Freestanding Retail
For Sale
Contact for pricing
1112 Catalpa Drive, Royal Oak, MI 48067
Free-standing retail building with parking behind and Neighborhood Business II zoning for flexible neighborhood uses.
Property Size2,650 SF
Price / SF$145.28
Days on Market55
Property Features for 1112 Catalpa Drive
General Information
Standard status
Active
Size
2,650 SF
Property subtype
Land
Building Details
Year Built
1962
Listing Agency:
RE/MAX First
(586) 662-4444
Listed By:
Robert Coburn · License #6501265468
Source:
Crexi
Added: Jun 16
Changed: Aug 8
Last Checked: Aug 9 at 11:33AM
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 RE/MAX First
Investment Insights
Based on property information with market context.
This freestanding commercial retail building offers a straightforward option for retail or other neighborhood-oriented concepts. The property is currently occupied by a month-to-month tenant, providing an immediate, working layout rather than vacant space. Zoning is Neighborhood Business II, which allows a wide variety of uses consistent with a neighborhood retail commercial setting.
The building is located in Royal Oak at 1112 Catalpa Drive. A notable convenience for customers and tenants is the parking located behind the building. The owner also owns adjacent buildings and is open to selling all three parcels as a package, which include four separate buildings.
For buyers or operators seeking an owner-occupied, retail-oriented asset in a flexible commercial zoning district, this property provides an operational starting point with month-to-month occupancy. The availability of a multi-parcel package option may also appeal to those looking to acquire additional retail buildings from the same owner alongside this freestanding structure.
The building is located in Royal Oak at 1112 Catalpa Drive. A notable convenience for customers and tenants is the parking located behind the building. The owner also owns adjacent buildings and is open to selling all three parcels as a package, which include four separate buildings.
For buyers or operators seeking an owner-occupied, retail-oriented asset in a flexible commercial zoning district, this property provides an operational starting point with month-to-month occupancy. The availability of a multi-parcel package option may also appeal to those looking to acquire additional retail buildings from the same owner alongside this freestanding structure.
Key Highlights
- Free‑standing commercial/retail building built in 1962
- Neighborhood Business II zoning supports a wide variety of neighborhood business uses
- Current tenant is on a month‑to‑month lease
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
$28,515
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
7.41%
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%
$570,300
$570.3K
Cap Rate 7%
$407,357
$407.4K
Cap Rate 9%
$316,833
$316.8K
Market Conditions
NOI Build-Up for 2,650 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
$44.5K $16.80/SF
− Vacancy
−$3.8K −$1.43/SF
EGI
$40.7K $15.37/SF
− OpEx
−$12.2K −$4.61/SF
NOI
$28.5K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$570,300
Cap Rate 7%
$407,357
Cap Rate 9%
$316,833
Alternative Uses
Best Use
Retail
$407.4K
$356.4K – $475.3K
NOI $28,515 @ 7.0% cap · market cap 7.41%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$571.6K
$500.1K – $666.9K
NOI $40,011 @ 7.0% cap · market cap 10.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
972
Businesses Nearby
66k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 46%
Groceries 25%
Shops & Services 21%
Hotels & Casinos 6%
National Coney Island
Dining
21,012 visits/mo
0.5 miles
Hollywood Market
Groceries
16,247 visits/mo
0.2 miles
Burger King
Dining
8,438 visits/mo
0.4 miles
Speedway
Shops & Services
8,070 visits/mo
0.4 miles
Genisys Credit Union
Shops & Services
5,709 visits/mo
0.3 miles
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Storefront property - Free-standing retail building with parking behind and Neighborhood Business II zoning for flexible neighborhood uses.
Where is this storefront property located?
The property is located at 1112 Catalpa Drive Royal Oak, MI.
What is the asking price?
The asking price for this property is $385,000.
What are key features of this property?
This property features: Free‑standing commercial/retail building built in 1962; Neighborhood Business II zoning supports a wide variety of neighborhood business uses; Current tenant is on a month‑to‑month lease
