Renovated Medical Office
New
For Sale
$1,500,000
2532 Spring Arbor Rd, Jackson, MI 49203
Multi-suite space includes existing NNN leases and additional area available for occupancy or leasing.
Property Size5,762 SF
Lot Size1.21 Acres
Price / SF$260.33
Days on Market2
Property Features for 2532 Spring Arbor Rd
General Information
Standard status
Active
Size
5,762 SF
Lot size
1.21 Acres
Zoning
O-1
Additional Details
Cap Rate
5.9%
Road Access
Yes
Building Details
Year Built
1964
Tenancy
Multi
Listing Agency:
Coldwell Banker Groves Real Estate
Listed By:
Timothy Groves, Sherri Groves
Source:
Katie-k
Added: Sep 24
Last Checked: Sep 24 at 2:55PM
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 Coldwell Banker Groves Real Estate
Investment Insights
Based on property information with market context.
This renovated medical and professional office property contains 5,762 square feet in a multi-suite layout. Built in 1964, the building sits on approximately 1.21 acres and is zoned O-1. Existing triple-net leases are in place, with additional space available for leasing or owner occupancy.
The property has direct access from Spring Arbor Road and an on-site parking lot designated for patients, clients, and staff. Existing leases support a 5.9% cap rate, with an 8.1% cap rate projected at full capacity. Brownfield benefits are also associated with the property; terms and transferability are subject to verification with Summit Township.
The property has direct access from Spring Arbor Road and an on-site parking lot designated for patients, clients, and staff. Existing leases support a 5.9% cap rate, with an 8.1% cap rate projected at full capacity. Brownfield benefits are also associated with the property; terms and transferability are subject to verification with Summit Township.
Key Highlights
- 5,762‑square‑foot medical and professional office property
- Approximately 1.21 acres; zoned O‑1
- Multi‑suite building with existing triple‑net leases and additional space available
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
$52,636
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
3.51%
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%
$1,052,720
$1.1M
Cap Rate 7%
$751,943
$751.9K
Cap Rate 9%
$584,844
$584.8K
Market Conditions
NOI Build-Up for 5,762 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
$100.3K $17.40/SF
− Vacancy
−$12.5K −$2.18/SF
EGI
$87.7K $15.22/SF
− OpEx
−$35.1K −$6.09/SF
NOI
$52.6K $9.13/SF
Area
Jackson County, MI
Vacancy
12.50%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
40.00%
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%
$1,052,720
Cap Rate 7%
$751,943
Cap Rate 9%
$584,844
Alternative Uses
Best Use
Healthcare Medical
$751.9K
$658.0K – $877.3K
NOI $52,636 @ 7.0% cap · market cap 3.51%
Second Best
Office B
$689.9K
$603.6K – $804.8K
NOI $48,290 @ 7.0% cap · market cap 3.22%
Theoretical Best
Office A
$919.8K
$804.8K – $1.07M
NOI $64,387 @ 7.0% cap · market cap 4.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
308
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49203, MI
37,269
Population
16,999
Households
2.2
Avg Household Size
39
Median Age
23%
College-Educated
93%
High-School Grad
26.5 sq mi
ZIP Area
1,406
Density / Sq Mi
$55,689
Median Household Income
$37,096
Median Earnings
$992
Median Rent
$150,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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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?
Medical Office Space - Multi-suite space includes existing NNN leases and additional area available for occupancy or leasing.
Where is this medical office space located?
The property is located at 2532 Spring Arbor Rd Jackson, MI.
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: 5,762‑square‑foot medical and professional office property; Approximately 1.21 acres; zoned O‑1; Multi‑suite building with existing triple‑net leases and additional space available
