Downtown Muskegon Commercial
For Sale
$159,000
986 Pine Street, Muskegon, MI 49442
Versatile commercial building in downtown Muskegon, ideal for office space.
Property Size1,007 SF
Price / SF$157.89
Days on Market191
Property Features for 986 Pine Street
General Information
Standard status
Active
Size
1,007 SF
Total Parking Spaces
1
Property subtype
Commercial
Lease Term
Cash, Conventional
Taxes and HOA fees
Annual Taxes
$188
Building Details
Building Size
1,007 SF
Year Built
1910
Units
1
Listing Agency:
Medendorp Real Estate Group
(231) 206-3367
Listed By:
David Medendorp · License #6505367065
(231) 206-3367
Source:
Sabudarealty
Added: Feb 14
Changed: Aug 23
Last Checked: Aug 23 at 9:38AM
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 Medendorp Real Estate Group
Investment Insights
Based on property information with market context.
Located at 986 Pine Street, this commercial building is positioned directly across from the Muskegon County building and courthouse. The location offers visibility and convenience. It is suitable for professional office space, legal, medical, nonprofit, or service-based uses. The property is situated steps from downtown Muskegon, providing access to restaurants, shops, and government offices, as well as main traffic corridors. The location is central, accessible, and connected to downtown activity. The bike score is 66, indicating it is bikeable, and the walk score is 41, indicating car-dependent accessibility.
Key Highlights
- Prime downtown Muskegon location directly across from the Muskegon County building and courthouse.
- Exceptional visibility and accessibility.
- Ideal for professional office space, legal, medical, nonprofit, or service‑based uses.
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
$11,093
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
6.98%
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%
$221,860
$221.9K
Cap Rate 7%
$158,471
$158.5K
Cap Rate 9%
$123,256
$123.3K
Market Conditions
NOI Build-Up for 1,007 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
$17.2K $17.04/SF
− Vacancy
−$2.4K −$2.35/SF
EGI
$14.8K $14.69/SF
− OpEx
−$3.7K −$3.67/SF
NOI
$11.1K $11.02/SF
Area
Muskegon County, MI
Vacancy
13.80%
Lease Rate
$17.04 /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%
$221,860
Cap Rate 7%
$158,471
Cap Rate 9%
$123,256
Alternative Uses
Best Use
Office B
$158.5K
$138.7K – $184.9K
NOI $11,093 @ 7.0% cap · market cap 6.98%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$9.46M
$8.27M – $11.03M
NOI $661,974 @ 7.0% cap · market cap 416.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,191
Businesses Nearby
Explore this area
Business Placement
Demographics for 49442, MI
45,342
Population
17,759
Households
2.6
Avg Household Size
37
Median Age
11%
College-Educated
87%
High-School Grad
41.0 sq mi
ZIP Area
1,106
Density / Sq Mi
$50,069
Median Household Income
$33,257
Median Earnings
$889
Median Rent
$116,100
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?
Office units - Versatile commercial building in downtown Muskegon, ideal for office space.
Where is this office units located?
The property is located at 986 Pine Street Muskegon, MI.
What is the asking price?
The asking price for this property is $159,000.
What are key features of this property?
This property features: Prime downtown Muskegon location directly across from the Muskegon County building and courthouse.; Exceptional visibility and accessibility.; Ideal for professional office space, legal, medical, nonprofit, or service‑based uses.
