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7202 Michigan Rd, Indianapolis, IN 46268
High-traffic retail property with strong demographics and national retailer adjacency.
Property Size10,125 SF
Lot Size1.02 Acres
Price / SF$285.43
Days on Market157
Property Features for 7202 Michigan Rd
General Information
Standard status
Active
Size
10,125 SF
Lot size
1.02 Acres
Property subtype
Retail
Investment Type
Owner/User
Building Details
Year Built
2001
Listing Agency:
Kidder Matthews
Listed By:
Calvin Lee · License #CA 01210501
Source:
Crexi
Added: Mar 18
Changed: Aug 10
Last Checked: Aug 21 at 4:46PM
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 Kidder Matthews
Investment Insights
Based on property information with market context.
This 10,125-square-foot retail building is situated on 1.02 acres at the signalized hard corner of North Michigan Street and West 71st Street in Indianapolis. The location benefits from high visibility, with approximately 60,500 vehicles passing the site daily. Its proximity to Interstate 465, which sees over 135,000 cars per day, enhances accessibility. The property is located in a densely populated area with over 178,315 residents within a five-mile radius and an average household income of $87,500 in the surrounding area. The property's location is adjacent to major national retailers, including Walmart Supercenter, Costco, Trader Joe's, Lowe's, and Sam's Club. This creates a strong retail environment that attracts consistent traffic. The property offers potential for stable cash flow in the retail sector due to Indianapolis's strong economic fundamentals and diverse employment base anchored by healthcare, logistics, and technology sectors.
Key Highlights
- High‑traffic location: Situated at a signalized hard corner with approximately 60,500 vehicles per day.
- Strong demographics: Densely populated infill location with over 178,315 residents within a five‑mile radius and an average household income of $87,500.
- Excellent accessibility: Proximity to Interstate 465, carrying over 135,000 cars per day.
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
$108,949
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
3.77%
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%
$2,178,980
$2.2M
Cap Rate 7%
$1,556,414
$1.6M
Cap Rate 9%
$1,210,544
$1.2M
Market Conditions
NOI Build-Up for 10,125 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
$170.1K $16.80/SF
− Vacancy
−$14.5K −$1.43/SF
EGI
$155.6K $15.37/SF
− OpEx
−$46.7K −$4.61/SF
NOI
$108.9K $10.76/SF
Area
Indianapolis, IN
Vacancy
8.50%
Lease Rate
$16.80 /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%
$2,178,980
Cap Rate 7%
$1,556,414
Cap Rate 9%
$1,210,544
Alternative Uses
Best Use
Retail
$1.56M
$1.36M – $1.82M
NOI $108,949 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.52M
$2.21M – $2.94M
NOI $176,418 @ 7.0% cap · market cap 6.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
351
Businesses Nearby
Explore this area
Business Placement
Demographics for 46268, IN
26,353
Population
11,904
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
91%
High-School Grad
12.7 sq mi
ZIP Area
2,075
Density / Sq Mi
$63,322
Median Household Income
$41,596
Median Earnings
$1,171
Median Rent
$208,500
Median Home Value
Market
Vacancy Rate% for Retail in Indianapolis, IN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - High-traffic retail property with strong demographics and national retailer adjacency.
Where is this retail space located?
The property is located at 7202 Michigan Rd Indianapolis, IN.
What is the asking price?
The asking price for this property is $2,890,000.
What are key features of this property?
This property features: High‑traffic location: Situated at a signalized hard corner with approximately 60,500 vehicles per day.; Strong demographics: Densely populated infill location with over 178,315 residents within a five‑mile radius and an average household income of $87,500.; Excellent accessibility: Proximity to Interstate 465, carrying over 135,000 cars per day.
