Flexible Industrial Flex
For Sale
Contact for pricing
640 Avis Dr, Ann Arbor, MI 48108
Flex space with multiple front door entrances, currently divided into three spaces with flexible reconfiguration options.
Property Size21,365 SF
Price / SF$98.29
Days on Market643
Property Features for 640 Avis Dr
General Information
Standard status
Active
Size
21,365 SF
Property subtype
INDUSTRIAL
Listing Agency:
NAI Farbman - Corporate
(248) 351-4378
Listed By:
Todd Szymczak · License #6501338373
(248) 351-4378
Source:
Moodyscre
Added: Nov 15, 2024
Changed: Aug 11
Last Checked: Aug 20 at 11:50AM
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 NAI Farbman - Corporate
Investment Insights
Based on property information with market context.
640 Avis Drive is a flexible industrial flex space offered for lease or sale, with the current layout divided into three spaces. The suite features four front door entrances, supporting multiple configurations, including combining spaces in various ways or using a single tenant arrangement.
The property is described as being in a park-like setting among major flex and tech users. Access is noted to State Street, I-94, and numerous local retail and services.
The owner is a general contractor and is willing to complete tenant improvements, and the space can be divided into four or combined in any manner a user wants.
The property is described as being in a park-like setting among major flex and tech users. Access is noted to State Street, I-94, and numerous local retail and services.
The owner is a general contractor and is willing to complete tenant improvements, and the space can be divided into four or combined in any manner a user wants.
Key Highlights
- Flex space at 640 Avis Drive offers multiple front door entrances—currently divided into 3 spaces.
- 4 front door entrances allow flexible layout options, including configurations into 4 spaces or a single tenant space.
- Space is available for lease or sale.
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
$109,115
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
5.20%
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%
$2,182,300
$2.2M
Cap Rate 7%
$1,558,786
$1.6M
Cap Rate 9%
$1,212,389
$1.2M
Market Conditions
NOI Build-Up for 21,365 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
$164.1K $7.68/SF
− Vacancy
−$8.2K −$0.38/SF
EGI
$155.9K $7.30/SF
− OpEx
−$46.8K −$2.19/SF
NOI
$109.1K $5.11/SF
Area
Ann Arbor, MI
Vacancy
5.00%
Lease Rate
$7.68 /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%
$2,182,300
Cap Rate 7%
$1,558,786
Cap Rate 9%
$1,212,389
Alternative Uses
Best Use
Flex RnD
$2.91M
$2.55M – $3.39M
NOI $203,643 @ 7.0% cap · market cap 9.70%
Second Best
Industrial
$1.56M
$1.36M – $1.82M
NOI $109,115 @ 7.0% cap · market cap 5.20%
Theoretical Best
Office A
$4.72M
$4.13M – $5.50M
NOI $330,299 @ 7.0% cap · market cap 15.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
272
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48108, MI
26,639
Population
12,508
Households
2.1
Avg Household Size
37
Median Age
65%
College-Educated
96%
High-School Grad
16.8 sq mi
ZIP Area
1,586
Density / Sq Mi
$80,425
Median Household Income
$46,434
Median Earnings
$1,316
Median Rent
$378,300
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 - Flex space with multiple front door entrances, currently divided into three spaces with flexible reconfiguration options.
Where is this flex space located?
The property is located at 640 Avis Dr Ann Arbor, MI.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: Flex space at 640 Avis Drive offers multiple front door entrances—currently divided into 3 spaces.; 4 front door entrances allow flexible layout options, including configurations into 4 spaces or a single tenant space.; Space is available for lease or sale.
