Downtown Bay City Retail
For Sale
$224,900
412 Washington Ave, Bay City, MI 48708
2,500 sq ft retail space in downtown Bay City.
Property Size2,500 SF
Lot Size0.23 Acres
Price / SF$89.96
Days on Market163
Property Features for 412 Washington Ave
General Information
Standard status
Active
Size
2,500 SF
Lot size
0.23 Acres
Property subtype
Commercial
Building Details
Year Built
1956
Listing Agency:
Century 21 Signature Realty
(989) 239-5581
Listed By:
Ken Kujawa · License #6502333762
(989) 239-5581
Source:
Elliman
Added: Mar 11
Changed: Jul 6
Last Checked: Aug 20 at 9:30AM
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 Century 21 Signature Realty
Investment Insights
Based on property information with market context.
This is a 2,500 sq. ft. retail commercial space located in the downtown Bay City area. The property features updated HVAC systems and exposed 12 ft ceilings. A parking lot is located behind the building at 415 Adams, offering a total lot size of 200 feet deep by 50 feet wide. The property is located near City Hall, Starbucks and the new Pita Way.
Key Highlights
- Prime downtown Bay City location near City Hall, Starbucks, and Pita Way
- Dedicated parking lot (200 ft x 50 ft) located behind the property at 415 Adams
- Spacious 2,500 sq. ft. of retail commercial space
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
$18,480
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
8.22%
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%
$369,600
$369.6K
Cap Rate 7%
$264,000
$264.0K
Cap Rate 9%
$205,333
$205.3K
Market Conditions
NOI Build-Up for 2,500 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
$30.0K $12.00/SF
− Vacancy
−$3.6K −$1.44/SF
EGI
$26.4K $10.56/SF
− OpEx
−$7.9K −$3.17/SF
NOI
$18.5K $7.39/SF
Area
Bay County, MI
Vacancy
12.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$369,600
Cap Rate 7%
$264,000
Cap Rate 9%
$205,333
Alternative Uses
Best Use
Retail
$264.0K
$231.0K – $308.0K
NOI $18,480 @ 7.0% cap · market cap 8.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$452.6K
$396.0K – $528.0K
NOI $31,680 @ 7.0% cap · market cap 14.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,313
Businesses Nearby
88k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 78%
Hotels & Casinos 18%
Shops & Services 4%
McDonald's
Dining
26,474 visits/mo
0.1 miles
Starbucks
Dining
16,323 visits/mo
0.0 miles
Taco Bell
Dining
15,676 visits/mo
0.1 miles
Rally's
Dining
9,737 visits/mo
0.4 miles
DoubleTree by Hilton Hotel Bay City - Riverfront
Hotels & Casinos
9,610 visits/mo
0.2 miles
Demographics for 48708, MI
25,860
Population
12,625
Households
2
Avg Household Size
41
Median Age
17%
College-Educated
89%
High-School Grad
29.1 sq mi
ZIP Area
889
Density / Sq Mi
$50,216
Median Household Income
$31,978
Median Earnings
$703
Median Rent
$98,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - 2,500 sq ft retail space in downtown Bay City.
Where is this retail space located?
The property is located at 412 Washington Ave Bay City, MI.
What is the asking price?
The asking price for this property is $224,900.
What are key features of this property?
This property features: Prime downtown Bay City location near City Hall, Starbucks, and Pita Way; Dedicated parking lot (200 ft x 50 ft) located behind the property at 415 Adams; Spacious 2,500 sq. ft. of retail commercial space
