Two-Tenant Retail Strip
For Sale
Contact for pricing
5400 S Pennsylvania Ave, Lansing, MI 48911
Fully occupied retail strip with long-term tenants in Lansing.
Property Size8,450 SF
Lot Size1.06 Acres
Price / SF$110.65
Days on Market695
Property Features for 5400 S Pennsylvania Ave
General Information
Standard status
Active
Size
8,450 SF
Lot size
1.06 Acres
Property subtype
Office, Retail
Zoning
F COMM
Building Details
Year Built
1985
Listing Agency:
Colliers - Royal Oak/Detroit, Michigan
Listed By:
Jordan Woodcock · License #MI 6501373633
Source:
Crexi
Added: Sep 14, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:27AM
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 Colliers - Royal Oak/Detroit, Michigan
Investment Insights
Based on property information with market context.
This investment opportunity features a two-tenant retail strip located on South Pennsylvania Avenue in Lansing, Michigan. The property includes 8,450 square feet of rentable space situated on a 1.06-acre lot. The building is fully occupied by NovaCare Rehabilitation and PKSA Karate. Recent renovations have been completed to accommodate NovaCare's business and update the exterior. In 2021, PKSA expanded their space by almost 1,000 square feet, with 3% rent increases scheduled every 5 years. The location benefits from a built-in employee base, dense population, and high traffic counts, with nearly 14,000 vehicles passing by daily. Both tenants are well-established in the Michigan market, with NovaCare having 8 locations in the Lansing area and PKSA operating 21 locations throughout the state. NovaCare has been a long-term tenant since 1985, continually extending their lease. PKSA expanded after being open for just over a year.
Key Highlights
- Long‑term tenants: NovaCare has occupied the property since 1985, demonstrating stability.
- Fully occupied retail strip with two established tenants (NovaCare Rehabilitation and PKSA Karate).
- PKSA recently expanded their space in 2021, showing commitment to the location.
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
$76,481
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
8.18%
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%
$1,529,620
$1.5M
Cap Rate 7%
$1,092,586
$1.1M
Cap Rate 9%
$849,789
$849.8K
Market Conditions
NOI Build-Up for 8,450 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
$126.8K $15.00/SF
− Vacancy
−$17.5K −$2.07/SF
EGI
$109.3K $12.93/SF
− OpEx
−$32.8K −$3.88/SF
NOI
$76.5K $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%
$1,529,620
Cap Rate 7%
$1,092,586
Cap Rate 9%
$849,789
Alternative Uses
Best Use
Retail
$1.09M
$956.0K – $1.27M
NOI $76,481 @ 7.0% cap · market cap 8.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.74M
$1.52M – $2.03M
NOI $121,755 @ 7.0% cap · market cap 13.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
654
Businesses Nearby
104k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 42%
Shops & Services 40%
Groceries 11%
Electronics 5%
Menards
Home Improvements & Furnishings
43,223 visits/mo
0.5 miles
Five Below
Shops & Services
23,182 visits/mo
0.4 miles
Dollar Tree
Shops & Services
18,556 visits/mo
0.5 miles
Gordon Food Service
Groceries
11,584 visits/mo
0.4 miles
GameStop
Electronics
2,930 visits/mo
0.4 miles
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.
Frequently Asked Questions
What type of property is this?
Strip mall - Fully occupied retail strip with long-term tenants in Lansing.
Where is this strip mall located?
The property is located at 5400 S Pennsylvania Ave Lansing, MI.
What is the asking price?
The asking price for this property is $935,000.
What are key features of this property?
This property features: Long‑term tenants: NovaCare has occupied the property since 1985, demonstrating stability.; Fully occupied retail strip with two established tenants (NovaCare Rehabilitation and PKSA Karate).; PKSA recently expanded their space in 2021, showing commitment to the location.
