Building Details

Year Built 1997

Listing Agency: Coldwell Banker Woodland Schmidt Grand Haven

Listed By: Alec Peterson Show Phone

Source: Katie-k

Added: Sep 20 Last Checked: Sep 24 at 10:53AM

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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 Coldwell Banker Woodland Schmidt Grand Haven

Investment Insights

Based on property information with market context.

This commercial property includes existing buildings totaling 11,084 square feet, constructed in 1997, along Division Avenue in Wayland. The site has an established history of automotive retail and service use, with the property information also identifying potential applications such as automotive services, retail, contractor or shop space, warehouse, and other service-oriented businesses.

The offering includes an adjacent 9-acre parcel, creating a larger combined footprint. Access to US-131 connects the property with Grand Rapids, Kalamazoo, and surrounding communities.

Key Highlights

• 11,084‑square‑foot commercial property
• Adjacent 9‑acre parcel included
• Established automotive retail and service history

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

$62,939

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

8.99%

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%

$1,258,780 $1.3M

Cap Rate 7%

$899,129 $899.1K

Cap Rate 9%

$699,322 $699.3K

Market Conditions

NOI Build-Up for 11,084 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

$76.3K $6.88/SF

− Vacancy

−$2.2K −$0.20/SF

EGI

$74.0K $6.68/SF

− OpEx

−$11.1K −$1.00/SF

NOI

$62.9K $5.68/SF

Area

Allegan County, MI

Vacancy

2.90%

Lease Rate

$6.88 /SF/Yr

Expense Ratio

15.00%

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%

$1,258,780

Cap Rate 7%

$899,129

Cap Rate 9%

$699,322

Alternative Uses

Best Use

Retail

$1.64M

$1.44M – $1.92M (±1% cap)

NOI $115,062 @ 7.0% cap · market cap 16.44%

Second Best

Warehouse

$899.1K

$786.7K – $1.05M (±1% cap)

NOI $62,939 @ 7.0% cap · market cap 8.99%

Theoretical Best

Hotel Hospitality

$104.09M

$91.08M – $121.44M (±1% cap)

NOI $7,286,315 @ 7.0% cap · market cap 1,040.90%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Auto shops

Suggested Use

Top Pick Dental Office Daycare Center Nursing Home Department Store Bar & Pub

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

9

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 49348, MI

14,989

Population

5,629

Households

2.7

Avg Household Size

36

Median Age

23%

College-Educated

94%

High-School Grad

65.7 sq mi

ZIP Area

228

Density / Sq Mi

$79,267

Median Household Income

$41,955

Median Earnings

$1,123

Median Rent

$247,200

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this auto shops located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Auto shop - Commercial improvements with an established automotive retail and service history near US-131.

Where is this auto shop located?

The property is located at 4066 Division Ave S Wayland, MI.

What is the asking price?

The asking price for this property is $700,000.

What are key features of this property?

This property features: 11,084‑square‑foot commercial property; Adjacent 9‑acre parcel included; Established automotive retail and service history