Renovated Office Suite with Rear
For Sale
$2,900,000
3989 Research Park Dr, Ann Arbor, MI 48108
Recently renovated office building with modern HVAC, air filtration, and multiple office configurations, plus on-site parking and rear garage.
Property Size7,837 SF
Lot Size3.05 Acres
Price / SF$370.04
Days on Market344
Property Features for 3989 Research Park Dr
General Information
Standard status
Active
Size
7,837 SF
Class
C
Total Parking Spaces
43
Lot size
3.05 Acres
Property subtype
Office
Zoning
RE
Additional Details
Business Included
Yes
Highway Access
Yes
Building Details
Building Size
7,837 SF
Year Built
1950
Year Renovated
2019
Buildings
1
Stories
1
Listing Agency:
Colliers - Ann Arbor
(734) 994-3100
Listed By:
James H. Chaconas
(734) 994-3100
Source:
Cpix.resimplifi
Added: Sep 11, 2025
Changed: Aug 8
Last Checked: Aug 20 at 4:04AM
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 recently renovated office property totals 7,837 SF and is built around a flexible interior layout that supports private offices, open work areas, and a secure server room. The space includes two conference rooms with Zoom cameras and noise-canceling speakers, along with a central kitchen equipped with premium appliances. Comfort and air quality are addressed with halo hospital-grade air filtration and 10-zone climate control, while motion-sensor LED lighting with dimmers helps balance usability and efficiency. The offering is turnkey and includes Herman Miller furnishings and workstations, plus dedicated fiber internet.
The building is located along the South State St corridor in Ann Arbor, with access to downtown and I-94 just minutes away. The site provides 43 parking spaces, based on approximately 5.5 spaces per 1,000 SF. A rear garage supports additional operational flexibility, and the property includes enough site capacity to expand up to 90,000 SF.
For tenants or buyers seeking a move-in-ready office environment, the combination of updated building systems, conference-ready rooms, and a secure server area offers an operationally complete setup. With configurable work zones and a kitchen for day-to-day use, the property can suit a range of professional office needs, and the on-site parking plus rear garage support smoother staff and client access.
The building is located along the South State St corridor in Ann Arbor, with access to downtown and I-94 just minutes away. The site provides 43 parking spaces, based on approximately 5.5 spaces per 1,000 SF. A rear garage supports additional operational flexibility, and the property includes enough site capacity to expand up to 90,000 SF.
For tenants or buyers seeking a move-in-ready office environment, the combination of updated building systems, conference-ready rooms, and a secure server area offers an operationally complete setup. With configurable work zones and a kitchen for day-to-day use, the property can suit a range of professional office needs, and the on-site parking plus rear garage support smoother staff and client access.
Key Highlights
- Recently renovated 7,837 SF office building on 3.05 acres in the South State St corridor
- 43 parking spaces (5.5/1,000 SF) plus a rear garage for added on‑site access
- Hospital‑grade air filtration and 10‑zone climate control
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
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
721
Businesses Nearby
Explore this area
Business Placement
Demographics for 48108, MI
26,639
Population
12,508
Households
2.1
Avg Household Size
37
Median Age
65%
College-Educated
96%
High-School Grad
16.8 sq mi
ZIP Area
1,586
Density / Sq Mi
$80,425
Median Household Income
$46,434
Median Earnings
$1,316
Median Rent
$378,300
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?
Office building - Recently renovated office building with modern HVAC, air filtration, and multiple office configurations, plus on-site parking and rear garage.
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: Recently renovated 7,837 SF office building on 3.05 acres in the South State St corridor; 43 parking spaces (5.5/1,000 SF) plus a rear garage for added on‑site access; Hospital‑grade air filtration and 10‑zone climate control
