Office Development on Pierson
For Sale
$400,000
5265 W PIERSON Rd, Flushing, MI 48433
Five-unit office development for sale or lease near US-75.
Property Size1,880 SF
Lot Size1.51 Acres
Price / SF$212.77
Days on Market164
Property Features for 5265 W PIERSON Rd
General Information
Standard status
Active
Size
1,880 SF
Lot size
1.51 Acres
Property subtype
Commercial
Building Details
Year Built
1980
Listing Agency:
Tremaine Real Estate
(810) 750-4665
Listed By:
Edward S Constable · License #6501377324
(810) 750-4665
Source:
Elliman
Added: Mar 10
Changed: Jul 6
Last Checked: Aug 20 at 8:34AM
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 Tremaine Real Estate
Investment Insights
Based on property information with market context.
This property features a five-unit, two-building office development available for sale or lease on Pierson Road. One unit, approximately 1080 square feet, is designed as a doctor's office, featuring eight rooms, a reception area, a waiting room, and three bathrooms. Another unit, approximately 800 square feet, is available for $675 per month and includes multiple offices and a private bathroom. The office building benefits from easy access to US-75 and nearby businesses. The sale includes properties at 5245 and 5265 Pierson Road. The building development includes monument street signage.
Key Highlights
- Five‑unit office development in two buildings.
- Top unit (approx. 1080 SF) perfectly suited for a doctor's office featuring eight rooms, reception, waiting area, and three bathrooms.
- Includes 5245 and 5265 Pierson.
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
$20,711
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
5.18%
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%
$414,220
$414.2K
Cap Rate 7%
$295,871
$295.9K
Cap Rate 9%
$230,122
$230.1K
Market Conditions
NOI Build-Up for 1,880 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
$32.0K $17.04/SF
− Vacancy
−$4.4K −$2.35/SF
EGI
$27.6K $14.69/SF
− OpEx
−$6.9K −$3.67/SF
NOI
$20.7K $11.02/SF
Area
Genesee County, MI
Vacancy
13.80%
Lease Rate
$17.04 /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%
$414,220
Cap Rate 7%
$295,871
Cap Rate 9%
$230,122
Alternative Uses
Best Use
Office B
$295.9K
$258.9K – $345.2K
NOI $20,711 @ 7.0% cap · market cap 5.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$395.6K
$346.2K – $461.5K
NOI $27,692 @ 7.0% cap · market cap 6.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
165
Businesses Nearby
Explore this area
Business Placement
Demographics for 48433, MI
26,688
Population
10,597
Households
2.5
Avg Household Size
44
Median Age
29%
College-Educated
95%
High-School Grad
55.5 sq mi
ZIP Area
481
Density / Sq Mi
$81,301
Median Household Income
$45,126
Median Earnings
$982
Median Rent
$197,400
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Five-unit office development for sale or lease near US-75.
Where is this office building located?
The property is located at 5265 W PIERSON Rd Flushing, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Five‑unit office development in two buildings.; Top unit (approx. 1080 SF) **perfectly suited for a doctor's office** featuring eight rooms, reception, waiting area, and three bathrooms.; Includes 5245 and 5265 Pierson.
