Flexible Office-Retail
For Sale
Contact for pricing
5100 E Michigan Avenue, Kalamazoo, MI 49048
Former car dealership with two offices and two large open areas, suited for sales, service, retail, or light commercial uses.
Property Size1,320 SF
Price / SF$151.44
Days on Market72
Property Features for 5100 E Michigan Avenue
General Information
Standard status
Active
Size
1,320 SF
Property subtype
Office, Retail, Industrial
Additional Details
Office Units
2
Building Details
Year Built
2002
Listing Agency:
Five Star Real Estate
(269) 342-5600
Listed By:
Natasha Anderson
Source:
Crexi
Added: Jun 11
Changed: Jul 10
Last Checked: Aug 21 at 4:24PM
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 Five Star Real Estate
Investment Insights
Based on property information with market context.
This flexible commercial building was formerly operated as a car dealership and offers a layout designed for both customer-facing space and private work. Inside, you’ll find two private offices and two large open areas that can support a range of operating models. The open floor plans provide room for vehicle displays, inventory storage, customer service, retail merchandising, or collaborative work, while the separate offices support management, administrative work, or client meetings.
The property is described as well-positioned with strong traffic exposure, making it a practical option for businesses that benefit from drive-by visibility. Its commercial setup aligns with service and sales concepts, and the space can be arranged to match different front-of-house and back-of-house needs.
For buyers and tenants, the combination of private office space and expansive open areas supports multiple use cases, including continued auto dealership/vehicle sales use, specialty retail, contractor headquarters, professional offices, or service-oriented operations. The floor plan is intentionally adaptable, allowing a new owner to customize the interior to fit their specific business requirements.
The property is described as well-positioned with strong traffic exposure, making it a practical option for businesses that benefit from drive-by visibility. Its commercial setup aligns with service and sales concepts, and the space can be arranged to match different front-of-house and back-of-house needs.
For buyers and tenants, the combination of private office space and expansive open areas supports multiple use cases, including continued auto dealership/vehicle sales use, specialty retail, contractor headquarters, professional offices, or service-oriented operations. The floor plan is intentionally adaptable, allowing a new owner to customize the interior to fit their specific business requirements.
Key Highlights
- Built in 2002, former car dealership building ready for commercial use
- Flexible layout with two private offices plus two large open areas
- Open floor plans can support sales, retail, office, service, or light commercial operations
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
$8,904
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
4.45%
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%
$178,080
$178.1K
Cap Rate 7%
$127,200
$127.2K
Cap Rate 9%
$98,933
$98.9K
Market Conditions
NOI Build-Up for 1,320 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
$14.6K $11.04/SF
− Vacancy
−$874 −$0.66/SF
EGI
$13.7K $10.38/SF
− OpEx
−$4.8K −$3.63/SF
NOI
$8.9K $6.75/SF
Area
Kalamazoo County, MI
Vacancy
6.00%
Lease Rate
$11.04 /SF/Yr
Expense Ratio
35.00%
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%
$178,080
Cap Rate 7%
$127,200
Cap Rate 9%
$98,933
Alternative Uses
Best Use
Industrial
$284.5K
$248.9K – $331.9K
NOI $19,912 @ 7.0% cap · market cap 9.96%
Second Best
Flex RnD
$127.2K
$111.3K – $148.4K
NOI $8,904 @ 7.0% cap · market cap 4.45%
Theoretical Best
Warehouse
$345.4K
$302.2K – $403.0K
NOI $24,179 @ 7.0% cap · market cap 12.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
625
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49048, MI
25,067
Population
10,440
Households
2.4
Avg Household Size
36
Median Age
25%
College-Educated
90%
High-School Grad
35.1 sq mi
ZIP Area
714
Density / Sq Mi
$62,160
Median Household Income
$36,150
Median Earnings
$1,032
Median Rent
$158,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Former car dealership with two offices and two large open areas, suited for sales, service, retail, or light commercial uses.
Where is this flex space located?
The property is located at 5100 E Michigan Avenue Kalamazoo, MI.
What is the asking price?
The asking price for this property is $199,900.
What are key features of this property?
This property features: Built in 2002, former car dealership building ready for commercial use; Flexible layout with two private offices plus two large open areas; Open floor plans can support sales, retail, office, service, or light commercial operations
