Office Building with State
For Sale
$199,000
59 E St. Joe, Hillsdale, MI 49242
Commercial Sale, Hillsdale, MI
Property Size1,942 SF
Lot Size0.21 Acres
Price / SF$102.47
Days on Market276
Property Features for 59 E St. Joe
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking
10
Interior features
Broadband
Elementary school district
Hillsdale
Middle school district
Hillsdale
High school district
Hillsdale
Subdivision
Hillsdale County - X
Standard status
Active
APN
006-426-328-21
Size
1,942 SF
Lot size
0.21 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Per deed
Tax Annual Amount
3062
Legal Description
Per deed
Utilities
Utilities
Cable Available
Heating system
Forced Air
Building Details
Year built
1995
Floors in Building
1
Number of units
1
Listing Agency:
Spieth & Satow Auctions & Real Estate
(517) 439-2528
Listed By:
Darin W Spieth · License #6501348697
(517) 398-6060
Added: Dec 9, 2025
Changed: Sep 10
Last Checked: Sep 11 at 6:06PM
MLS# 25061268
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building contains 1,942 square feet on a 0.21-acre parcel and was constructed in 1995. The property includes broadband service, forced-air heating, cable availability, and one bathroom. Its compact configuration provides a dedicated commercial setting for office use.
The building is currently under contract with the State of Michigan through August 31, 2028. Located in Hillsdale, Michigan, the property offers an existing contractual arrangement alongside established building systems and utility connectivity.
The building is currently under contract with the State of Michigan through August 31, 2028. Located in Hillsdale, Michigan, the property offers an existing contractual arrangement alongside established building systems and utility connectivity.
Key Highlights
- 1,942‑square‑foot office building on a 0.21‑acre parcel
- Constructed in 1995
- Under contract with the State of Michigan through August 31, 2028
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
$16,821
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
8.45%
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%
$336,420
$336.4K
Cap Rate 7%
$240,300
$240.3K
Cap Rate 9%
$186,900
$186.9K
Market Conditions
NOI Build-Up for 1,942 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
$28.0K $14.40/SF
− Vacancy
−$5.5K −$2.85/SF
EGI
$22.4K $11.55/SF
− OpEx
−$5.6K −$2.89/SF
NOI
$16.8K $8.66/SF
Area
Hillsdale County, MI
Vacancy
19.80%
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%
$336,420
Cap Rate 7%
$240,300
Cap Rate 9%
$186,900
Alternative Uses
Best Use
Office B
$240.3K
$210.3K – $280.4K
NOI $16,821 @ 7.0% cap · market cap 8.45%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$308.6K
$270.0K – $360.0K
NOI $21,600 @ 7.0% cap · market cap 10.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
518
Businesses Nearby
Explore this area
Business Placement
Demographics for 49242, MI
14,812
Population
6,687
Households
2.2
Avg Household Size
38
Median Age
25%
College-Educated
93%
High-School Grad
90.6 sq mi
ZIP Area
163
Density / Sq Mi
$57,813
Median Household Income
$28,886
Median Earnings
$770
Median Rent
$182,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Existing State of Michigan contract runs through August 31, 2028, supporting continued occupancy under the current arrangement.
Where is this office building located?
The property is located at 59 E St. Joe Hillsdale, MI.
What is the asking price?
The asking price for this property is $199,000.
What are key features of this property?
This property features: 1,942‑square‑foot office building on a 0.21‑acre parcel; Constructed in 1995; Under contract with the State of Michigan through August 31, 2028
