Flex Space with
For Sale
$224,900
5240 Us-131, Mancelona, MI 49659
Commercial flex space combines shop capacity, office areas, and paved working surfaces on a substantial US 131 frontage parcel.
Property Size2,800 SF
Lot Size4.29 Acres
Price / SF$80.32
Days on Market67
Property Features for 5240 Us-131
General Information
Standard status
Active
Size
2,800 SF
Lot size
4.29 Acres
Property subtype
General Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Warehouse Space
2,400 SF
Amenities
3
340 x 550
Building Details
Year Built
2000
Listing Agency:
(231) 564-2600
Listed By:
The Difference Real Estate
(231) 564-2600
Source:
Xome
Added: Jun 14
Changed: Aug 18
Last Checked: Aug 18 at 6:04AM
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 The Difference Real Estate
Investment Insights
Based on property information with market context.
Built in 2000, this 2,800-square-foot flex property combines a shop area with dedicated office and restroom space. The shop measures 40 by 60 feet and has a cement floor, two 14-foot-tall doors measuring 13 feet wide, and a 3-ton crane. Two offices and one bathroom support the building’s commercial configuration.
The property encompasses approximately 4.29 acres with about 140 feet of frontage along US 131. Its layout includes practical service and workspace components within a freestanding commercial building, offering a clear separation between shop functions and administrative areas.
The property encompasses approximately 4.29 acres with about 140 feet of frontage along US 131. Its layout includes practical service and workspace components within a freestanding commercial building, offering a clear separation between shop functions and administrative areas.
Key Highlights
- 2,800‑square‑foot flex building constructed in 2000
- Approximately 4.29 acres with about 140 feet of US 131 frontage
- 40x60 shop area with cement floor
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
$18,427
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
8.19%
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%
$368,540
$368.5K
Cap Rate 7%
$263,243
$263.2K
Cap Rate 9%
$204,744
$204.7K
Market Conditions
NOI Build-Up for 2,800 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
$22.5K $8.04/SF
− Vacancy
−$833 −$0.30/SF
EGI
$21.7K $7.74/SF
− OpEx
−$3.3K −$1.16/SF
NOI
$18.4K $6.58/SF
Area
Antrim County, MI
Vacancy
3.70%
Lease Rate
$8.04 /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%
$368,540
Cap Rate 7%
$263,243
Cap Rate 9%
$204,744
Alternative Uses
Best Use
Warehouse
$263.2K
$230.3K – $307.1K
NOI $18,427 @ 7.0% cap · market cap 8.19%
Second Best
Industrial
$216.8K
$189.7K – $252.9K
NOI $15,175 @ 7.0% cap · market cap 6.75%
Theoretical Best
Office A
$498.3K
$436.0K – $581.3K
NOI $34,880 @ 7.0% cap · market cap 15.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
176
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49659, MI
6,670
Population
4,586
Households
1.5
Avg Household Size
44
Median Age
18%
College-Educated
89%
High-School Grad
175.0 sq mi
ZIP Area
38
Density / Sq Mi
$59,092
Median Household Income
$33,269
Median Earnings
$792
Median Rent
$141,700
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 - Commercial flex space combines shop capacity, office areas, and paved working surfaces on a substantial US 131 frontage parcel.
Where is this flex space located?
The property is located at 5240 Us-131 Mancelona, MI.
What is the asking price?
The asking price for this property is $224,900.
What are key features of this property?
This property features: 2,800‑square‑foot flex building constructed in 2000; Approximately 4.29 acres with about 140 feet of US 131 frontage; 40x60 shop area with cement floor
