Two-Story Medical Office
For Sale
$1,295,000
3587 Henry St, Norton Shores, MI 49441
Medical office property with recent HVAC improvements and flexibility for professional office use.
Property Size11,603 SF
Price / SF$111.61
Days on Market159
Property Features for 3587 Henry St
General Information
Standard status
Active
Size
11,603 SF
Property subtype
Commercial
Building Details
Year Built
2003
Buildings
1
Stories
2
Listing Agency:
Core Realty Partners LLC
(231) 750-9627
Listed By:
Troy Wasserman · License #6501349494
Source:
Metrodetroithomeguide
Added: Mar 25
Changed: Aug 30
Last Checked: Aug 25 at 7:12AM
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 Core Realty Partners LLC
Investment Insights
Based on property information with market context.
Built in 2003, this two-story medical office building has supported physician and dental practices and offers a configuration suited to professional office occupancy. The property can also be adapted for other professional office uses, subject to applicable requirements. Recent work includes improvements to the HVAC system.
The building is positioned along the Henry Street corridor in Norton Shores. Surrounding properties include national restaurant chains, professional offices, and high-density residential development. A former Kmart site across Henry Street has been redeveloped into a mixed-use project that includes a Mercy Health Partners facility.
The building is positioned along the Henry Street corridor in Norton Shores. Surrounding properties include national restaurant chains, professional offices, and high-density residential development. A former Kmart site across Henry Street has been redeveloped into a mixed-use project that includes a Mercy Health Partners facility.
Key Highlights
- Two‑story medical office building constructed in 2003
- Previously used for physician and dental practices
- Adaptable for other professional office uses
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
$96,213
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
7.43%
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%
$1,924,260
$1.9M
Cap Rate 7%
$1,374,471
$1.4M
Cap Rate 9%
$1,069,033
$1.1M
Market Conditions
NOI Build-Up for 11,603 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
$169.9K $14.64/SF
− Vacancy
−$9.5K −$0.82/SF
EGI
$160.4K $13.82/SF
− OpEx
−$64.1K −$5.53/SF
NOI
$96.2K $8.29/SF
Area
Ottawa County, MI
Vacancy
5.60%
Lease Rate
$14.64 /SF/Yr
Expense Ratio
40.00%
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%
$1,924,260
Cap Rate 7%
$1,374,471
Cap Rate 9%
$1,069,033
Alternative Uses
Best Use
Office B
$1.83M
$1.60M – $2.13M
NOI $127,823 @ 7.0% cap · market cap 9.87%
Second Best
Healthcare Medical
$1.37M
$1.20M – $1.60M
NOI $96,213 @ 7.0% cap · market cap 7.43%
Theoretical Best
Multifamily LT 5
$144.29M
$126.25M – $168.33M
NOI $10,100,052 @ 7.0% cap · market cap 779.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
225
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49441, MI
36,886
Population
16,491
Households
2.2
Avg Household Size
43
Median Age
28%
College-Educated
94%
High-School Grad
21.7 sq mi
ZIP Area
1,700
Density / Sq Mi
$65,235
Median Household Income
$38,132
Median Earnings
$1,080
Median Rent
$194,000
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?
Medical Office Space - Medical office property with recent HVAC improvements and flexibility for professional office use.
Where is this medical office space located?
The property is located at 3587 Henry St Norton Shores, MI.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: Two‑story medical office building constructed in 2003; Previously used for physician and dental practices; Adaptable for other professional office uses
