Auto Shop with Self-Storage
For Sale
$435,000
2511 Parma Road, Parma, MI 49269
Two commercial improvements provide automotive work space alongside supplemental storage near the I-94 interchange.
Property Size4,800 SF
Lot Size2.11 Acres
Price / SF$90.63
Days on Market27
Property Features for 2511 Parma Road
General Information
Standard status
Active
Size
4,800 SF
Lot size
2.11 Acres
Property subtype
Business Opportunities
Site & Location
Highway Access
Yes
Outdoor Storage
Yes
Additional Details
Service Bays
3
Taxes and HOA fees
Annual Taxes
$5,272
Amenities
Metal, Composition
618x140
Paved Road.
Building Details
Year Built
1993
Buildings
2
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 204-4385
Listed By:
PHILLIP MORGAN · License #6502108104
(517) 204-4385
Source:
Xome
Added: Aug 4
Changed: Aug 29
Last Checked: Aug 24 at 3:00AM
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.
The property combines a former automotive repair facility with an 18-unit self-storage building on 2.11 acres. The repair component includes three service bays and two vehicle pits, supporting automotive repair, fleet maintenance, or equipment service uses. The site also offers space associated with parking and outdoor storage, with room identified for future expansion.
Located seconds from the I-94 interchange, the property provides direct transportation access for operations serving Jackson, Battle Creek, Ann Arbor, and the surrounding region. The combination of automotive service infrastructure and self-storage creates a flexible commercial configuration for an owner-user or investor.
Located seconds from the I-94 interchange, the property provides direct transportation access for operations serving Jackson, Battle Creek, Ann Arbor, and the surrounding region. The combination of automotive service infrastructure and self-storage creates a flexible commercial configuration for an owner-user or investor.
Key Highlights
- 2.11‑acre commercial property near the I‑94 interchange
- Former automotive repair facility with 3 service bays
- 2 vehicle pits included in the automotive service 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
$33,348
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
7.67%
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%
$666,960
$667.0K
Cap Rate 7%
$476,400
$476.4K
Cap Rate 9%
$370,533
$370.5K
Market Conditions
NOI Build-Up for 4,800 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
$53.0K $11.04/SF
− Vacancy
−$5.4K −$1.12/SF
EGI
$47.6K $9.92/SF
− OpEx
−$14.3K −$2.98/SF
NOI
$33.3K $6.95/SF
Area
Jackson County, MI
Vacancy
10.10%
Lease Rate
$11.04 /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%
$666,960
Cap Rate 7%
$476,400
Cap Rate 9%
$370,533
Alternative Uses
Best Use
Self Storage
$608.3K
$532.2K – $709.6K
NOI $42,578 @ 7.0% cap · market cap 9.79%
Second Best
Warehouse
$578.5K
$506.2K – $674.9K
NOI $40,494 @ 7.0% cap · market cap 9.31%
Theoretical Best
Office A
$766.2K
$670.5K – $894.0K
NOI $53,637 @ 7.0% cap · market cap 12.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Service bays
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
8
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49269, MI
5,874
Population
2,083
Households
2.8
Avg Household Size
42
Median Age
20%
College-Educated
92%
High-School Grad
55.8 sq mi
ZIP Area
105
Density / Sq Mi
$83,933
Median Household Income
$50,372
Median Earnings
$967
Median Rent
$200,100
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?
Auto shop - Two commercial improvements provide automotive work space alongside supplemental storage near the I-94 interchange.
Where is this auto shop located?
The property is located at 2511 Parma Road Parma, MI.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: 2.11‑acre commercial property near the I‑94 interchange; Former automotive repair facility with 3 service bays; 2 vehicle pits included in the automotive service area
