Retail/Office Space on State
For Sale
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3 State Park Dr, Bay City, MI 48706
Renovated retail/office space in great location, built in 2023.
Property Size3,500 SF
Price / SF$82.86
Days on Market185
Property Features for 3 State Park Dr
General Information
Standard status
Active
Size
3,500 SF
Property subtype
Retail, Office
Zoning
C-2
Building Details
Year Built
2023
Listing Agency:
Commercial Equities
(989) 450-2236
Listed By:
Sandra J. Covaleski · License #6502139796
Source:
Crexi
Added: Feb 17
Changed: Aug 20
Last Checked: Aug 20 at 12:01PM
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 Commercial Equities
Investment Insights
Based on property information with market context.
This renovated property, constructed in 2023, is suitable for retail or office use. Originally intended as a dispensary, the interior includes completed restrooms and a safe, with the remaining build-out to be completed. The property benefits from its location at a traffic light on State Park Drive and Wilder Road. On-site parking is available on the north side of the property, offering convenient access from both State Park Drive and Old Kawkawlin. The property has a size of 3500 square feet.
Key Highlights
- Built in 2023 and renovated for a dispensary.
- Excellent location at the traffic light on State Park & Wilder Road.
- Restrooms and safe are already completed.
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
$25,872
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
8.92%
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%
$517,440
$517.4K
Cap Rate 7%
$369,600
$369.6K
Cap Rate 9%
$287,467
$287.5K
Market Conditions
NOI Build-Up for 3,500 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
$42.0K $12.00/SF
− Vacancy
−$5.0K −$1.44/SF
EGI
$37.0K $10.56/SF
− OpEx
−$11.1K −$3.17/SF
NOI
$25.9K $7.39/SF
Area
Bay County, MI
Vacancy
12.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$517,440
Cap Rate 7%
$369,600
Cap Rate 9%
$287,467
Alternative Uses
Best Use
Office B
$475.2K
$415.8K – $554.4K
NOI $33,264 @ 7.0% cap · market cap 11.47%
Second Best
Retail
$369.6K
$323.4K – $431.2K
NOI $25,872 @ 7.0% cap · market cap 8.92%
Theoretical Best
Office A
$633.6K
$554.4K – $739.2K
NOI $44,352 @ 7.0% cap · market cap 15.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
481
Businesses Nearby
Explore this area
Business Placement
Demographics for 48706, MI
39,381
Population
18,163
Households
2.2
Avg Household Size
45
Median Age
24%
College-Educated
93%
High-School Grad
66.3 sq mi
ZIP Area
594
Density / Sq Mi
$61,908
Median Household Income
$40,151
Median Earnings
$887
Median Rent
$142,300
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?
Retail space - Renovated retail/office space in great location, built in 2023.
Where is this retail space located?
The property is located at 3 State Park Dr Bay City, MI.
What is the asking price?
The asking price for this property is $290,000.
What are key features of this property?
This property features: Built in 2023 and renovated for a dispensary.; Excellent location at the traffic light on State Park & Wilder Road.; Restrooms and safe are already completed.
