Flex Space with Overhead
For Sale
$275,000
10538 JOY Rd, Detroit, MI 48204
Adaptable commercial building with an oversized overhead door and an additional adjoining lot included.
Property Size3,128 SF
Lot Size0.09 Acres
Price / SF$87.92
Days on Market125
Property Features for 10538 JOY Rd
General Information
Standard status
Active
Size
3,128 SF
Lot size
0.09 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,319
Amenities
Large 12 Ft Overhead Door
Building Details
Year Built
1936
Buildings
1
Building Size
3,128 SF
Listing Agency:
Sine & Monaghan LLC
(313) 820-5428
Listed By:
Michael DeFauw · License #6501387091
(313) 820-5428
Source:
Elliman
Added: Apr 28
Changed: Aug 30
Last Checked: Aug 30 at 12:50PM
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 Sine & Monaghan LLC
Investment Insights
Based on property information with market context.
This Detroit flex property includes a 3128 sq ft building on a 3920 sq ft lot, with an additional adjacent lot conveyed in the sale. A 12 Ft overhead door supports access for commercial, automotive, storage, or other operational needs, while the building’s multi-purpose configuration allows for varied use. Constructed in 1936, the property is located at 10538 JOY Rd in Detroit, MI 48204. WalkScore is 11, BikeScore is 42, and TransitScore is 43.
Key Highlights
- 3128 sq ft building on a 3920 sq ft lot
- Additional adjacent lot included in the sale
- Large 12 Ft overhead door
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
$22,447
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
8.16%
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%
$448,940
$448.9K
Cap Rate 7%
$320,671
$320.7K
Cap Rate 9%
$249,411
$249.4K
Market Conditions
NOI Build-Up for 3,128 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
$37.5K $12.00/SF
− Vacancy
−$3.0K −$0.96/SF
EGI
$34.5K $11.04/SF
− OpEx
−$12.1K −$3.86/SF
NOI
$22.4K $7.18/SF
Area
Detroit, MI
Vacancy
8.00%
Lease Rate
$12.00 /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%
$448,940
Cap Rate 7%
$320,671
Cap Rate 9%
$249,411
Alternative Uses
Best Use
Retail
$550.4K
$481.6K – $642.1K
NOI $38,527 @ 7.0% cap · market cap 14.01%
Second Best
Flex RnD
$320.7K
$280.6K – $374.1K
NOI $22,447 @ 7.0% cap · market cap 8.16%
Theoretical Best
Office A
$690.0K
$603.8K – $805.1K
NOI $48,303 @ 7.0% cap · market cap 17.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
333
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48204, MI
21,738
Population
13,691
Households
1.6
Avg Household Size
37
Median Age
10%
College-Educated
83%
High-School Grad
5.0 sq mi
ZIP Area
4,348
Density / Sq Mi
$32,875
Median Household Income
$26,701
Median Earnings
$970
Median Rent
$53,600
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
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Similar Off Market Nearby
- Clara's Place — 8505 Joy Rd, Detroit, MI 48204
Frequently Asked Questions
What type of property is this?
Flex space - Adaptable commercial building with an oversized overhead door and an additional adjoining lot included.
Where is this flex space located?
The property is located at 10538 JOY Rd Detroit, MI.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: 3128 sq ft building on a 3920 sq ft lot; Additional adjacent lot included in the sale; Large 12 Ft overhead door
