Ann Arbor R&D
For Sale
$5,658,200
401 W Morgan Rd, Ann Arbor, MI 48108
State-of-the-art R&D building with clean room and warehouse.
Property Size28,176 SF
Lot Size8.90 Acres
Price / SF$200.82
Days on Market164
Property Features for 401 W Morgan Rd
General Information
Standard status
Active
Size
28,176 SF
Total Parking Spaces
108
Lot size
8.90 Acres
Property subtype
Industrial
Zoning
BD
Building Details
Building Size
28,176 SF
Year Built
1994
Buildings
1
Stories
1
Listing Agency:
Colliers - Ann Arbor
Listed By:
James H. Chaconas
(734) 994-3100
Source:
Cpix.resimplifi
Added: Mar 26
Changed: Sep 3
Last Checked: Sep 4 at 2:17AM
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 state-of-the-art research and development building offers a rare ownership opportunity. The property includes 500 square feet of Class 10,000 Clean Room laboratory space, professional office areas, and warehouse space. It features three truck wells and is situated on an 8.9-acre lot, offering potential 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 on a corner lot 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 is currently partially leased with 5 tenants occupying approximately 11,145 square feet. The owner would consider leasing approximately 4,000 square feet of space if desired. The total property size is 28,176 square feet.
Key Highlights
- 500 sq ft Class 10,000 Clean Room laboratory space.
- 8.9‑acre lot with expansion potential and additional parking.
- Wet and dry laboratory options with specialized amenities.
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
Industrial
$2.06M
$1.80M – $2.40M
NOI $143,900 @ 7.0% cap · market cap 2.54%
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
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 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: 500 sq ft Class 10,000 Clean Room laboratory space.; 8.9‑acre lot with expansion potential and additional parking.; Wet and dry laboratory options with specialized amenities.
