Medical/Office Space Near Medical
For Sale
Contact for pricing
1425 Michigan St NE, Grand Rapids, MI 49503
Located near Medical Mile with excellent access and parking.
Property Size32,613 SF
Price / SF$133.38
Days on Market722
Property Features for 1425 Michigan St NE
General Information
Standard status
Active
Size
32,613 SF
Class
C
Total Parking Spaces
163
Property subtype
Office
Zoning
SD·NOS
Lease Type
NNN
Building Details
Year Built
1971
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
NAI Wisinski of West Michigan
Listed By:
Jason Makowski, SIOR · License #MI
(616) 262-8532
Source:
Crexi
Added: Sep 14, 2024
Changed: Aug 21
Last Checked: Aug 31 at 10:03PM
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 Wisinski of West Michigan
Investment Insights
Based on property information with market context.
The property, situated near the Michigan and Fuller Interchange, offers convenient access to I-196 and proximity to the Medical Mile. The vacant space is currently configured as an Emergency Veterinarian Clinic, with potential for medical or general office adaptation. The property features a parking ratio of 5.5/1000, providing ample parking. The facility is located on a bus route and has signage on Michigan Street. The property size is 32613 square feet. There are two additional tenants that occupy the building.
Key Highlights
- Excellent access to I‑196 near the Medical Mile.
- High parking ratio of 5.5/1000, offering free parking for employees.
- Located on a bus route and has signage on busy Michigan Street.
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
$382,159
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
8.79%
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%
$7,643,180
$7.6M
Cap Rate 7%
$5,459,414
$5.5M
Cap Rate 9%
$4,246,211
$4.2M
Market Conditions
NOI Build-Up for 32,613 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
$684.9K $21.00/SF
− Vacancy
−$47.9K −$1.47/SF
EGI
$636.9K $19.53/SF
− OpEx
−$254.8K −$7.81/SF
NOI
$382.2K $11.72/SF
Area
Grand Rapids, MI
Vacancy
7.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
40.00%
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%
$7,643,180
Cap Rate 7%
$5,459,414
Cap Rate 9%
$4,246,211
Alternative Uses
Best Use
Healthcare Medical
$5.46M
$4.78M – $6.37M
NOI $382,159 @ 7.0% cap · market cap 8.79%
Second Best
Office B
$4.35M
$3.81M – $5.08M
NOI $304,817 @ 7.0% cap · market cap 7.01%
Theoretical Best
Specialty Retail
$7.57M
$6.62M – $8.83M
NOI $529,798 @ 7.0% cap · market cap 12.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
757
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- BluePearl Pet Hospital — 1425 Michigan St NE Suite F, Grand Rapids, MI 49503
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Located near Medical Mile with excellent access and parking.
Where is this medical office space located?
The property is located at 1425 Michigan St NE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $4,350,000.
What are key features of this property?
This property features: Excellent access to I‑196 near the Medical Mile.; High parking ratio of 5.5/1000, offering free parking for employees.; Located on a bus route and has signage on busy Michigan Street.
