Renovated Medical Office
For Sale
$219,900
7261 GRATIOT RD, Saginaw, MI 48609
Renovated medical office suite with 10 exam rooms and dedicated lobby, reception, and waiting areas.
Property Size2,304 SF
Price / SF$95.44
Days on Market535
Property Features for 7261 GRATIOT RD
General Information
Standard status
Active
Size
2,304 SF
Property subtype
Industrial
Amenities
Central Air
3
14025
Building Details
Year Built
1960
Listing Agency:
The Miller Group
(989) 751-7288
Listed By:
Paul Burback · License #SBR-6501431637
(989) 751-7288
Source:
Xome
Added: Feb 19, 2025
Changed: Aug 8
Last Checked: Aug 8 at 3:46AM
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 The Miller Group
Investment Insights
Based on property information with market context.
This completely renovated office suite is currently operating as a medical practice. Interior improvements include 10 exam rooms, a lobby, reception area, and waiting room, creating a functional layout for patient and guest flow.
The property is available for sale as real estate only. All furniture and supplies are not included in the sale, but may be purchased separately. Please contact the agent for all showings.
The property is available for sale as real estate only. All furniture and supplies are not included in the sale, but may be purchased separately. Please contact the agent for all showings.
Key Highlights
- Completely renovated medical practice operating as a medical office suite
- 10 exam rooms plus dedicated lobby, reception area, and waiting room
- Central Air cooling and heating included
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
$17,438
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
7.93%
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%
$348,760
$348.8K
Cap Rate 7%
$249,114
$249.1K
Cap Rate 9%
$193,756
$193.8K
Market Conditions
NOI Build-Up for 2,304 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
$33.2K $14.40/SF
− Vacancy
−$4.1K −$1.79/SF
EGI
$29.1K $12.61/SF
− OpEx
−$11.6K −$5.05/SF
NOI
$17.4K $7.57/SF
Area
Saginaw County, MI
Vacancy
12.40%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
40.00%
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%
$348,760
Cap Rate 7%
$249,114
Cap Rate 9%
$193,756
Alternative Uses
Best Use
Office B
$322.1K
$281.9K – $375.8K
NOI $22,550 @ 7.0% cap · market cap 10.25%
Second Best
Healthcare Medical
$249.1K
$218.0K – $290.6K
NOI $17,438 @ 7.0% cap · market cap 7.93%
Theoretical Best
Specialty Retail
$425.7K
$372.5K – $496.6K
NOI $29,798 @ 7.0% cap · market cap 13.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
27
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48609, MI
12,082
Population
5,494
Households
2.2
Avg Household Size
50
Median Age
26%
College-Educated
93%
High-School Grad
44.8 sq mi
ZIP Area
270
Density / Sq Mi
$78,800
Median Household Income
$43,865
Median Earnings
$903
Median Rent
$166,400
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Renovated medical office suite with 10 exam rooms and dedicated lobby, reception, and waiting areas.
Where is this medical office space located?
The property is located at 7261 GRATIOT RD Saginaw, MI.
What is the asking price?
The asking price for this property is $219,900.
What are key features of this property?
This property features: Completely renovated medical practice operating as a medical office suite; 10 exam rooms plus dedicated lobby, reception area, and waiting room; Central Air cooling and heating included
