Two-Unit Mixed-Use
For Sale
Contact for pricing
2535 5 MILE RD NE, Grand Rapids, MI 49525
Flexible commercial building with one leased unit, one available unit, parking, and an auxiliary storage garage.
Property Size2,240 SF
Price / SF$178.53
Days on Market18
Property Features for 2535 5 MILE RD NE
General Information
Standard status
Active
Size
2,240 SF
Class
C
Total Parking Spaces
20
Property subtype
Retail, Office, Mixed Use
Occupancy
50%
Lease Type
Modified Gross
Net Operating Income
$19,200
Additional Details
Asking Price
$399,900
Office Units
2
Amenities
garage for storage
Building Details
Year Built
1973
Buildings
1
Units
2
Tenancy
Multi
Listing Agency:
Baragar Realty
Listed By:
Jesse Baragar · License #6502431906
(616) 819-8879
Source:
Crexi
Added: Aug 17
Changed: Sep 1
Last Checked: Sep 1 at 8:33PM
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 Baragar Realty
Investment Insights
Based on property information with market context.
This 2,240-square-foot mixed-use commercial property contains two units with different occupancy profiles. One space is leased to a long-term tenant, while the other is vacant and available for a new occupant or owner use. The property also includes an additional garage that can provide storage, along with on-site parking and opportunities for business signage.
Built in 1973, the building is positioned near the Plainfield Avenue commercial corridor in Northeast Grand Rapids. Nearby surroundings include established businesses, residential neighborhoods, restaurants, shopping, and everyday services, with access throughout the area. The combination of an existing tenant, available space, and auxiliary storage supports flexible commercial use.
Built in 1973, the building is positioned near the Plainfield Avenue commercial corridor in Northeast Grand Rapids. Nearby surroundings include established businesses, residential neighborhoods, restaurants, shopping, and everyday services, with access throughout the area. The combination of an existing tenant, available space, and auxiliary storage supports flexible commercial use.
Key Highlights
- 2,240 SF mixed‑use commercial building
- Two‑unit layout with one long‑term tenant and one vacant unit
- Additional garage provides on‑site storage
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
$32,471
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
8.12%
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%
$649,420
$649.4K
Cap Rate 7%
$463,871
$463.9K
Cap Rate 9%
$360,789
$360.8K
Market Conditions
NOI Build-Up for 2,240 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
$49.2K $21.96/SF
− Vacancy
−$2.8K −$1.25/SF
EGI
$46.4K $20.71/SF
− OpEx
−$13.9K −$6.21/SF
NOI
$32.5K $14.50/SF
Area
Grand Rapids, MI
Vacancy
5.70%
Lease Rate
$21.96 /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%
$649,420
Cap Rate 7%
$463,871
Cap Rate 9%
$360,789
Alternative Uses
Best Use
Retail
$463.9K
$405.9K – $541.2K
NOI $32,471 @ 7.0% cap · market cap 8.12%
Second Best
Mixed Use
$353.3K
$309.1K – $412.2K
NOI $24,730 @ 7.0% cap · market cap 6.18%
Theoretical Best
Specialty Retail
$519.8K
$454.9K – $606.5K
NOI $36,389 @ 7.0% cap · market cap 9.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
365
Businesses Nearby
Explore this area
Business Placement
Demographics for 49525, MI
30,275
Population
12,577
Households
2.4
Avg Household Size
39
Median Age
49%
College-Educated
98%
High-School Grad
23.4 sq mi
ZIP Area
1,294
Density / Sq Mi
$87,969
Median Household Income
$45,740
Median Earnings
$1,335
Median Rent
$292,500
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?
Mixed-use property - Flexible commercial building with one leased unit, one available unit, parking, and an auxiliary storage garage.
Where is this mixed-use property located?
The property is located at 2535 5 MILE RD NE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: 2,240 SF mixed‑use commercial building; Two‑unit layout with one long‑term tenant and one vacant unit; Additional garage provides on‑site storage
