Multi-Story Flex Tech Investment
For Sale
Contact for pricing
24800 Northwestern Hwy, Southfield, MI 48075
Multi-story flex tech investment property with secure return potential.
Property Size54,997 SF
Price / SF$154.55
Days on Market563
Property Features for 24800 Northwestern Hwy
General Information
Standard status
Active
Size
54,997 SF
Property subtype
Industrial
Zoning
ERO
Listing Agency:
CBRE
Listed By:
David Hesano · License #MI 6501300653
Source:
Crexi
Added: Jan 23, 2025
Changed: Aug 8
Last Checked: Aug 8 at 12:01PM
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 CBRE
Investment Insights
Based on property information with market context.
This multi-story flex tech investment property represents an adaptive reuse of a former office property. The property is primarily occupied by two tenants, with over 90% occupancy, offering a secure return and potential for upside. The building is situated at the intersection of Northwestern Highway (M-10) and Evergreen Road, centrally located in Oakland County. One tenant, PlayTech Services, provides live-dealer gaming for online betting platforms. The lease is guaranteed by Playtech plc, traded as PYTCF on the London Stock Exchange, with a reported net income of over $105M Euros in 2023. The second tenant is Northwestern Technological Institute, an HVAC training school in operation since 1979. An available 4699-square-foot vacant unit presents further leasing opportunities. Current tenant leases are at rental rates below existing market comparables. The property contains a total of 54997 square feet.
Key Highlights
- Secure investment property boasting over 90% occupancy with two tenants.
- Lease guaranteed by Playtech plc (PYTCF), a publicly traded company with significant net income.
- Located in a central position in affluent Oakland County at the intersection of Northwestern Hwy (M‑10) and Evergreen Rd.
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
$568,823
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
6.69%
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%
$11,376,460
$11.4M
Cap Rate 7%
$8,126,043
$8.1M
Cap Rate 9%
$6,320,256
$6.3M
Market Conditions
NOI Build-Up for 54,997 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
$989.9K $18.00/SF
− Vacancy
−$114.8K −$2.09/SF
EGI
$875.1K $15.91/SF
− OpEx
−$306.3K −$5.57/SF
NOI
$568.8K $10.34/SF
Area
Oakland County, MI
Vacancy
11.60%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
35.00%
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%
$11,376,460
Cap Rate 7%
$8,126,043
Cap Rate 9%
$6,320,256
Alternative Uses
Best Use
Flex RnD
$8.13M
$7.11M – $9.48M
NOI $568,823 @ 7.0% cap · market cap 6.69%
Second Best
Industrial
$3.89M
$3.41M – $4.54M
NOI $272,490 @ 7.0% cap · market cap 3.21%
Theoretical Best
Specialty Retail
$11.86M
$10.38M – $13.84M
NOI $830,367 @ 7.0% cap · market cap 9.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,581
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48075, MI
22,967
Population
10,757
Households
2.1
Avg Household Size
42
Median Age
39%
College-Educated
95%
High-School Grad
7.3 sq mi
ZIP Area
3,146
Density / Sq Mi
$67,630
Median Household Income
$43,417
Median Earnings
$1,284
Median Rent
$218,900
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Multi-story flex tech investment property with secure return potential.
Where is this flex space located?
The property is located at 24800 Northwestern Hwy Southfield, MI.
What is the asking price?
The asking price for this property is $8,500,000.
What are key features of this property?
This property features: Secure investment property boasting over 90% occupancy with two tenants.; Lease guaranteed by Playtech plc (PYTCF), a publicly traded company with significant net income.; Located in a central position in affluent Oakland County at the intersection of Northwestern Hwy (M‑10) and Evergreen Rd.
