Freestanding Storefront with
For Sale
$298,000
401 E Mount Hope Avenue, Lansing, MI 48910
Freestanding commercial space with private parking, existing bathrooms, and flexibility for a new retail or service concept.
Property Size2,220 SF
Price / SF$134.23
Days on Market306
Property Features for 401 E Mount Hope Avenue
General Information
Standard status
Active
Size
2,220 SF
Property Condition
Severity
Repairs Needed
Evidence
needs updating
Taxes and HOA fees
Annual Taxes
$6,782
Amenities
large private parking lot
two in-place bathrooms
Building Details
Buildings
1
Listing Agency:
RE/MAX Real Estate Professionals
(517) 321-8255
Listed By:
Shirley Boucha · License #6501368878
(517) 214-4185
Source:
Exprealty
Added: Nov 6, 2025
Changed: Sep 8
Last Checked: Sep 8 at 2:47PM
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 RE/MAX Real Estate Professionals
Investment Insights
Based on property information with market context.
This freestanding storefront contains 2,220 square feet and was previously used as a restaurant. The building includes two bathrooms and a private parking lot, while the interior requires updating for its next use. Its open condition allows a new owner to rework the space around a retail, office, food-service, or other commercial concept.
Located at 401 E Mount Hope Avenue in Lansing, the property sits at a major intersection described as high traffic, providing exposure from passing vehicles. The existing parking and bathroom improvements offer a starting point for repositioning the building, subject to the buyer’s planned build-out and applicable approvals.
Located at 401 E Mount Hope Avenue in Lansing, the property sits at a major intersection described as high traffic, providing exposure from passing vehicles. The existing parking and bathroom improvements offer a starting point for repositioning the building, subject to the buyer’s planned build-out and applicable approvals.
Key Highlights
- 2,220‑square‑foot freestanding commercial building
- Former restaurant property requiring interior updates
- Private parking lot included
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
$23,736
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
7.97%
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%
$474,720
$474.7K
Cap Rate 7%
$339,086
$339.1K
Cap Rate 9%
$263,733
$263.7K
Market Conditions
NOI Build-Up for 2,220 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
$36.0K $16.20/SF
− Vacancy
−$4.3K −$1.94/SF
EGI
$31.6K $14.26/SF
− OpEx
−$7.9K −$3.56/SF
NOI
$23.7K $10.69/SF
Area
Lansing, MI
Vacancy
12.00%
Lease Rate
$16.20 /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%
$474,720
Cap Rate 7%
$339,086
Cap Rate 9%
$263,733
Alternative Uses
Best Use
Specialty Retail
$339.1K
$296.7K – $395.6K
NOI $23,736 @ 7.0% cap · market cap 7.97%
Second Best
Retail
$287.0K
$251.2K – $334.9K
NOI $20,093 @ 7.0% cap · market cap 6.74%
Theoretical Best
Office A
$457.0K
$399.9K – $533.1K
NOI $31,988 @ 7.0% cap · market cap 10.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
852
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48910, MI
33,702
Population
17,119
Households
2
Avg Household Size
35
Median Age
32%
College-Educated
91%
High-School Grad
14.2 sq mi
ZIP Area
2,373
Density / Sq Mi
$52,154
Median Household Income
$36,643
Median Earnings
$1,003
Median Rent
$117,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Freestanding commercial space with private parking, existing bathrooms, and flexibility for a new retail or service concept.
Where is this storefront property located?
The property is located at 401 E Mount Hope Avenue Lansing, MI.
What is the asking price?
The asking price for this property is $298,000.
What are key features of this property?
This property features: 2,220‑square‑foot freestanding commercial building; Former restaurant property requiring interior updates; Private parking lot included
