Building Details

Building Size 2,956 SF

Year Built 9999

Buildings 1

Stories 1

Units 1

Listing Agency: Keller Williams Professionals a***@gloveragency.com Show Phone

Listed By: Jeffrey Glover · License #6502408794 Show Phone

Source: Buyatthelake

Added: Aug 6 Changed: Aug 7 Last Checked: Aug 12 at 11:57AM

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Investment Insights

Based on property information with market context.

This live-work property combines attached residential quarters with a heated shop designed for varied day-to-day functions. The shop includes multiple usable areas, while the adjoining living space places residential accommodation directly beside the workspace.

Access from both the front and rear supports movement of vehicles, equipment, and materials through the property. Located at 6163 N Meridian Road in Hope, Michigan, the layout accommodates an integrated residential and workspace arrangement without separating the two functions.

Key Highlights

• Heated shop with multiple usable areas
• Attached residential space beside the workspace
• Front and rear access points

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

$20,175

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

8.59%

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%

$403,500 $403.5K

Cap Rate 7%

$288,214 $288.2K

Cap Rate 9%

$224,167 $224.2K

Market Conditions

NOI Build-Up for 2,956 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

$35.5K $12.00/SF

− Vacancy

−$3.2K −$1.08/SF

EGI

$32.3K $10.92/SF

− OpEx

−$12.1K −$4.10/SF

NOI

$20.2K $6.83/SF

Area

Midland County, MI

Vacancy

9.00%

Lease Rate

$12.00 /SF/Yr

Expense Ratio

37.50%

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%

$403,500

Cap Rate 7%

$288,214

Cap Rate 9%

$224,167

Alternative Uses

Best Use

Flex RnD

$533.5K

$466.8K – $622.5K (±1% cap)

NOI $37,347 @ 7.0% cap · market cap 15.89%

Second Best

Office B

$396.8K

$347.2K – $462.9K (±1% cap)

NOI $27,775 @ 7.0% cap · market cap 11.82%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Live-work space

Suggested Use

Top Pick Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

11

Businesses Nearby

Explore this area Business Placement

Demographics for 48628, MI

1,864

Population

1,061

Households

1.8

Avg Household Size

51

Median Age

26%

College-Educated

94%

High-School Grad

34.1 sq mi

ZIP Area

55

Density / Sq Mi

$89,183

Median Household Income

$43,292

Median Earnings

$1,125

Median Rent

$188,200

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this live-work space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Live-work space - Attached residential quarters support flexible use of the adjoining workspace and shop areas.

Where is this live-work space located?

The property is located at 6163 N Meridian Road Hope, MI.

What is the asking price?

The asking price for this property is $235,000.

What are key features of this property?

This property features: Heated shop with multiple usable areas; Attached residential space beside the workspace; Front and rear access points