Two Freestanding Retail
For Sale
$385,000
1114 CATALPA DR, Royal Oak, MI 48067
Two freestanding retail buildings in Neighborhood Business II zoning with parking behind and tenants on month-to-month leases.
Property Size2,000 SF
Price / SF$192.50
Days on Market59
Property Features for 1114 CATALPA DR
General Information
Standard status
Active
Size
2,000 SF
Property subtype
Industrial
Amenities
3
50174.05
Building Details
Year Built
19
Listing Agency:
RE/MAX First
(586) 662-4444
Listed By:
Robert Coburn · License #6501265468
(586) 662-4444
Source:
Xome
Added: Jun 15
Changed: Aug 8
Last Checked: Aug 11 at 5:17AM
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 offering features two freestanding commercial/retail buildings located in Royal Oak. The property is zoned “Neighborhood Business II,” which allows for a wide variety of uses. Current tenants are on month-to-month leases.
On-site parking is available behind the buildings. The owner also owns adjacent buildings and would entertain selling all three parcels that contain four separate buildings as a package.
The opportunity presents two distinct storefront buildings for buyers seeking a small, multi-building retail configuration with existing occupancy on flexible lease terms.
On-site parking is available behind the buildings. The owner also owns adjacent buildings and would entertain selling all three parcels that contain four separate buildings as a package.
The opportunity presents two distinct storefront buildings for buyers seeking a small, multi-building retail configuration with existing occupancy on flexible lease terms.
Key Highlights
- Two freestanding commercial/retail buildings in Royal Oak, zoned “Neighborhood Business II” for a wide variety of uses
- Current tenants are on month‑to‑month leases
- Parking is available behind the buildings
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
$21,521
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
5.59%
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%
$430,420
$430.4K
Cap Rate 7%
$307,443
$307.4K
Cap Rate 9%
$239,122
$239.1K
Market Conditions
NOI Build-Up for 2,000 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
$33.6K $16.80/SF
− Vacancy
−$2.9K −$1.43/SF
EGI
$30.7K $15.37/SF
− OpEx
−$9.2K −$4.61/SF
NOI
$21.5K $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%
$430,420
Cap Rate 7%
$307,443
Cap Rate 9%
$239,122
Alternative Uses
Best Use
Retail
$307.4K
$269.0K – $358.7K
NOI $21,521 @ 7.0% cap · market cap 5.59%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$431.4K
$377.5K – $503.3K
NOI $30,197 @ 7.0% cap · market cap 7.84%
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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- Perennial Accents — 1322 catalpa dr, royal oak, mi 48067
Frequently Asked Questions
What type of property is this?
Storefront property - Two freestanding retail buildings in Neighborhood Business II zoning with parking behind and tenants on month-to-month leases.
Where is this storefront property located?
The property is located at 1114 CATALPA DR 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: Two freestanding commercial/retail buildings in Royal Oak, zoned “Neighborhood Business II” for a wide variety of uses; Current tenants are on month‑to‑month leases; Parking is available behind the buildings
