Building Details

Year Built 1991

Listing Agency: Coldwell Banker Beiswanger Realty Group t***@trowerealestate.com Show Phone

Listed By: Todd Rowe · License #6506049495

Source: Katie-k

Added: Jul 27 Changed: Aug 29 Last Checked: Aug 29 at 7:44PM

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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 Beiswanger Realty Group

Investment Insights

Based on property information with market context.

Constructed in 1991, this mixed-use property combines professional office facilities, salon space, and residential accommodation. The office component includes five private offices, a conference area, reception space, and a breakroom. Separate salon improvements provide two workstations, while a one-bedroom, one-bathroom apartment adds a residential component.

The property is located at 4426 E Berry Rd in Pleasant Lake, Michigan. The existing configuration supports multiple commercial functions within one asset, with the apartment providing an additional use component. Lease options are available according to the transaction information.

Key Highlights

• Five private offices with conference, reception, and breakroom areas
• Salon area equipped with 2 workstations
• Rented 1‑bedroom, 1‑bathroom apartment

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

$31,998

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

9.14%

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%

$639,960 $640.0K

Cap Rate 7%

$457,114 $457.1K

Cap Rate 9%

$355,533 $355.5K

Market Conditions

NOI Build-Up for 3,861 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

$60.2K $15.60/SF

− Vacancy

−$9.0K −$2.34/SF

EGI

$51.2K $13.26/SF

− OpEx

−$19.2K −$4.97/SF

NOI

$32.0K $8.29/SF

Area

Jackson County, MI

Vacancy

15.00%

Lease Rate

$15.60 /SF/Yr

Expense Ratio

37.50%

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%

$639,960

Cap Rate 7%

$457,114

Cap Rate 9%

$355,533

Alternative Uses

Best Use

Office B

$462.3K

$404.5K – $539.3K (±1% cap)

NOI $32,358 @ 7.0% cap · market cap 9.25%

Second Best

Mixed Use

$457.1K

$400.0K – $533.3K (±1% cap)

NOI $31,998 @ 7.0% cap · market cap 9.14%

Theoretical Best

Office A

$616.3K

$539.3K – $719.1K (±1% cap)

NOI $43,144 @ 7.0% cap · market cap 12.33%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Cutting Time Hair ... Hair Salon Wild Soul Suites Hair Salon Sharp Construction General Contractor

Suggested Use

Top Pick Building Supply (Bike/Boat/Book/etc) Store Storage Facility Hair Salon Hotel & Motel Department 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.

Location Intelligence

Trade Area within ½ mile

16

Businesses Nearby

Explore this area Business Placement

Demographics for 49272, MI

2,413

Population

1,210

Households

2

Avg Household Size

47

Median Age

28%

College-Educated

95%

High-School Grad

11.1 sq mi

ZIP Area

217

Density / Sq Mi

$90,156

Median Household Income

$49,167

Median Earnings

$196,700

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use 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?

Mixed-use property - Office-focused commercial property with salon improvements and an on-site residential unit.

Where is this mixed-use property located?

The property is located at 4426 E Berry Rd Pleasant Lake, MI.

What is the asking price?

The asking price for this property is $350,000.

What are key features of this property?

This property features: Five private offices with conference, reception, and breakroom areas; Salon area equipped with 2 workstations; Rented 1‑bedroom, 1‑bathroom apartment