Renovated Single-Story Office
New
For Sale
$1,296,000
2935 Buchanan Avenue, Grand Rapids, MI 49548
Updated office property combines leased space with room for an owner occupant.
Property Size8,473 SF
Price / SF$156.96
Days on Market3
Property Features for 2935 Buchanan Avenue
General Information
Standard status
Active
Size
8,473 SF
Total Parking Spaces
25
Property subtype
Commercial
Zoning
Light Industria
Occupancy
100%
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$10,125
Building Details
Building Size
8,473 SF
Year Built
1984
Year Renovated
2017
Buildings
1
Stories
8473
Units
9
Tenancy
Multi
Listing Agency:
Greenridge Realty (Lowell)
(616) 897-9239
Listed By:
Todd M Pearson
Source:
Thebrokeragehouse
Added: Aug 16
Changed: Aug 17
Last Checked: Aug 17 at 10:02PM
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 Greenridge Realty (Lowell)
Investment Insights
Based on property information with market context.
This single-story office building contains 8,257 SF and was renovated in 2017. The property is divided into two functional portions: one is available for an owner occupant, while the other is leased to long-term tenants. Its office configuration and updated interior support continued commercial use.
Built in 1984, the building is located at 2935 Buchanan Avenue in Grand Rapids, Michigan, near downtown and the 131 expressway. The property is identified with Light Industria zoning, providing an established office asset with both existing tenancy and an owner-user component.
Built in 1984, the building is located at 2935 Buchanan Avenue in Grand Rapids, Michigan, near downtown and the 131 expressway. The property is identified with Light Industria zoning, providing an established office asset with both existing tenancy and an owner-user component.
Key Highlights
- 8,257 SF single‑story office building
- Renovated in 2017
- One portion available for an owner occupant
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
$77,174
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
5.95%
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%
$1,543,480
$1.5M
Cap Rate 7%
$1,102,486
$1.1M
Cap Rate 9%
$857,489
$857.5K
Market Conditions
NOI Build-Up for 8,257 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
$132.8K $16.08/SF
− Vacancy
−$29.9K −$3.62/SF
EGI
$102.9K $12.46/SF
− OpEx
−$25.7K −$3.12/SF
NOI
$77.2K $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%
$1,543,480
Cap Rate 7%
$1,102,486
Cap Rate 9%
$857,489
Alternative Uses
Best Use
Office B
$1.10M
$964.7K – $1.29M
NOI $77,174 @ 7.0% cap · market cap 5.95%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.92M
$1.68M – $2.24M
NOI $134,135 @ 7.0% cap · market cap 10.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
559
Businesses Nearby
Explore this area
Business Placement
Demographics for 49548, MI
34,741
Population
13,174
Households
2.6
Avg Household Size
34
Median Age
17%
College-Educated
86%
High-School Grad
10.8 sq mi
ZIP Area
3,217
Density / Sq Mi
$62,218
Median Household Income
$35,831
Median Earnings
$1,129
Median Rent
$149,500
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?
Office building - Updated office property combines leased space with room for an owner occupant.
Where is this office building located?
The property is located at 2935 Buchanan Avenue Grand Rapids, MI.
What is the asking price?
The asking price for this property is $1,296,000.
What are key features of this property?
This property features: 8,257 SF single‑story office building; Renovated in 2017; One portion available for an owner occupant
