Historical Gem in West
For Sale
$345,000
7546 W MCNICHOLS Rd, Detroit, MI 48221
Historical property in newly developed West 6 Mile Corridor.
Property Size2,110 SF
Lot Size0.05 Acres
Days on Market259
Property Features for 7546 W MCNICHOLS Rd
General Information
Standard status
Active
Size
2,110 SF
Lot size
0.05 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,727
Building Details
Building Size
2,110 SF
Year Built
1934
Listing Agency:
National Realty Centers, Inc
(313) 215-5686
Listed By:
Miranda N Morrow · License #6501339131
(313) 215-5686
Source:
Elliman
Added: Nov 27, 2025
Changed: Aug 9
Last Checked: Aug 13 at 9:06AM
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 National Realty Centers, Inc
Investment Insights
Based on property information with market context.
Located in the Bagley District within the newly developed West 6 Mile Corridor, this historical property presents various opportunities. It is situated two blocks from Livernois Avenue of Fashion and the University of Detroit College, as well as the University District, and is 10 minutes from Downtown Detroit. The property includes a full basement. A grant from the City of Detroit is available to support the re-establishment of the cleaners. Please note that the cleaners equipment is excluded from the sale price but is available separately.
Key Highlights
- Prime location in the newly developed West 6 Mile Corridor, Bagley District.
- Close proximity to Livernois Avenue of Fashion, U of D College, University District, and Downtown Detroit.
- Offers a grant from the city of Detroit to revive the cleaners business.
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
$25,989
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
7.53%
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%
$519,780
$519.8K
Cap Rate 7%
$371,271
$371.3K
Cap Rate 9%
$288,767
$288.8K
Market Conditions
NOI Build-Up for 2,110 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
$39.2K $18.60/SF
− Vacancy
−$2.1K −$1.00/SF
EGI
$37.1K $17.60/SF
− OpEx
−$11.1K −$5.28/SF
NOI
$26.0K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$519,780
Cap Rate 7%
$371,271
Cap Rate 9%
$288,767
Alternative Uses
Best Use
Retail
$371.3K
$324.9K – $433.2K
NOI $25,989 @ 7.0% cap · market cap 7.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$465.5K
$407.3K – $543.1K
NOI $32,583 @ 7.0% cap · market cap 9.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
437
Businesses Nearby
46k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 61%
Shops & Services 33%
Home Improvements & Furnishings 6%
McDonald's
Dining
23,140 visits/mo
0.5 miles
Valero Energy
Shops & Services
6,793 visits/mo
0.5 miles
Little Caesars Pizza
Dining
5,069 visits/mo
0.4 miles
Citgo
Shops & Services
4,296 visits/mo
0.2 miles
Sunoco
Shops & Services
4,122 visits/mo
0.3 miles
Demographics for 48221, MI
38,204
Population
17,452
Households
2.2
Avg Household Size
38
Median Age
29%
College-Educated
90%
High-School Grad
5.2 sq mi
ZIP Area
7,347
Density / Sq Mi
$55,583
Median Household Income
$37,019
Median Earnings
$1,174
Median Rent
$138,700
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Historical property in newly developed West 6 Mile Corridor.
Where is this storefront property located?
The property is located at 7546 W MCNICHOLS Rd Detroit, MI.
What is the asking price?
The asking price for this property is $345,000.
What are key features of this property?
This property features: Prime location in the newly developed West 6 Mile Corridor, Bagley District.; Close proximity to Livernois Avenue of Fashion, U of D College, University District, and Downtown Detroit.; Offers a grant from the city of Detroit to revive the cleaners business.
