Building Details

Year Built 2023

Tenancy Multi

Listing Agency: Cushman & Wakefield CRESCO Real Estate Show Phone

Listed By: Eliot Kijewski · License #OH SAL.2003003809

Source: Crexi

Added: Feb 7 Changed: Aug 8 Last Checked: Aug 11 at 11:40AM

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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 Cushman & Wakefield CRESCO Real Estate

Investment Insights

Based on property information with market context.

This commercial property offers approximately 4,200 square feet of retail space in a location near industrial, residential, and commercial zones. The property provides convenient access to both I-480 and I-271. Zoned B1 - Local, the site is suitable for quasi-retail use. The 9,802 square foot property presents an opportunity for a partial owner-user, benefiting from existing cash flow due to a long-term lease with a high-credit tenant already in place.

Key Highlights

• Excellent location with easy access to I‑480 and I‑271.
• Opportunity for a partial owner‑user with existing cash flow.
• High‑credit tenant already in place.

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

$93,658

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

6.24%

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%

$1,873,160 $1.9M

Cap Rate 7%

$1,337,971 $1.3M

Cap Rate 9%

$1,040,644 $1.0M

Market Conditions

NOI Build-Up for 9,802 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

$147.0K $15.00/SF

− Vacancy

−$13.2K −$1.35/SF

EGI

$133.8K $13.65/SF

− OpEx

−$40.1K −$4.10/SF

NOI

$93.7K $9.56/SF

Area

Cuyahoga County, OH

Vacancy

9.00%

Lease Rate

$15.00 /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%

$1,873,160

Cap Rate 7%

$1,337,971

Cap Rate 9%

$1,040,644

Alternative Uses

Best Use

Retail

$1.34M

$1.17M – $1.56M (±1% cap)

NOI $93,658 @ 7.0% cap · market cap 6.24%

Second Best

—

—

no second resolved use

Theoretical Best

Warehouse

$7.85M

$6.87M – $9.16M (±1% cap)

NOI $549,765 @ 7.0% cap · market cap 36.65%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Parking Lot & Garage Dental Office (Bike/Boat/Book/etc) Store Grocery & Convenience Store Plumbing Service Furniture & Home Goods

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

302

Businesses Nearby

Explore this area Business Placement

Demographics for 44146, OH

29,778

Population

15,270

Households

2

Avg Household Size

46

Median Age

23%

College-Educated

92%

High-School Grad

20.0 sq mi

ZIP Area

1,489

Density / Sq Mi

$53,049

Median Household Income

$40,808

Median Earnings

$1,000

Median Rent

$141,800

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this retail space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Retail space - Retail space with existing tenant, close to major highways.

Where is this retail space located?

The property is located at 23360 Michelle Dr Bedford Heights, OH.

What is the asking price?

The asking price for this property is $1,500,000.

What are key features of this property?

This property features: Excellent location with easy access to I‑480 and I‑271.; Opportunity for a partial owner‑user with existing cash flow.; High‑credit tenant already in place.