Midland Office Building For
For Sale
$192,500
402 Bayliss Street, Midland, MI 48640
Office building with display room, reception, and leaseback option.
Property Size1,400 SF
Price / SF$137.50
Days on Market147
Property Features for 402 Bayliss Street
General Information
Standard status
Active
Size
1,400 SF
Property subtype
Commercial
Zoning
Commercial
Lease Term
Cash, Conventional, Other
Taxes and HOA fees
Annual Taxes
$3,446
Building Details
Building Size
1,400 SF
Year Built
1940
Listing Agency:
RE/MAX New Image
(989) 280-2622
Listed By:
Patrick Devereaux · License #6501180276
(989) 280-2622
Source:
Sabudarealty
Added: Mar 30
Changed: Aug 23
Last Checked: Aug 23 at 5:30AM
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 New Image
Investment Insights
Based on property information with market context.
This office building is situated in a convenient location in Midland, offering proximity to various amenities. The property features a display room with street visibility, a comfortable office space, a break room, and a conference room. A reception area with a fireplace adds to the building's appeal. The property also includes a basement suitable for storage purposes. The seller is open to a leaseback arrangement for approximately two years. The location is considered very bikeable with a bike score of 73 and very walkable with a walk score of 71.
Key Highlights
- Prime location in Midland, close to everything.
- Seller will lease back for 2 years +/-.
- Display room visible from the street.
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
$13,154
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
6.83%
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%
$263,080
$263.1K
Cap Rate 7%
$187,914
$187.9K
Cap Rate 9%
$146,156
$146.2K
Market Conditions
NOI Build-Up for 1,400 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
$20.2K $14.40/SF
− Vacancy
−$2.6K −$1.87/SF
EGI
$17.5K $12.53/SF
− OpEx
−$4.4K −$3.13/SF
NOI
$13.2K $9.40/SF
Area
Midland County, MI
Vacancy
13.00%
Lease Rate
$14.40 /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%
$263,080
Cap Rate 7%
$187,914
Cap Rate 9%
$146,156
Alternative Uses
Best Use
Office B
$187.9K
$164.4K – $219.2K
NOI $13,154 @ 7.0% cap · market cap 6.83%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$252.7K
$221.1K – $294.8K
NOI $17,688 @ 7.0% cap · market cap 9.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
690
Businesses Nearby
Explore this area
Business Placement
Demographics for 48640, MI
31,840
Population
14,340
Households
2.2
Avg Household Size
41
Median Age
38%
College-Educated
96%
High-School Grad
105.1 sq mi
ZIP Area
303
Density / Sq Mi
$81,630
Median Household Income
$43,353
Median Earnings
$928
Median Rent
$191,000
Median Home Value
Market
Vacancy Rate% for Office 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?
Office building - Office building with display room, reception, and leaseback option.
Where is this office building located?
The property is located at 402 Bayliss Street Midland, MI.
What is the asking price?
The asking price for this property is $192,500.
What are key features of this property?
This property features: Prime location in Midland, close to everything.; Seller will lease back for 2 years +/-.; Display room visible from the street.
