Leased Office
New
For Sale
$549,500
2914 Blue Star Highway, Douglas, MI 49406
Commercial Sale, Douglas, MI
Property Size2,812 SF
Lot Size0.65 Acres
Price / SF$195.41
Days on Market5
Property Features for 2914 Blue Star Highway
General Information
Property type
Commercial Sale
Property subtype
Office
Bathrooms
4
Full bathrooms
4
Rooms
Bathroom 2, Bathroom 1, Bathroom 3, Bathroom 4
Parking
15
Interior features
Broadband
Elementary school district
Saugatuck-Douglas
Middle school district
Saugatuck-Douglas
High school district
Saugatuck-Douglas
Directions
Blue Star Hwy just north of I-196 exit 36
Standard status
Active
APN
59-020-008-00
Size
2,812 SF
Lot size
0.65 Acres
Taxes and HOA fees
Tax Year
2026
Tax Description
N 100' OF S 341' OF E 290.5' OF NE 1/4 SEC 20 T3N R16W TAX MAP: 0.64 AC (94)
Tax Annual Amount
7801
Legal Description
N 100' OF S 341' OF E 290.5' OF NE 1/4 SEC 20 T3N R16W TAX MAP: 0.64 AC (94)
Utilities
Heating system
Baseboard, Forced Air
Cooling system
Central Air
Water source
Well
Amenities
kitchen
bathrooms
wet bar
coffee station
storage building
Building Details
Year built
1995
Number of units
2
Building materials
Wood Siding
Roof type
Composition
Listing Agency:
RE/MAX Saugatuck-Douglas · RE/MAX International
(269) 857-2191
Listed By:
Richard P Waskin · License #6502106649
(616) 218-3191
Added: Sep 21
Last Checked: Sep 25 at 2:06AM
MLS# 26050202
Copyright © 2026 Michigan Regional Information Center, LLC. 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 2,812-square-foot office building in Douglas was constructed in 1995 and is currently fully leased. The property is arranged as two units with separately metered electric service. Unit A includes a kitchen and 2.5 bathrooms, while Unit B offers a wet bar and coffee station, one-half bathroom, and a recent interior remodel. A rear storage building is included, along with baseboard and forced-air heating, central air conditioning, broadband, wood siding, and a composition roof.
The property is positioned at the entrance to town along Blue Star Highway. An adjacent parking easement measuring 30 feet by 290 feet provides additional parking area. Current lease terms include a two-year real estate office lease and a one-year photography studio lease that is negotiable.
The property is positioned at the entrance to town along Blue Star Highway. An adjacent parking easement measuring 30 feet by 290 feet provides additional parking area. Current lease terms include a two-year real estate office lease and a one-year photography studio lease that is negotiable.
Key Highlights
- 2,812 SF office building on 0.65 acres
- Fully leased with a two‑year real estate office lease
- Separate electric meters for each unit
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
$30,978
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
5.64%
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%
$619,560
$619.6K
Cap Rate 7%
$442,543
$442.5K
Cap Rate 9%
$344,200
$344.2K
Market Conditions
NOI Build-Up for 2,812 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
$47.9K $17.04/SF
− Vacancy
−$6.6K −$2.35/SF
EGI
$41.3K $14.69/SF
− OpEx
−$10.3K −$3.67/SF
NOI
$31.0K $11.02/SF
Area
Allegan County, MI
Vacancy
13.80%
Lease Rate
$17.04 /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%
$619,560
Cap Rate 7%
$442,543
Cap Rate 9%
$344,200
Alternative Uses
Best Use
Office B
$442.5K
$387.2K – $516.3K
NOI $30,978 @ 7.0% cap · market cap 5.64%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$26.41M
$23.11M – $30.81M
NOI $1,848,531 @ 7.0% cap · market cap 336.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
80
Businesses Nearby
Explore this area
Business Placement
Demographics for 49406, MI
1,031
Population
921
Households
1.1
Avg Household Size
60
Median Age
66%
College-Educated
99%
High-School Grad
1.5 sq mi
ZIP Area
687
Density / Sq Mi
$95,417
Median Household Income
$78,333
Median Earnings
$470,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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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 - Two office units feature separate electric meters, dedicated wet-bar service, and flexible interior amenities.
Where is this office building located?
The property is located at 2914 Blue Star Highway Douglas, MI.
What is the asking price?
The asking price for this property is $549,500.
What are key features of this property?
This property features: 2,812 SF office building on 0.65 acres; Fully leased with a two‑year real estate office lease; Separate electric meters for each unit
