Building Details

Building Size 2,560 SF

Listing Agency: The Brokerage Real Estate Enthusiasts w***@thebrokerage.cc Show Phone

Listed By: Luke McLean

Source: Eliterealtymi

Added: Aug 1 Changed: Aug 23 Last Checked: Aug 23 at 3:00AM

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Investment Insights

Based on property information with market context.

This 2560 SF commercial property was previously operated as a bar and restaurant and occupies a corner lot at 9504 Vienna Road in Otisville, Michigan. Its existing restaurant-oriented configuration provides a foundation for continued food-service use, while the property may also support retail, office, event venue, or redevelopment plans, subject to local zoning requirements.

The site is positioned for exposure to passing traffic, with its corner placement contributing to visibility from surrounding approaches. The property’s location and adaptable commercial profile support evaluation by restaurant operators, retail users, office users, and other businesses seeking a freestanding commercial setting.

Key Highlights

• 2560 SF former bar and restaurant property
• Corner‑lot position at 9504 Vienna Road
• Visible location with traffic exposure

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

$22,699

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

5.68%

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%

$453,980 $454.0K

Cap Rate 7%

$324,271 $324.3K

Cap Rate 9%

$252,211 $252.2K

Market Conditions

NOI Build-Up for 2,560 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

$36.9K $14.40/SF

− Vacancy

−$6.6K −$2.58/SF

EGI

$30.3K $11.82/SF

− OpEx

−$7.6K −$2.96/SF

NOI

$22.7K $8.87/SF

Area

Genesee County, MI

Vacancy

17.90%

Lease Rate

$14.40 /SF/Yr

Expense Ratio

25.00%

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%

$453,980

Cap Rate 7%

$324,271

Cap Rate 9%

$252,211

Alternative Uses

Best Use

Specialty Retail

$324.3K

$283.7K – $378.3K (±1% cap)

NOI $22,699 @ 7.0% cap · market cap 5.68%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$538.7K

$471.4K – $628.5K (±1% cap)

NOI $37,708 @ 7.0% cap · market cap 9.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Building Supply Auto Repair Shop HVAC Service Auto Parts Store Garden Center (Bike/Boat/Book/etc) Store

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

34

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 48463, MI

4,423

Population

1,902

Households

2.3

Avg Household Size

49

Median Age

18%

College-Educated

89%

High-School Grad

33.3 sq mi

ZIP Area

133

Density / Sq Mi

$69,893

Median Household Income

$38,451

Median Earnings

$835

Median Rent

$179,000

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

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

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

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Former bar and restaurant positioned on a visible corner lot with potential for several commercial uses, subject to local zoning.

Where is this conventional restaurant located?

The property is located at 9504 Vienna Road Otisville, MI.

What is the asking price?

The asking price for this property is $399,900.

What are key features of this property?

This property features: 2560 SF former bar and restaurant property; Corner‑lot position at 9504 Vienna Road; Visible location with traffic exposure