Building Details

Year built 1977

Listing Agency: Century 21 Signature Realty · Century 21 Real Estate j***@c21signaturerealty.com Show Phone

Listed By: Zachary Florida Show Phone

Added: Nov 18, 2025 Changed: Aug 19 Last Checked: Sep 5 at 8:06AM

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MLS# 50194579

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Investment Insights

Based on property information with market context.

The property includes a 5,040-square-foot retail building constructed in 1977 on 1.1 acres. The existing configuration has been used for hardware and auto-parts retail, providing a commercial base that can continue in a similar format or be adapted to another supported operation. The real estate offering includes the building and acreage; the business is separate.

Located at 7200 E M-71 Highway in Vernon, Michigan, the site is identified by postal code 48476 in Shiawassee County. Water service is provided through a private source. The available land area adds flexibility around the existing retail improvements while keeping the property within a single commercial holding.

Key Highlights

• 5,040‑square‑foot retail building
• 1.1‑acre property
• Configured for hardware and auto‑parts retail

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

$30,577

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

7.19%

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%

$611,540 $611.5K

Cap Rate 7%

$436,814 $436.8K

Cap Rate 9%

$339,744 $339.7K

Market Conditions

NOI Build-Up for 5,040 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

$45.4K $9.00/SF

− Vacancy

−$1.7K −$0.33/SF

EGI

$43.7K $8.67/SF

− OpEx

−$13.1K −$2.60/SF

NOI

$30.6K $6.07/SF

Area

Shiawassee County, MI

Vacancy

3.70%

Lease Rate

$9.00 /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%

$611,540

Cap Rate 7%

$436,814

Cap Rate 9%

$339,744

Alternative Uses

Best Use

Retail

$747.4K

$654.0K – $872.0K (±1% cap)

NOI $52,320 @ 7.0% cap · market cap 12.31%

Second Best

Industrial

$436.8K

$382.2K – $509.6K (±1% cap)

NOI $30,577 @ 7.0% cap · market cap 7.19%

Theoretical Best

Office A

$960.9K

$840.8K – $1.12M (±1% cap)

NOI $67,262 @ 7.0% cap · market cap 15.83%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Location Intelligence

Trade Area within ½ mile

58

Businesses Nearby

2k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Chase Bank Shops & Services

2,139 visits/mo 0.4 miles

Demographics for 48476, MI

706

Population

267

Households

2.6

Avg Household Size

42

Median Age

12%

College-Educated

92%

High-School Grad

0.7 sq mi

ZIP Area

1,009

Density / Sq Mi

$67,857

Median Household Income

$38,083

Median Earnings

$1,063

Median Rent

$122,200

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this retail 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?

Retail space - Existing improvements are configured for hardware and auto-parts retail, with the business offered separately.

Where is this retail space located?

The property is located at 7200 E M-71 Highway Vernon, MI.

What is the asking price?

The asking price for this property is $425,000.

What are key features of this property?

This property features: 5,040‑square‑foot retail building; 1.1‑acre property; Configured for hardware and auto‑parts retail