Corporate Office Building with Medical
For Sale
$3,490,000
2959 LUCERNE DR SE, Grand Rapids, MI 49546
Flexible office layout includes private work areas, training rooms, break rooms, and a medical lab.
Property Size30,000 SF
Price / SF$116.33
Days on Market848
Property Features for 2959 LUCERNE DR SE
General Information
Standard status
Active
Size
30,000 SF
Property subtype
Office
Zoning
PUD-39
Additional Details
Highway Access
Yes
Amenities
Water
Sewer
Building Details
Year Built
1985
Buildings
1
Building Size
30,000 SF
Listing Agency:
NAI Wisinski of West Michigan
(616) 292-1828
Listed By:
Douglas Taatjes · License #6501357172
(616) 292-1828
Source:
Carwm.resimplifi
Added: May 5, 2024
Changed: Aug 29
Last Checked: Aug 29 at 7:36PM
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 NAI Wisinski of West Michigan
Investment Insights
Based on property information with market context.
This 30,000-square-foot office building offers a varied workplace configuration suited to an owner-occupant. The interior includes open work areas, enclosed offices, training rooms, break areas, and additional support space. A medical laboratory occupies space on the main floor, adding flexibility for specialized office or technical operations. Up to 22,500 square feet is available to an owner-occupant buyer, and the property is offered for sale or lease.
Built in 1985 and situated within Centennial Park, the property is near the Cascade area and provides access to an I-96 exit. Nearby retail and dining amenities include Walmart, Meijer, Costco, Target, Dick’s Sporting Goods, Aldi’s, Chik-Fil-A, Starbucks, Qdoba, and Caribou Coffee. The property is zoned PUD-39.
Built in 1985 and situated within Centennial Park, the property is near the Cascade area and provides access to an I-96 exit. Nearby retail and dining amenities include Walmart, Meijer, Costco, Target, Dick’s Sporting Goods, Aldi’s, Chik-Fil-A, Starbucks, Qdoba, and Caribou Coffee. The property is zoned PUD-39.
Key Highlights
- 30,000 SF office building constructed in 1985
- Up to 22,500 SF available for an owner‑occupant buyer
- Open office areas plus private offices and training rooms
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
$280,395
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
8.03%
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%
$5,607,900
$5.6M
Cap Rate 7%
$4,005,643
$4.0M
Cap Rate 9%
$3,115,500
$3.1M
Market Conditions
NOI Build-Up for 30,000 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
$482.4K $16.08/SF
− Vacancy
−$108.5K −$3.62/SF
EGI
$373.9K $12.46/SF
− OpEx
−$93.5K −$3.12/SF
NOI
$280.4K $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%
$5,607,900
Cap Rate 7%
$4,005,643
Cap Rate 9%
$3,115,500
Alternative Uses
Best Use
Office B
$4.01M
$3.50M – $4.67M
NOI $280,395 @ 7.0% cap · market cap 8.03%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.96M
$6.09M – $8.12M
NOI $487,350 @ 7.0% cap · market cap 13.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
893
Businesses Nearby
Explore this area
Business Placement
Demographics for 49546, MI
35,536
Population
13,561
Households
2.6
Avg Household Size
38
Median Age
61%
College-Educated
96%
High-School Grad
17.9 sq mi
ZIP Area
1,985
Density / Sq Mi
$97,386
Median Household Income
$48,008
Median Earnings
$1,275
Median Rent
$389,100
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 - Flexible office layout includes private work areas, training rooms, break rooms, and a medical lab.
Where is this office building located?
The property is located at 2959 LUCERNE DR SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $3,490,000.
What are key features of this property?
This property features: 30,000 SF office building constructed in 1985; Up to 22,500 SF available for an owner‑occupant buyer; Open office areas plus private offices and training rooms
