Listing Agency: Cushman & Wakefield | CRESCO Real Estate

Listed By: Brian Smith · License #OH SAL.2016001142

Source: Crexi

Added: Apr 22 Changed: Aug 25 Last Checked: Sep 4 at 4:01AM

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Investment Insights

Based on property information with market context.

422 E Commerce Dr is an industrial facility configured for heavy operations and distribution. The property includes one 9’ x 10’ dock, three 14’ x 16’ drive-in doors, and multiple overhead crane systems, including two 5-ton cranes, two 10-ton cranes, and two 15-ton cranes. With 20-foot ceiling height and 1,200-amp electrical power, the building supports warehouse, heavy manufacturing, and service-oriented uses.

The site is located in the LaGrange Business Corridor, off State Route 301, with access to State Route 10/20. It is positioned for regional connectivity with I-480 within a short drive.

In addition to the existing improvements, the property includes 10 acres of expandable land, offering room for growth on-site as operations expand.

Key Highlights

• 10 acres of expandable land in the LaGrange Business Corridor
• 20‑foot ceiling height for warehousing, distribution, or manufacturing operations
• Three 14' x 16' drive‑in doors and one 9' x 10' dock

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

$201,002

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

5.83%

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%

$4,020,040 $4.0M

Cap Rate 7%

$2,871,457 $2.9M

Cap Rate 9%

$2,233,356 $2.2M

Market Conditions

NOI Build-Up for 43,817 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

$245.8K $5.61/SF

− Vacancy

−$9.3K −$0.21/SF

EGI

$236.5K $5.40/SF

− OpEx

−$35.5K −$0.81/SF

NOI

$201.0K $4.59/SF

Area

Lorain County, OH

Vacancy

3.80%

Lease Rate

$5.61 /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%

$4,020,040

Cap Rate 7%

$2,871,457

Cap Rate 9%

$2,233,356

Alternative Uses

Best Use

Warehouse

$2.87M

$2.51M – $3.35M (±1% cap)

NOI $201,002 @ 7.0% cap · market cap 5.83%

Second Best

Industrial

$2.36M

$2.07M – $2.76M (±1% cap)

NOI $165,531 @ 7.0% cap · market cap 4.80%

Theoretical Best

Office A

$11.04M

$9.66M – $12.88M (±1% cap)

NOI $772,932 @ 7.0% cap · market cap 22.40%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

DM Fabrications LLC General Contractor Mader Dampers Metal Fabrication Plant

Suggested Use

Top Pick Dental Office Building Supply Restaurant Electrical Service Plumbing Service (Bike/Boat/Book/etc) Store

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

20 ft

Clear height

1

Dock-high doors

3

Drive-in doors

Yes

Heavy power

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

86

Businesses Nearby

Explore this area Business Placement

Demographics for 44050, OH

6,724

Population

2,777

Households

2.4

Avg Household Size

44

Median Age

25%

College-Educated

94%

High-School Grad

25.5 sq mi

ZIP Area

264

Density / Sq Mi

$100,625

Median Household Income

$55,744

Median Earnings

$1,011

Median Rent

$258,400

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 manufacturing properties 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?

Manufacturing property - Industrial facility with dock door, multiple drive-in doors, crane capacity, 20-foot ceilings, and 1,200-amp power.

Where is this manufacturing property located?

The property is located at 422 E Commerce Dr Lagrange, OH.

What is the asking price?

The asking price for this property is $3,450,000.

What are key features of this property?

This property features: 10 acres of expandable land in the LaGrange Business Corridor; 20‑foot ceiling height for warehousing, distribution, or manufacturing operations; Three 14' x 16' drive‑in doors and one 9' x 10' dock