Flexible Commercial Building with
For Sale
$193,510
5100 E Michigan Avenue, Kalamazoo, MI 49048
Former car dealership with two private offices and two large open areas for sales, retail, office, or light commercial use.
Property Size1,320 SF
Days on Market28
Property Features for 5100 E Michigan Avenue
General Information
Standard status
Active
Size
1,320 SF
Property subtype
Commercial
Zoning
B-3
Taxes and HOA fees
Annual Taxes
$3,182
Building Details
Building Size
1,320 SF
Year Built
2002
Buildings
1
Stories
1320
Units
1
Listing Agency:
Five Star Real Estate
(269) 544-9699
Listed By:
Natasha R Anderson
(269) 544-9699
Source:
Thebrokeragehouse
Added: Jul 27
Changed: Aug 14
Last Checked: Aug 22 at 12:51PM
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 is laid out with two private offices and two large open areas. The open floor plans are designed to support adaptable customer-facing and operational uses, including vehicle display, inventory storage, collaborative work areas, service functions, or retail merchandising. The two separate offices offer dedicated space for management, administrative work, or client meetings.
The property is offered for sale by motivated sellers, and the remarks note that a land contract and lease option may be available with a large down payment. With its dealership-era configuration and adaptable interior space, the building can be continued as an automotive sales and service location or reconfigured for other commercial ventures such as specialty retail, contractor headquarters, professional offices, and service businesses.
A buyer can use the existing arrangement of private offices plus expansive open areas to fit a range of operational needs, depending on how they want to configure customer and work zones within the building.
The property is offered for sale by motivated sellers, and the remarks note that a land contract and lease option may be available with a large down payment. With its dealership-era configuration and adaptable interior space, the building can be continued as an automotive sales and service location or reconfigured for other commercial ventures such as specialty retail, contractor headquarters, professional offices, and service businesses.
A buyer can use the existing arrangement of private offices plus expansive open areas to fit a range of operational needs, depending on how they want to configure customer and work zones within the building.
Key Highlights
- Built in 2002, former car dealership building with flexible commercial layout.
- Two private offices plus two large open areas for sales, retail, office, or service/light commercial use.
- Open floor plans suitable for vehicle displays, inventory storage, customer service, or retail merchandising.
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
$13,230
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
6.84%
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%
$264,600
$264.6K
Cap Rate 7%
$189,000
$189.0K
Cap Rate 9%
$147,000
$147.0K
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
$19.0K $14.40/SF
− Vacancy
−$1.4K −$1.04/SF
EGI
$17.6K $13.36/SF
− OpEx
−$4.4K −$3.34/SF
NOI
$13.2K $10.02/SF
Area
Kalamazoo County, MI
Vacancy
7.20%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
25.00%
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%
$264,600
Cap Rate 7%
$189,000
Cap Rate 9%
$147,000
Alternative Uses
Best Use
Office B
$189.0K
$165.4K – $220.5K
NOI $13,230 @ 7.0% cap · market cap 6.84%
Second Best
Retail
$130.0K
$113.8K – $151.7K
NOI $9,103 @ 7.0% cap · market cap 4.70%
Theoretical Best
Warehouse
$345.4K
$302.2K – $403.0K
NOI $24,179 @ 7.0% cap · market cap 12.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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 Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- At Home — 4620 Stadium Dr, Kalamazoo, MI 49008
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Frequently Asked Questions
What type of property is this?
Showroom - Former car dealership with two private offices and two large open areas for sales, retail, office, or light commercial use.
Where is this showroom located?
The property is located at 5100 E Michigan Avenue Kalamazoo, MI.
What is the asking price?
The asking price for this property is $193,510.
What are key features of this property?
This property features: Built in 2002, former car dealership building with flexible commercial layout.; Two private offices plus two large open areas for sales, retail, office, or service/light commercial use.; Open floor plans suitable for vehicle displays, inventory storage, customer service, or retail merchandising.
