Ann Arbor R&D
For Sale
Contact for pricing
401 W Morgan Rd, Ann Arbor, MI
State-of-the-art R&D building with clean room and warehouse.
Property Size28,176 SF
Lot Size8.93 Acres
Price / SF$200.82
Days on Market268
Property Features for 401 W Morgan Rd
General Information
Standard status
Active
Size
28,176 SF
Lot size
8.93 Acres
Property subtype
LIFE_SCIENCE
Listing Agency:
Colliers - Ann Arbor
(734) 994-3100
Listed By:
James H. Chaconas
(734) 994-3100
Source:
Moodyscre
Added: Nov 25, 2025
Changed: Aug 8
Last Checked: Aug 20 at 5:40AM
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 research and development building offers 6,500 square feet of Class 10,000 Clean Room laboratory space, professional office space, and warehouse space. The property includes three truck wells and is situated on an 8.9-acre lot that allows for expansion or additional parking. The laboratory provides both wet and dry options, along with amenities such as pressurized air, vacuum air, sinks, potable water, DI water sources, dedicated fume hoods, central exhaust systems, 110/210 power, phone, and internet. The property is located at a corner location on S State Street, near the Ann Arbor Municipal Airport and established technology, industry, and R & D campuses and businesses. It provides quick access to I-94, downtown Ann Arbor, and surrounding communities. The building has +/- 11,145 SF currently leased to 5 tenants. The owner would consider leasing (+/- 4,000 SF) space, if desired. The property size is 28,176 square feet.
Key Highlights
- State‑of‑the‑art research and development building with 6,500 SF of Class 10,000 Clean Room laboratory space.
- 8.9‑acre lot** offering expansion potential or additional parking.
- Ideal corner location near Ann Arbor Municipal Airport, technology businesses, and with quick access to I‑94.
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
$268,562
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
4.75%
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%
$5,371,240
$5.4M
Cap Rate 7%
$3,836,600
$3.8M
Cap Rate 9%
$2,984,022
$3.0M
Market Conditions
NOI Build-Up for 28,176 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
$439.5K $15.60/SF
− Vacancy
−$26.4K −$0.94/SF
EGI
$413.2K $14.66/SF
− OpEx
−$144.6K −$5.13/SF
NOI
$268.6K $9.53/SF
Area
Ann Arbor, MI
Vacancy
6.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
35.00%
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%
$5,371,240
Cap Rate 7%
$3,836,600
Cap Rate 9%
$2,984,022
Alternative Uses
Best Use
Flex RnD
$3.84M
$3.36M – $4.48M
NOI $268,562 @ 7.0% cap · market cap 4.75%
Second Best
Warehouse
$2.67M
$2.33M – $3.11M
NOI $186,634 @ 7.0% cap · market cap 3.30%
Theoretical Best
Office A
$6.22M
$5.44M – $7.26M
NOI $435,596 @ 7.0% cap · market cap 7.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
261
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - State-of-the-art R&D building with clean room and warehouse.
Where is this flex space located?
The property is located at 401 W Morgan Rd Ann Arbor, MI.
What is the asking price?
The asking price for this property is $5,658,200.
What are key features of this property?
This property features: State‑of‑the‑art research and development building with **6,500 SF of Class 10,000 Clean Room laboratory space.**; 8.9‑acre lot** offering expansion potential or additional parking.; Ideal corner location near Ann Arbor Municipal Airport, technology businesses, and with quick access to I‑94.
