Updated Medical Office
For Sale
$549,999
10424 Pelham Road, Taylor, MI 48180
Commercially zoned facility with exam rooms, pharmacy infrastructure, parking, and a flexible professional layout.
Property Size2,325 SF
Days on Market47
Property Features for 10424 Pelham Road
General Information
Standard status
Active
Size
2,325 SF
Total Parking Spaces
18
Property subtype
Commercial
Zoning
Commercial
Taxes and HOA fees
Annual Taxes
$9,615
Building Details
Building Size
2,325 SF
Year Built
1950
Listing Agency:
Berkshire Hathaway HomeServices Kee Realty Bham
(313) 327-7636
Listed By:
Jimmy Berry · License #6501441676
(313) 327-7636
Source:
Carolbollo
Added: Jun 22
Changed: Aug 7
Last Checked: Aug 7 at 1:48AM
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 Berkshire Hathaway HomeServices Kee Realty Bham
Investment Insights
Based on property information with market context.
Built in 1950 and located at 10424 Pelham Road in Taylor, this medical office property occupies nearly half an acre within a commercial zoning designation. The interior has been refreshed with new flooring, cabinetry, paint, and contemporary finishes. Its layout includes four exam rooms, a private provider office, laboratory space, a generous reception area, kitchen and break-room space, substantial storage, and an in-house pharmacy setup.
The site sits along a high-traffic corridor and provides approximately 18 parking spaces. The existing configuration supports medical operations while also offering office, wellness, therapy, dental, specialty-service, or administrative applications identified for the property. The combination of established infrastructure, updated interiors, and functional room divisions provides a ready framework for continued healthcare use or another professional operation.
The site sits along a high-traffic corridor and provides approximately 18 parking spaces. The existing configuration supports medical operations while also offering office, wellness, therapy, dental, specialty-service, or administrative applications identified for the property. The combination of established infrastructure, updated interiors, and functional room divisions provides a ready framework for continued healthcare use or another professional operation.
Key Highlights
- Four exam rooms plus a private provider office
- Laboratory area, waiting room, kitchen/break area, and extensive storage
- In‑house pharmacy setup included
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
$24,484
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
4.45%
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%
$489,680
$489.7K
Cap Rate 7%
$349,771
$349.8K
Cap Rate 9%
$272,044
$272.0K
Market Conditions
NOI Build-Up for 2,325 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
$46.6K $20.04/SF
− Vacancy
−$5.8K −$2.49/SF
EGI
$40.8K $17.55/SF
− OpEx
−$16.3K −$7.02/SF
NOI
$24.5K $10.53/SF
Area
Wayne County, MI
Vacancy
12.42%
Lease Rate
$20.04 /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%
$489,680
Cap Rate 7%
$349,771
Cap Rate 9%
$272,044
Alternative Uses
Best Use
Healthcare Medical
$349.8K
$306.1K – $408.1K
NOI $24,484 @ 7.0% cap · market cap 4.45%
Second Best
Office B
$114.3K
$100.1K – $133.4K
NOI $8,004 @ 7.0% cap · market cap 1.46%
Theoretical Best
Specialty Retail
$430.5K
$376.7K – $502.2K
NOI $30,132 @ 7.0% cap · market cap 5.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
236
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48180, MI
63,409
Population
26,741
Households
2.4
Avg Household Size
39
Median Age
16%
College-Educated
87%
High-School Grad
23.6 sq mi
ZIP Area
2,687
Density / Sq Mi
$59,537
Median Household Income
$40,090
Median Earnings
$1,036
Median Rent
$141,200
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?
Medical Office Space - Commercially zoned facility with exam rooms, pharmacy infrastructure, parking, and a flexible professional layout.
Where is this medical office space located?
The property is located at 10424 Pelham Road Taylor, MI.
What is the asking price?
The asking price for this property is $549,999.
What are key features of this property?
This property features: Four exam rooms plus a private provider office; Laboratory area, waiting room, kitchen/break area, and extensive storage; In‑house pharmacy setup included
