Updated Flex Space With
For Sale
$475,000
2768 W Carleton Rd, Hillsdale, MI 49242
Recently updated commercial space combines private offices, bathrooms, and a garage for flexible operations.
Property Size2,500 SF
Price / SF$188.49
Days on Market23
Property Features for 2768 W Carleton Rd
General Information
Standard status
Active
Size
2,500 SF
Taxes and HOA fees
Annual Taxes
$3,708
Amenities
3 private offices
3 bathrooms
3.5 bay garage with water hookup
Building Details
Buildings
1
Building Size
2,500 SF
Listing Agency:
RE/MAX Dream Properties
(248) 374-7700
Listed By:
Robert Rech · License #6501400572
(248) 374-7700
Source:
Exprealty
Added: Jul 29
Changed: Aug 20
Last Checked: Aug 20 at 1:22PM
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 RE/MAX Dream Properties
Investment Insights
Based on property information with market context.
This 2,520-square-foot flex property at 2768 W Carleton Rd in Hillsdale, MI, includes three private offices, three bathrooms, and a 3.5-bay garage. The garage has a water hookup, while the main building has been recently updated. An elevated site adds physical distinction to the property, and the combination of office areas and garage space supports a range of commercial configurations. The building’s layout offers dedicated office rooms alongside substantial vehicle or equipment storage space, with the garage and water connection serving as notable operational features.
Key Highlights
- 2,520‑square‑foot flex property
- Three private offices and three bathrooms
- 3.5‑bay garage with water hookup
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
$21,827
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
4.60%
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%
$436,540
$436.5K
Cap Rate 7%
$311,814
$311.8K
Cap Rate 9%
$242,522
$242.5K
Market Conditions
NOI Build-Up for 2,520 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
$36.3K $14.40/SF
− Vacancy
−$7.2K −$2.85/SF
EGI
$29.1K $11.55/SF
− OpEx
−$7.3K −$2.89/SF
NOI
$21.8K $8.66/SF
Area
Hillsdale County, MI
Vacancy
19.80%
Lease Rate
$14.40 /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%
$436,540
Cap Rate 7%
$311,814
Cap Rate 9%
$242,522
Alternative Uses
Best Use
Office B
$311.8K
$272.8K – $363.8K
NOI $21,827 @ 7.0% cap · market cap 4.60%
Second Best
Flex RnD
$302.3K
$264.5K – $352.6K
NOI $21,158 @ 7.0% cap · market cap 4.45%
Theoretical Best
Specialty Retail
$400.4K
$350.4K – $467.1K
NOI $28,028 @ 7.0% cap · market cap 5.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
289
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49242, MI
14,812
Population
6,687
Households
2.2
Avg Household Size
38
Median Age
25%
College-Educated
93%
High-School Grad
90.6 sq mi
ZIP Area
163
Density / Sq Mi
$57,813
Median Household Income
$28,886
Median Earnings
$770
Median Rent
$182,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Cascades Urology — 240 W Carleton Rd, Hillsdale, MI 49242
- Hillsdale College Dining — Central Hall, 33 E College St, Hillsdale, MI 49242
Frequently Asked Questions
What type of property is this?
Flex space - Recently updated commercial space combines private offices, bathrooms, and a garage for flexible operations.
Where is this flex space located?
The property is located at 2768 W Carleton Rd Hillsdale, MI.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 2,520‑square‑foot flex property; Three private offices and three bathrooms; 3.5‑bay garage with water hookup
