High-Traffic Commercial Property for
For Sale
$500,000
5101 South Pennsylvania Avenue, Lansing, MI 48911
Commercial property with dual revenue streams at a high-traffic intersection.
Property Size3,071 SF
Price / SF$162.81
Days on Market331
Property Features for 5101 South Pennsylvania Avenue
General Information
Standard status
Active
Size
3,071 SF
Property subtype
Business Opportunities (Other)
Zoning
CM
Building Details
Building Size
3,071 SF
Year Built
1956
Listing Agency:
RE/MAX
(517) 896-9669
Listed By:
Jodi Jones · License #188231
(517) 896-9669
Source:
Remaxcommercial
Added: Sep 25, 2025
Changed: Aug 8
Last Checked: Aug 20 at 4:06AM
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 RE/MAX
Investment Insights
Based on property information with market context.
Located at the intersection of Jolly and Pennsylvania, this commercial property offers a business opportunity with dual revenue streams. The site currently houses Mikho's Smoke Shop and a tire shop, both included in the sale. The property benefits from high visibility, steady traffic flow, and an established clientele. The property size is 3071 square feet.
Key Highlights
- High‑traffic intersection location at Jolly and Pennsylvania
- Dual revenue streams from established Mikho's Smoke Shop and tire shop
- Turn‑key investment opportunity
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
$27,796
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
5.56%
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%
$555,920
$555.9K
Cap Rate 7%
$397,086
$397.1K
Cap Rate 9%
$308,844
$308.8K
Market Conditions
NOI Build-Up for 3,071 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
$46.1K $15.00/SF
− Vacancy
−$6.4K −$2.07/SF
EGI
$39.7K $12.93/SF
− OpEx
−$11.9K −$3.88/SF
NOI
$27.8K $9.05/SF
Area
Lansing, MI
Vacancy
13.80%
Lease Rate
$15.00 /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%
$555,920
Cap Rate 7%
$397,086
Cap Rate 9%
$308,844
Alternative Uses
Best Use
Retail
$397.1K
$347.5K – $463.3K
NOI $27,796 @ 7.0% cap · market cap 5.56%
Second Best
Industrial
$285.1K
$249.4K – $332.6K
NOI $19,954 @ 7.0% cap · market cap 3.99%
Theoretical Best
Office A
$632.1K
$553.1K – $737.5K
NOI $44,250 @ 7.0% cap · market cap 8.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
798
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48911, MI
40,566
Population
18,069
Households
2.2
Avg Household Size
36
Median Age
26%
College-Educated
90%
High-School Grad
17.3 sq mi
ZIP Area
2,345
Density / Sq Mi
$54,882
Median Household Income
$36,245
Median Earnings
$933
Median Rent
$136,900
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- A & M Supreme Auto Repair - Lansing MI — 5700 S Pennsylvania Ave, Lansing, MI 48911
- Valvoline Instant Oil Change — 5725 S Cedar St, Lansing, MI 48911
- Big Ray's Express Lube — 5730 S Cedar St, Lansing, MI 48911
- Capitol Cadillac Collision Center — 5901 S Pennsylvania Ave, Lansing, MI 48911
- Motorcars Collision Center — 6000 S Pennsylvania Ave, Lansing, MI 48911
Frequently Asked Questions
What type of property is this?
Auto shop - Commercial property with dual revenue streams at a high-traffic intersection.
Where is this auto shop located?
The property is located at 5101 South Pennsylvania Avenue Lansing, MI.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: High‑traffic intersection location at Jolly and Pennsylvania; Dual revenue streams from established Mikho's Smoke Shop and tire shop; Turn‑key investment opportunity
