Remodeled Mixed-Use Property
For Sale
Contact for pricing
265 S HARRIS RD, Ypsilanti, MI 48198
25,800 SF mixed-use property with warehouse, retail, and office space.
Property Size25,800 SF
Price / SF$113.57
Days on Market2366
Property Features for 265 S HARRIS RD
General Information
Standard status
Active
Size
25,800 SF
Property subtype
Office, Retail, Industrial
Zoning
NB
Occupancy
100%
Investment Type
Owner/User
Net Operating Income
$157,706
Building Details
Year Built
1987
Buildings
3
Stories
1
Units
13
Tenancy
Multi
Listing Agency:
St. Arnold Commercial
(248) 880-9084
Listed By:
Joe Arnold · License #MI Broker license # 417051
Source:
Crexi
Added: Feb 28, 2020
Changed: Aug 8
Last Checked: Aug 18 at 9:41PM
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 St. Arnold Commercial
Investment Insights
Based on property information with market context.
This property features 25,800 square feet of space across three buildings, offering a mix of warehouse or retail space (approximately 22,800 square feet) and office space (approximately 3,000 square feet). Approximately 10,000 square feet is currently vacant. The property has been fully remodeled with extensive interior and exterior updates, including site improvements. Interior renovations feature new access ceilings, new HVAC systems in all buildings, new walls, doors and trim, new floor coverings, new lighting, completely remodeled bathrooms, and fresh paint throughout. Exterior updates include a new exterior EFIS-Dryvit facade, all new roofs, new HVAC systems, new windows, new doors, recent exterior painting, a video camera surveillance system, a new loading dock, new sidewalks, new landscaping, and a new parking lot. There is no deferred maintenance. The property includes seven 10-12' drive-in overhead doors, with all buildings having overhead doors and loading dock access. Located in close proximity to I-94, US23, and Michigan Avenue, the property is approximately 5 minutes from Willow Run Airport and 20 minutes from Detroit Metro Airport. The property is demised to allow for up to 14 separate units for lease, making it suitable for investors.
Key Highlights
- 100% remodeled buildings with extensive interior and exterior updates and no deferred maintenance.
- Potential for up to 14 separate leasable units, ideal for investment.
- 25,800 SF of space including warehouse/retail and office space.
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
$239,476
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
8.17%
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%
$4,789,520
$4.8M
Cap Rate 7%
$3,421,086
$3.4M
Cap Rate 9%
$2,660,844
$2.7M
Market Conditions
NOI Build-Up for 25,800 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
$387.0K $15.00/SF
− Vacancy
−$44.9K −$1.74/SF
EGI
$342.1K $13.26/SF
− OpEx
−$102.6K −$3.98/SF
NOI
$239.5K $9.28/SF
Area
Washtenaw County, MI
Vacancy
11.60%
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%
$4,789,520
Cap Rate 7%
$3,421,086
Cap Rate 9%
$2,660,844
Alternative Uses
Best Use
Office B
$5.69M
$4.97M – $6.63M
NOI $397,991 @ 7.0% cap · market cap 13.58%
Second Best
Retail
$5.01M
$4.39M – $5.85M
NOI $350,816 @ 7.0% cap · market cap 11.97%
Theoretical Best
Office A
$7.58M
$6.63M – $8.84M
NOI $530,654 @ 7.0% cap · market cap 18.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
354
Businesses Nearby
Explore this area
Business Placement
Demographics for 48198, MI
40,067
Population
17,379
Households
2.3
Avg Household Size
36
Median Age
35%
College-Educated
92%
High-School Grad
33.4 sq mi
ZIP Area
1,200
Density / Sq Mi
$63,678
Median Household Income
$36,671
Median Earnings
$1,197
Median Rent
$178,300
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?
Mixed-use property - 25,800 SF mixed-use property with warehouse, retail, and office space.
Where is this mixed-use property located?
The property is located at 265 S HARRIS RD Ypsilanti, MI.
What is the asking price?
The asking price for this property is $2,930,000.
What are key features of this property?
This property features: 100% remodeled buildings with extensive interior and exterior updates and no deferred maintenance.; Potential for up to 14 separate leasable units, ideal for investment.; 25,800 SF of space including warehouse/retail and office space.
