard status
Active
APN
000-17-28-126-002-00
Size
2,079 SF
Lot size
1.67 Acres
Taxes and HOA fees
Tax Year
2026
Tax Description
BEG AT A PT IN THE N LN OF SEC 28, 352 FT E OF THE INTERSECTION OF W 1/8 LN WITH THE N SEC LN TH E 275 FT TH S 297 FT TH
Tax Annual Amount
2840
Legal Description
BEG AT A PT IN THE N LN OF SEC 28, 352 FT E OF THE INTERSECTION OF W 1/8 LN WITH THE N SEC LN TH E 275 FT TH S 297 FT TH
Utilities
Utilities
Cable Available
Sewer type
Septic Tank
Heating system
Forced Air
Cooling system
Central Air
Water source
Well
Amenities
two-zone heating
newer roof
two bathrooms
functional kitchen area
Building Details
Year built
1960
Floors in Building
1
Number of units
1
Building materials
Brick
Roof type
Composition
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 782-2996
Listed By:
Jill Baker · License #6501437282
(517) 745-3114
Added: May 4
Changed: Sep 16
Last Checked: Sep 24 at 6:06PM
MLS# 26019750
Copyright © 2026 Michigan Regional Information Center, LLC. 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 2,079-square-foot brick office building was constructed in 1960 and offers a practical commercial layout with two bathrooms and a kitchen area. Building systems include forced-air heating, central air, a composition roof, and cable availability. A 10' x 16' storage shed adds separate on-site storage, while the surrounding 1.67-acre parcel provides substantial outdoor area.
The property is located at 227 E State Street in Hanover, Michigan, with well water and a septic tank serving the site. Its combination of interior space, accessory storage, and open land supports a range of commercial configurations, subject to applicable requirements.
The property is located at 227 E State Street in Hanover, Michigan, with well water and a septic tank serving the site. Its combination of interior space, accessory storage, and open land supports a range of commercial configurations, subject to applicable requirements.
Key Highlights
- 2,079 SF brick office building on 1.67 acres
- 10' x 16' storage shed included
- Two bathrooms and kitchen area
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
$17,424
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
7.58%
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%
$348,480
$348.5K
Cap Rate 7%
$248,914
$248.9K
Cap Rate 9%
$193,600
$193.6K
Market Conditions
NOI Build-Up for 2,079 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
$29.9K $14.40/SF
− Vacancy
−$6.7K −$3.23/SF
EGI
$23.2K $11.17/SF
− OpEx
−$5.8K −$2.79/SF
NOI
$17.4K $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%
$348,480
Cap Rate 7%
$248,914
Cap Rate 9%
$193,600
Alternative Uses
Best Use
Office B
$248.9K
$217.8K – $290.4K
NOI $17,424 @ 7.0% cap · market cap 7.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$331.9K
$290.4K – $387.2K
NOI $23,232 @ 7.0% cap · market cap 10.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
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
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office units - Flexible commercial building with two bathrooms, kitchen area, and outdoor space on a 1.67-acre parcel.
Where is this office units located?
The property is located at 227 E State Street Hanover, MI.
What is the asking price?
The asking price for this property is $230,000.
What are key features of this property?
This property features: 2,079 SF brick office building on 1.67 acres; 10' x 16' storage shed included; Two bathrooms and kitchen area
