Cascade Office Park
For Sale
Contact for pricing
2600 Horizon Dr SE, Grand Rapids, MI 49546
30,857 SF office building in Cascade Office Park.
Property Size30,857 SF
Price / SF$124
Days on Market205
Property Features for 2600 Horizon Dr SE
General Information
Standard status
Active
Size
30,857 SF
Class
B
Property subtype
Office
Zoning
Commercial
Investment Type
Owner/User
Building Details
Year Built
1986
Buildings
1
Stories
2
Listing Agency:
Hinman
(269) 342-8600
Listed By:
Richard MacDonald · License #MI 6502139657
Source:
Crexi
Added: Jan 28
Changed: Aug 14
Last Checked: Aug 20 at 7:30PM
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 Hinman
Investment Insights
Based on property information with market context.
Located in the Cascade Office Park, this building offers 30,857 square feet of space across two floors. The layout includes a combination of open office areas and private offices. The property benefits from visibility on I-96 and provides convenient access to both 28th Street and Patterson Avenue, facilitating ease of entry and exit. Its location is near the I-96/28th Street interchange. A significant amount of parking is available.
Key Highlights
- Highly visible location on I‑96.
- Convenient access to both 28th St and Patterson Ave.
- Close proximity to the I‑96/28th St interchange.
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
$288,405
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
7.48%
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%
$5,768,100
$5.8M
Cap Rate 7%
$4,120,071
$4.1M
Cap Rate 9%
$3,204,500
$3.2M
Market Conditions
NOI Build-Up for 30,857 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
$496.2K $16.08/SF
− Vacancy
−$111.6K −$3.62/SF
EGI
$384.5K $12.46/SF
− OpEx
−$96.1K −$3.12/SF
NOI
$288.4K $9.35/SF
Area
Grand Rapids, MI
Vacancy
22.50%
Lease Rate
$16.08 /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%
$5,768,100
Cap Rate 7%
$4,120,071
Cap Rate 9%
$3,204,500
Alternative Uses
Best Use
Office B
$4.12M
$3.61M – $4.81M
NOI $288,405 @ 7.0% cap · market cap 7.48%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$7.16M
$6.27M – $8.35M
NOI $501,272 @ 7.0% cap · market cap 13.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
299
Businesses Nearby
Explore this area
Business Placement
Demographics for 49546, MI
35,536
Population
13,561
Households
2.6
Avg Household Size
38
Median Age
61%
College-Educated
96%
High-School Grad
17.9 sq mi
ZIP Area
1,985
Density / Sq Mi
$97,386
Median Household Income
$48,008
Median Earnings
$1,275
Median Rent
$389,100
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?
Office building - 30,857 SF office building in Cascade Office Park.
Where is this office building located?
The property is located at 2600 Horizon Dr SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $3,857,000.
What are key features of this property?
This property features: Highly visible location on I‑96.; Convenient access to both 28th St and Patterson Ave.; Close proximity to the I‑96/28th St interchange.
