Renovated Office Building Near
For Sale
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3989 Research Park Dr, Ann Arbor, MI
Recently renovated office building with expansion potential on 3.05 acres.
Property Size7,837 SF
Lot Size2.98 Acres
Price / SF$370.04
Days on Market344
Property Features for 3989 Research Park Dr
General Information
Standard status
Active
Size
7,837 SF
Lot size
2.98 Acres
Property subtype
OFFICE
Lease Type
Modified Gross
Properties For Sale
at 3989 Research Park Dr Contact us- Size
- 7,837 SF
- Type
- OFFICE
- Lease Type
- MODIFIED_GROSS
- Availability
- AVAILABLE
Standalone Office Building
Exceptional opportunity within the prime South State St corridor, just minutes from...
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Listing Agency:
Colliers - Ann Arbor
(734) 994-3100
Listed By:
James H. Chaconas
(734) 994-3100
Source:
Moodyscre
Added: Sep 11, 2025
Changed: Aug 12
Last Checked: Aug 20 at 5:45AM
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 Colliers - Ann Arbor
Investment Insights
Based on property information with market context.
This 7,837 square foot office building is located in the South State Street corridor, near downtown Ann Arbor and I-94. The property, situated on 3.05 acres, includes 43 parking spaces. The building features a modern design with halo hospital-grade air filtration and 10-zone climate control. It is equipped with dedicated fiber internet and motion-sensor LED lighting with dimmers. The property includes two conference rooms with Zoom cameras and noise-canceling speakers, along with a central kitchen featuring Sub-zero and Bosch appliances. Herman Miller furnishings and workstations are included. The layout offers flexibility with private offices, open work areas, a secure server room, and a rear garage. The site has the capacity to expand up to 90,000 square feet.
Key Highlights
- Prime location near downtown Ann Arbor and I‑94 in the South State St corridor.
- Recently renovated 7,837 SF property on 3.05 acres with 43 parking spaces.
- Modern business features: halo hospital‑grade air filtration, 10‑zone climate control, dedicated fiber internet.
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
$88,046
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
3.04%
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%
$1,760,920
$1.8M
Cap Rate 7%
$1,257,800
$1.3M
Cap Rate 9%
$978,289
$978.3K
Market Conditions
NOI Build-Up for 7,837 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
$137.3K $17.52/SF
− Vacancy
−$19.9K −$2.54/SF
EGI
$117.4K $14.98/SF
− OpEx
−$29.3K −$3.74/SF
NOI
$88.0K $11.23/SF
Area
Ann Arbor, MI
Vacancy
14.50%
Lease Rate
$17.52 /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%
$1,760,920
Cap Rate 7%
$1,257,800
Cap Rate 9%
$978,289
Alternative Uses
Best Use
Office B
$1.26M
$1.10M – $1.47M
NOI $88,046 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.73M
$1.51M – $2.02M
NOI $121,159 @ 7.0% cap · market cap 4.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
721
Businesses Nearby
Explore this area
Business Placement
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 - Recently renovated office building with expansion potential on 3.05 acres.
Where is this office building located?
The property is located at 3989 Research Park Dr Ann Arbor, MI.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Prime location near downtown Ann Arbor and I‑94 in the South State St corridor.; Recently renovated 7,837 SF property on 3.05 acres with 43 parking spaces.; Modern business features: **halo hospital‑grade air filtration**, **10‑zone climate control**, dedicated fiber internet.
