Renovated Office
For Sale
$1,296,000
2935 Buchanan Ave SW, Grand Rapids, MI 49548
Single-story office property near downtown and the 131 expressway.
Property Size8,473 SF
Price / SF$152.96
Days on Market9
Property Features for 2935 Buchanan Ave SW
General Information
Standard status
Active
Size
8,473 SF
Building Details
Year Built
1984
Listing Agency:
Greenridge Realty (Lowell)
(616) 717-8220
Listed By:
Todd M Pearson
Source:
Katie-k
Added: Aug 23
Changed: Aug 30
Last Checked: Aug 30 at 8:04PM
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 was constructed in 1984 and renovated in 2017. The property includes updated office interiors and a layout divided between an owner-occupant opportunity and a separately leased portion. One half is available for an owner occupant, while the other half is occupied by long-term tenants, creating a combination of operational use and existing tenancy within the same building.
The property is located at 2935 Buchanan Ave SW in Grand Rapids, near downtown and the 131 expressway. Its updated interior and modernized building systems support continued office use, while the two-part configuration provides flexibility for an owner-user seeking on-site occupancy alongside an established leased component.
The property is located at 2935 Buchanan Ave SW in Grand Rapids, near downtown and the 131 expressway. Its updated interior and modernized building systems support continued office use, while the two-part configuration provides flexibility for an owner-user seeking on-site occupancy alongside an established leased component.
Key Highlights
- Renovated in 2017 with updated office interiors
- Single‑story commercial office building constructed in 1984
- One half 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
$79,193
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
6.11%
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%
$1,583,860
$1.6M
Cap Rate 7%
$1,131,329
$1.1M
Cap Rate 9%
$879,922
$879.9K
Market Conditions
NOI Build-Up for 8,473 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
$136.2K $16.08/SF
− Vacancy
−$30.7K −$3.62/SF
EGI
$105.6K $12.46/SF
− OpEx
−$26.4K −$3.12/SF
NOI
$79.2K $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%
$1,583,860
Cap Rate 7%
$1,131,329
Cap Rate 9%
$879,922
Alternative Uses
Best Use
Office B
$1.13M
$989.9K – $1.32M
NOI $79,193 @ 7.0% cap · market cap 6.11%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.97M
$1.72M – $2.29M
NOI $137,644 @ 7.0% cap · market cap 10.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
497
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 - Single-story office property near downtown and the 131 expressway.
Where is this office building located?
The property is located at 2935 Buchanan Ave SW 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: Renovated in 2017 with updated office interiors; Single‑story commercial office building constructed in 1984; One half available for an owner occupant
