Retail Building on Michigan
For Sale
$375,000
856 Michigan Street NE, Grand Rapids, MI 49503
Free-standing retail building with frontage and parking near US-196.
Property Size1,000 SF
Days on Market168
Property Features for 856 Michigan Street NE
General Information
Standard status
Active
Size
1,000 SF
Property subtype
Retail
Building Details
Building Size
1,000 SF
Year Built
1946
Listing Agency:
Signature Associates
(616) 822-6310
Listed By:
Joe Rizqallah
(616) 822-6310
Source:
Tcnworldwide
Added: Mar 6
Changed: Aug 15
Last Checked: Aug 20 at 5:38AM
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 Signature Associates
Investment Insights
Based on property information with market context.
This is a free-standing retail building situated along Michigan Avenue. The site offers frontage and signage, accompanied by 10 parking spaces. Located less than a half-mile from US-196, the property is zoned TN-TBA, suitable for various uses including coffee shops, cafes, restaurants, bars, clothing stores, banks, general retail, and offices.
Key Highlights
- Prime location on busy Michigan Avenue.
- Less than 1/2 mile to US‑196.
- Ample frontage and great signage.
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
$14,496
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
3.87%
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%
$289,920
$289.9K
Cap Rate 7%
$207,086
$207.1K
Cap Rate 9%
$161,067
$161.1K
Market Conditions
NOI Build-Up for 1,000 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
$22.0K $21.96/SF
− Vacancy
−$1.3K −$1.25/SF
EGI
$20.7K $20.71/SF
− OpEx
−$6.2K −$6.21/SF
NOI
$14.5K $14.50/SF
Area
Grand Rapids, MI
Vacancy
5.70%
Lease Rate
$21.96 /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%
$289,920
Cap Rate 7%
$207,086
Cap Rate 9%
$161,067
Alternative Uses
Best Use
Retail
$207.1K
$181.2K – $241.6K
NOI $14,496 @ 7.0% cap · market cap 3.87%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$232.1K
$203.1K – $270.8K
NOI $16,245 @ 7.0% cap · market cap 4.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
953
Businesses Nearby
196k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 45%
Dining 36%
Home Improvements & Furnishings 6%
Apparel 4%
Speedway
Shops & Services
27,071 visits/mo
0.4 miles
Circle K
Shops & Services
21,217 visits/mo
0.5 miles
Starbucks
Dining
18,679 visits/mo
0.4 miles
Shell
Shops & Services
18,078 visits/mo
0.4 miles
Wendy's
Dining
16,215 visits/mo
0.3 miles
Demographics for 49503, MI
39,344
Population
19,017
Households
2.1
Avg Household Size
30
Median Age
44%
College-Educated
88%
High-School Grad
7.3 sq mi
ZIP Area
5,390
Density / Sq Mi
$61,734
Median Household Income
$36,694
Median Earnings
$1,207
Median Rent
$224,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Free-standing retail building with frontage and parking near US-196.
Where is this retail space located?
The property is located at 856 Michigan Street NE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Prime location on busy Michigan Avenue.; Less than 1/2 mile to US‑196.; Ample frontage and great signage.
