Manufacturing and Industrial Property
For Sale
$2,300,000
Pending
31666 W 8 Mile Rd, Farmington Hills, MI 48336
Two buildings on 2.75 acres, ideal for manufacturing.
Property Size22,460 SF
Lot Size2.76 Acres
Days on Market156
Property Features for 31666 W 8 Mile Rd
General Information
Standard status
Pending
Size
22,460 SF
Lot size
2.76 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$24,863
Building Details
Year Built
1966
Units
2
Listing Agency:
Global Real Estate Consulting
(248) 225-7180
Listed By:
James Iodice · License #6502405809
(248) 225-7180
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 12 at 9:39AM
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 Global Real Estate Consulting
Investment Insights
Based on property information with market context.
This property features two buildings situated on a fully fenced 2.75-acre lot. The main building provides approximately 22,460 sq. ft. of space, which includes 3,000 sq. ft. of office space, 15,000 sq. ft. of floor space with ceiling heights up to 24 ft., 1,500 sq. ft. of lab space, and a 3,000 sq. ft. second-floor office and break room. The main building is fully air-conditioned throughout. Access is facilitated by 3 grade-level doors and a loading dock. The secondary building offers approximately 5,687 sq. ft. of space with 4 grade-level doors. The lot has been recently resurfaced and re-striped. The main building has been freshly repainted and features new epoxy floors. This property is suitable for manufacturing needs and offers ample space, modern amenities, and convenient access. The property consists of two parcels: 23-34-426-025 and 23-34-426-038.
Key Highlights
- 22,460 sq. ft. main building featuring 3,000 sq. ft. of office space and 15,000 sq. ft. of floor space with up to 24 ft. ceiling height, plus 1,500 sq. ft. lab space and 3,000 sq. ft. 2nd floor office/break room.
- Fully air‑conditioned main building with new epoxy floors and fresh paint.
- 2.75‑acre fully fenced lot** that has been recently resurfaced and re‑striped.
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
$111,281
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
4.84%
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%
$2,225,620
$2.2M
Cap Rate 7%
$1,589,729
$1.6M
Cap Rate 9%
$1,236,456
$1.2M
Market Conditions
NOI Build-Up for 22,460 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
$165.1K $7.35/SF
− Vacancy
−$6.1K −$0.27/SF
EGI
$159.0K $7.08/SF
− OpEx
−$47.7K −$2.12/SF
NOI
$111.3K $4.95/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /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%
$2,225,620
Cap Rate 7%
$1,589,729
Cap Rate 9%
$1,236,456
Alternative Uses
Best Use
Flex RnD
$3.32M
$2.90M – $3.87M
NOI $232,299 @ 7.0% cap · market cap 10.10%
Second Best
Industrial
$1.59M
$1.39M – $1.85M
NOI $111,281 @ 7.0% cap · market cap 4.84%
Theoretical Best
Specialty Retail
$4.84M
$4.24M – $5.65M
NOI $339,110 @ 7.0% cap · market cap 14.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
872
Businesses Nearby
Explore this area
Business Placement
Demographics for 48336, MI
26,802
Population
12,296
Households
2.2
Avg Household Size
42
Median Age
44%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,882
Density / Sq Mi
$85,325
Median Household Income
$54,077
Median Earnings
$1,141
Median Rent
$247,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Two buildings on 2.75 acres, ideal for manufacturing.
Where is this manufacturing property located?
The property is located at 31666 W 8 Mile Rd Farmington Hills, MI.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: 22,460 sq. ft. main building featuring **3,000 sq. ft. of office space** and **15,000 sq. ft. of floor space** with up to 24 ft. ceiling height, plus 1,500 sq. ft. lab space and 3,000 sq. ft. 2nd floor office/break room.; Fully air‑conditioned main building with new epoxy floors and fresh paint.; 2.75‑acre fully fenced lot** that has been recently resurfaced and re‑striped.
