Freestanding Storefront
For Sale
$385,000
1202 Catalpa Dr, Royal Oak, MI 48067
Commercially zoned building with rear parking and immediate occupancy.
Property Size2,812 SF
Price / SF$136.91
Days on Market42
Property Features for 1202 Catalpa Dr
General Information
Standard status
Active
Size
2,812 SF
Zoning
Neighborhood Business II
Building Details
Year Built
1963
Buildings
1
Listing Agency:
RE/MAX First
(586) 662-4444
Listed By:
Robert Coburn · License #6501265468
Source:
Katie-k
Added: Jul 21
Changed: Aug 29
Last Checked: Aug 30 at 7:55PM
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 storefront building offers a commercial retail configuration in Royal Oak. The property was built in 1963 and is zoned Neighborhood Business II, a designation supporting a range of commercial applications. Rear parking provides on-site convenience for occupants and visitors, while immediate occupancy allows a new user to take possession without delay.
Located at 1202 Catalpa Drive, the property places a standalone commercial building in a Royal Oak setting. Its storefront format, commercial zoning, and parking area create a practical foundation for retail-oriented occupancy.
Located at 1202 Catalpa Drive, the property places a standalone commercial building in a Royal Oak setting. Its storefront format, commercial zoning, and parking area create a practical foundation for retail-oriented occupancy.
Key Highlights
- Freestanding storefront building in Royal Oak
- Neighborhood Business II zoning
- Rear parking area
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
$30,258
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
7.86%
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%
$605,160
$605.2K
Cap Rate 7%
$432,257
$432.3K
Cap Rate 9%
$336,200
$336.2K
Market Conditions
NOI Build-Up for 2,812 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
$47.2K $16.80/SF
− Vacancy
−$4.0K −$1.43/SF
EGI
$43.2K $15.37/SF
− OpEx
−$13.0K −$4.61/SF
NOI
$30.3K $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%
$605,160
Cap Rate 7%
$432,257
Cap Rate 9%
$336,200
Alternative Uses
Best Use
Retail
$432.3K
$378.2K – $504.3K
NOI $30,258 @ 7.0% cap · market cap 7.86%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$606.5K
$530.7K – $707.6K
NOI $42,457 @ 7.0% cap · market cap 11.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
663
Businesses Nearby
100k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 55%
Shops & Services 31%
Dining 8%
Home Improvements & Furnishings 4%
Trader Joe's
Groceries
54,811 visits/mo
0.3 miles
O'Reilly Auto Parts
Shops & Services
16,074 visits/mo
0.4 miles
PetSmart
Shops & Services
9,019 visits/mo
0.4 miles
Einstein Bros Bagels
Dining
5,531 visits/mo
0.5 miles
Royal Oak Ford
Shops & Services
3,095 visits/mo
0.4 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.
Similar Off Market Nearby
- Thrifty Florist — 26989 Woodward Ave, Huntington Woods, MI 48070
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- J Costello Designs — 1116 Catalpa Dr, Royal Oak, MI 48067
- Perennial Accents — 1322 catalpa dr, royal oak, mi 48067
Frequently Asked Questions
What type of property is this?
Storefront property - Commercially zoned building with rear parking and immediate occupancy.
Where is this storefront property located?
The property is located at 1202 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: Freestanding storefront building in Royal Oak; Neighborhood Business II zoning; Rear parking area
