Multi-Tenant Office/Warehouse Investment
For Sale
Contact for pricing
1484 Straits Dr, Bay City, MI 48706
Multi-tenant office building in Valley Center Technology Park.
Property Size18,750 SF
Price / SF$91.20
Days on Market1118
Property Features for 1484 Straits Dr
General Information
Standard status
Active
Size
18,750 SF
Property subtype
Office, Industrial
Zoning
Industrial
Listing Agency:
Trademark Commercial Group
Listed By:
Gretchen Witherspoon · License #MI 6501316390
(989) 792-2192
Source:
Crexi
Added: Aug 17, 2023
Changed: Aug 25
Last Checked: Sep 7 at 1:07PM
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 Trademark Commercial Group
Investment Insights
Based on property information with market context.
This multi-tenant professional office building is located in Bay County’s Valley Center Technology Park at US-10 and Mackinaw Road. The property features seven units, with one currently vacant. The complex consists primarily of office space with some tech/warehouse space. It was originally constructed with six overhead doors in the rear. The property is situated in the heart of the Great Lakes Bay Region, providing convenient access to Saginaw, Bay City, and Midland. The updated capitalization rate is 11%.
Key Highlights
- High 11% Cap Rate
- Multi‑tenant professional office building located in Valley Center Technology Park
- Easy access to Saginaw, Bay City, and Midland
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
$114,956
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
6.72%
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%
$2,299,120
$2.3M
Cap Rate 7%
$1,642,229
$1.6M
Cap Rate 9%
$1,277,289
$1.3M
Market Conditions
NOI Build-Up for 18,750 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
$143.3K $7.64/SF
− Vacancy
−$8.0K −$0.43/SF
EGI
$135.2K $7.21/SF
− OpEx
−$20.3K −$1.08/SF
NOI
$115.0K $6.13/SF
Area
Bay County, MI
Vacancy
5.59%
Lease Rate
$7.64 /SF/Yr
Expense Ratio
15.00%
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%
$2,299,120
Cap Rate 7%
$1,642,229
Cap Rate 9%
$1,277,289
Alternative Uses
Best Use
Office B
$2.55M
$2.23M – $2.97M
NOI $178,200 @ 7.0% cap · market cap 10.42%
Second Best
Warehouse
$1.64M
$1.44M – $1.92M
NOI $114,956 @ 7.0% cap · market cap 6.72%
Theoretical Best
Office A
$3.39M
$2.97M – $3.96M
NOI $237,600 @ 7.0% cap · market cap 13.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
78
Businesses Nearby
Explore this area
Business Placement
Demographics for 48706, MI
39,381
Population
18,163
Households
2.2
Avg Household Size
45
Median Age
24%
College-Educated
93%
High-School Grad
66.3 sq mi
ZIP Area
594
Density / Sq Mi
$61,908
Median Household Income
$40,151
Median Earnings
$887
Median Rent
$142,300
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?
Office building - Multi-tenant office building in Valley Center Technology Park.
Where is this office building located?
The property is located at 1484 Straits Dr Bay City, MI.
What is the asking price?
The asking price for this property is $1,710,000.
What are key features of this property?
This property features: High 11% Cap Rate; Multi‑tenant professional office building located in Valley Center Technology Park; Easy access to Saginaw, Bay City, and Midland
