Renovated Medical Office
For Sale
$219,900
7261 Gratiot Road, Saginaw, MI 48609
Existing layout features ten exam rooms plus reception, lobby, and patient waiting areas.
Property Size2,304 SF
Days on Market10
Property Features for 7261 Gratiot Road
General Information
Standard status
Active
Size
2,304 SF
Property subtype
Commercial
Additional Details
Furnished
No
Building Details
Building Size
2,304 SF
Year Built
1960
Listing Agency:
The Miller Group
(989) 751-7288
Listed By:
Paul Burback · License #6506048895
Source:
Erareardonrealty
Added: Aug 21
Changed: Aug 28
Last Checked: Aug 28 at 11:31AM
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 medical office property at 7261 Gratiot Road in Saginaw has a fully renovated interior and is currently operating as a medical practice. The existing configuration includes ten exam rooms along with reception, a lobby, and a dedicated waiting area.
The real estate is offered for sale without the furniture or supplies currently used in the practice. Those items may be purchased separately. The property’s current medical-office setup also provides a defined framework for other business uses identified by prospective occupants.
The real estate is offered for sale without the furniture or supplies currently used in the practice. Those items may be purchased separately. The property’s current medical-office setup also provides a defined framework for other business uses identified by prospective occupants.
Key Highlights
- Fully renovated interior
- Ten exam rooms
- Reception, lobby, and waiting area
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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
248
Businesses Nearby
Under-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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Existing layout features ten exam rooms plus reception, lobby, and patient waiting areas.
Where is this medical office space located?
The property is located at 7261 Gratiot Road 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: Fully renovated interior; Ten exam rooms; Reception, lobby, and waiting area
