Division Avenue Office/Mixed-Use
For Sale
Contact for pricing
2945 S Division Ave, Grand Rapids, MI 49548
Office or mixed-use building on busy Division Avenue.
Property Size2,298 SF
Price / SF$171.89
Days on Market1428
Property Features for 2945 S Division Ave
General Information
Standard status
Active
Size
2,298 SF
Class
C
Property subtype
Office
Zoning
FBC-CG
Lease Type
NNN
Building Details
Year Built
1995
Buildings
1
Stories
2
Tenancy
Single
Listing Agency:
Signature Associates
(616) 235-0900
Listed By:
Joe Rizqallah · License #MI
Source:
Crexi
Added: Sep 16, 2022
Changed: Aug 8
Last Checked: May 12 at 8:47PM
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 Signature Associates
Investment Insights
Based on property information with market context.
This 2,298-square-foot building is suitable for office or mixed-use purposes. Located on Division Avenue, it is just off 28th Street and less than a half mile from US-131. The property includes a garage and ample on-site parking. It offers frontage suitable for various uses, including office, mixed-use, work/live opportunities, cafes, non-traditional retailers, salons, insurance agencies, and more.
Key Highlights
- Prime location on busy Division Avenue, just off 28th Street and near US‑131.
- Versatile zoning suitable for office, mix‑use, work/live, cafe, retail, salon, insurance, and more.
- Garage included with the property.
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
$25,370
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
6.42%
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%
$507,400
$507.4K
Cap Rate 7%
$362,429
$362.4K
Cap Rate 9%
$281,889
$281.9K
Market Conditions
NOI Build-Up for 2,298 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
$44.1K $19.20/SF
− Vacancy
−$3.5K −$1.54/SF
EGI
$40.6K $17.66/SF
− OpEx
−$15.2K −$6.62/SF
NOI
$25.4K $11.04/SF
Area
Grand Rapids, MI
Vacancy
8.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
37.50%
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%
$507,400
Cap Rate 7%
$362,429
Cap Rate 9%
$281,889
Alternative Uses
Best Use
Mixed Use
$362.4K
$317.1K – $422.8K
NOI $25,370 @ 7.0% cap · market cap 6.42%
Second Best
Office B
$306.8K
$268.5K – $358.0K
NOI $21,478 @ 7.0% cap · market cap 5.44%
Theoretical Best
Specialty Retail
$533.3K
$466.6K – $622.2K
NOI $37,331 @ 7.0% cap · market cap 9.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
472
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 - Office or mixed-use building on busy Division Avenue.
Where is this office building located?
The property is located at 2945 S Division Ave Grand Rapids, MI.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Prime location on busy Division Avenue, just off 28th Street and near US‑131.; Versatile zoning suitable for office, mix‑use, work/live, cafe, retail, salon, insurance, and more.; Garage included with the property.
