Building Details

Year Built 1998

Year Renovated 2021

Buildings 1

Stories 1

Listing Agency: Keystone Commercial Real Estate g***@keystonecres.com Show Phone

Listed By: Greg Newman · License #MI 6501288543

Source: Crexi

Added: Jul 11, 2024 Changed: Aug 19 Last Checked: Aug 28 at 6:52PM

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Investment Insights

Based on property information with market context.

This 11,082 square foot retail building, formerly occupied by Rite Aid, is located in Durand, Michigan. The property features a drive-thru and an open layout. Its location is just off the freeway, offering prominent visibility and making it suitable for a range of retail businesses. The space can be leased to a single tenant or potentially split for multiple tenants.

Key Highlights

• Strategic location just off the freeway
• Equipped with a drive‑thru
• Large 11,082 SF space adaptable for single or multiple tenants

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

$115,041

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

4.60%

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%

$2,300,820 $2.3M

Cap Rate 7%

$1,643,443 $1.6M

Cap Rate 9%

$1,278,233 $1.3M

Market Conditions

NOI Build-Up for 11,082 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

$171.5K $15.48/SF

− Vacancy

−$7.2K −$0.65/SF

EGI

$164.3K $14.83/SF

− OpEx

−$49.3K −$4.45/SF

NOI

$115.0K $10.38/SF

Area

Shiawassee County, MI

Vacancy

4.20%

Lease Rate

$15.48 /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%

$2,300,820

Cap Rate 7%

$1,643,443

Cap Rate 9%

$1,278,233

Alternative Uses

Best Use

Retail

$1.64M

$1.44M – $1.92M (±1% cap)

NOI $115,041 @ 7.0% cap · market cap 4.60%

Second Best

Specialty Retail

$1.59M

$1.39M – $1.86M (±1% cap)

NOI $111,308 @ 7.0% cap · market cap 4.45%

Theoretical Best

Office A

$2.11M

$1.85M – $2.46M (±1% cap)

NOI $147,897 @ 7.0% cap · market cap 5.92%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Rite Aid Pharmacy Pharmacy Rite Aid Pharmacy Western Union Bank higi Physician Coinhub Bitcoin ATM ... Atm

Suggested Use

Top Pick Real Estate Agency Big Box & Wholesale Store Restaurant Electrical Service Nail Salon Building Supply

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

172

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 48429, MI

8,445

Population

4,059

Households

2.1

Avg Household Size

45

Median Age

15%

College-Educated

91%

High-School Grad

53.2 sq mi

ZIP Area

159

Density / Sq Mi

$60,070

Median Household Income

$39,496

Median Earnings

$833

Median Rent

$151,600

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this drug stores located? What is the asking price? Find similar properties ... What are key features of this property?

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Similar Off Market Nearby

• Rite Aid Pharmacy — 8531 Lansing Rd, Durand, MI 48429

Frequently Asked Questions

What type of property is this?

Drug store - Former Rite Aid retail space with drive-thru in Durand.

Where is this drug store located?

The property is located at 8531 Lansing Rd Durand, MI.

What is the asking price?

The asking price for this property is $2,500,000.

What are key features of this property?

This property features: Strategic location just off the freeway; Equipped with a drive‑thru; Large 11,082 SF space adaptable for single or multiple tenants