Retail/Office Building on State
For Sale
Contact for pricing
17868 IN-23, South Bend, IN 46635
Retail/office building with high visibility and development potential.
Property Size4,164 SF
Lot Size0.72 Acres
Price / SF$139.29
Days on Market1149
Property Features for 17868 IN-23
General Information
Standard status
Active
Size
4,164 SF
Class
B
Lot size
0.72 Acres
Property subtype
Office
Zoning
O-office
Building Details
Year Built
1948
Year Renovated
1985
Listing Agency:
NAI Cressy - Mishawaka
Listed By:
Ryan Gableman · License #IN RB14049453
(574) 215-0336
Source:
Crexi
Added: Jul 14, 2023
Changed: Aug 25
Last Checked: Sep 2 at 10:24AM
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 NAI Cressy - Mishawaka
Investment Insights
Based on property information with market context.
This 4,164 square foot building is configured for two retail or office occupants. A portion of the building is currently leased to a hair salon, while the other portion is vacant. The property features monument signage, two curb cuts, and on-site parking. Situated on a 0.72-acre parcel with approximately 215 feet of frontage on State Road 23, the property offers high visibility. It is located minutes from the University of Notre Dame and enjoys excellent frontage on State Road 23. The property is east of the newest developments along the SR 23 / South Bend Avenue corridor, closer to the University of Notre Dame, which includes several mixed-use retail/office and apartment developments currently under construction.
Key Highlights
- Excellent visibility and frontage (215’) on State Road 23.
- Prime location minutes from the University of Notre Dame.
- 4,164 SF building configured for two retail/office occupants.
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
$40,924
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
7.06%
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%
$818,480
$818.5K
Cap Rate 7%
$584,629
$584.6K
Cap Rate 9%
$454,711
$454.7K
Market Conditions
NOI Build-Up for 4,164 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
$62.5K $15.00/SF
− Vacancy
−$4.0K −$0.96/SF
EGI
$58.5K $14.04/SF
− OpEx
−$17.5K −$4.21/SF
NOI
$40.9K $9.83/SF
Area
South Bend, IN
Vacancy
6.40%
Lease Rate
$15.00 /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%
$818,480
Cap Rate 7%
$584,629
Cap Rate 9%
$454,711
Alternative Uses
Best Use
Office B
$779.5K
$682.1K – $909.4K
NOI $54,565 @ 7.0% cap · market cap 9.41%
Second Best
Retail
$584.6K
$511.6K – $682.1K
NOI $40,924 @ 7.0% cap · market cap 7.06%
Theoretical Best
Office A
$1.05M
$921.8K – $1.23M
NOI $73,741 @ 7.0% cap · market cap 12.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
307
Businesses Nearby
Explore this area
Business Placement
Demographics for 46635, IN
6,420
Population
2,913
Households
2.2
Avg Household Size
45
Median Age
39%
College-Educated
89%
High-School Grad
3.1 sq mi
ZIP Area
2,071
Density / Sq Mi
$79,416
Median Household Income
$44,505
Median Earnings
$942
Median Rent
$193,100
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?
Retail space - Retail/office building with high visibility and development potential.
Where is this retail space located?
The property is located at 17868 IN-23 South Bend, IN.
What is the asking price?
The asking price for this property is $580,000.
What are key features of this property?
This property features: Excellent visibility and frontage (215’) on State Road 23.; Prime location minutes from the University of Notre Dame.; 4,164 SF building configured for two retail/office occupants.
