Flex Space with Office and Bay
For Sale
$399,900
2655 W Ludington Drive, Farwell, MI 48622
COMMERCIAL - Farwell, MI
Property Size6,616 SF
Lot Size2.97 Acres
Price / SF$60.44
Days on Market325
Property Features for 2655 W Ludington Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Site Condominium
Subdivision
WOODLAND FOUNTAIN
Standard status
Active
Size
6,616 SF
Lot size
2.97 Acres
Utilities
Heating system
Forced Air
Water source
Private
Amenities
high speed fiber optic
Listing Agency:
REISS REAL ESTATE INC.
(989) 588-9621
Listed By:
ALAN REISS · License #6502123263
(989) 387-1409
Added: Sep 16, 2025
Changed: Aug 4
Last Checked: Aug 6 at 7:06PM
MLS# 50189147
Copyright © 2026 Clare Gladwin Board of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex space in Farwell, Michigan includes an office/business center totaling 2,774 SF, along with additional 3,776+ SF of bay garages. The property also features an additional bay with a hoist and a lean-to shed, offering a practical mix of office and service/garage space. Forced air heating is in place, and private water is listed as the water source.
The site sits on 2.97 acres and is described as having easy access to major roads, with high-speed fiber optic available. Immediate possession is noted.
The property is currently tax exempt, and prospective users are directed to check with the Surrey Township Zoning Administrator to confirm permitted use. Showings are available by advance appointment only.
The site sits on 2.97 acres and is described as having easy access to major roads, with high-speed fiber optic available. Immediate possession is noted.
The property is currently tax exempt, and prospective users are directed to check with the Surrey Township Zoning Administrator to confirm permitted use. Showings are available by advance appointment only.
Key Highlights
- 2.97‑acre site with flex configuration of office and bay garages
- Office/business center totaling 2,774 SF
- Bay garages totaling 3,776+ SF
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
$32,178
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
8.05%
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%
$643,560
$643.6K
Cap Rate 7%
$459,686
$459.7K
Cap Rate 9%
$357,533
$357.5K
Market Conditions
NOI Build-Up for 6,616 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
$48.4K $7.32/SF
− Vacancy
−$2.5K −$0.37/SF
EGI
$46.0K $6.95/SF
− OpEx
−$13.8K −$2.08/SF
NOI
$32.2K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$643,560
Cap Rate 7%
$459,686
Cap Rate 9%
$357,533
Alternative Uses
Best Use
Office B
$957.5K
$837.8K – $1.12M
NOI $67,026 @ 7.0% cap · market cap 16.76%
Second Best
Flex RnD
$678.2K
$593.5K – $791.3K
NOI $47,476 @ 7.0% cap · market cap 11.87%
Theoretical Best
Office A
$1.46M
$1.28M – $1.70M
NOI $102,166 @ 7.0% cap · market cap 25.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
29
Businesses Nearby
Explore this area
Business Placement
Demographics for 48622, MI
6,364
Population
3,213
Households
2
Avg Household Size
47
Median Age
18%
College-Educated
93%
High-School Grad
86.1 sq mi
ZIP Area
74
Density / Sq Mi
$57,500
Median Household Income
$36,019
Median Earnings
$754
Median Rent
$123,600
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?
Flex space - Flex space with an office/business center, bay garages, an additional hoist bay, and high-speed fiber optic available.
Where is this flex space located?
The property is located at 2655 W Ludington Drive Farwell, 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: 2.97‑acre site with flex configuration of office and bay garages; Office/business center totaling 2,774 SF; Bay garages totaling 3,776+ SF
