Two-Story Warehouse in Detroit
For Sale
$995,000
Pending
20201 LIVERNOIS Avenue, Detroit, MI 48221
Two-story warehouse with basement, suitable for retail or redevelopment.
Property Size17,820 SF
Lot Size0.58 Acres
Days on Market1099
Property Features for 20201 LIVERNOIS Avenue
General Information
Standard status
Pending
Size
17,820 SF
Lot size
0.58 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1958
Listing Agency:
Brookstone, Realtors LLC
(248) 496-3797
Listed By:
Anna Maria Roediger · License #6501238381
(248) 496-3797
Source:
Exitrealty
Added: Aug 5, 2023
Changed: Jul 6
Last Checked: Aug 6 at 6:28AM
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 Brookstone, Realtors LLC
Investment Insights
Based on property information with market context.
This two-story building with a basement is currently used as a large furniture store, offering new and used furniture and antiques. The price listed is for the building only, with furniture negotiable separately. The property presents various opportunities for redevelopment, including potential uses such as a pub, assisted living facility, a location for a CBD business, or a site for a CVS or Walgreens. Interested parties should verify permitted uses with the city. The building has a total size of 17,820 square feet and is located in Detroit City.
Key Highlights
- Warehouse concept building with flexible usage opportunities.
- High‑visibility location suitable for retail or commercial development.
- Two‑story building with a basement, offering substantial space.
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
$86,671
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
8.71%
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%
$1,733,420
$1.7M
Cap Rate 7%
$1,238,157
$1.2M
Cap Rate 9%
$963,011
$963.0K
Market Conditions
NOI Build-Up for 17,820 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
$130.4K $7.32/SF
− Vacancy
−$6.6K −$0.37/SF
EGI
$123.8K $6.95/SF
− OpEx
−$37.1K −$2.08/SF
NOI
$86.7K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$1,733,420
Cap Rate 7%
$1,238,157
Cap Rate 9%
$963,011
Alternative Uses
Best Use
Retail
$3.14M
$2.74M – $3.66M
NOI $219,488 @ 7.0% cap · market cap 22.06%
Second Best
Apartment 5plus
$2.67M
$2.34M – $3.12M
NOI $186,944 @ 7.0% cap · market cap 18.79%
Theoretical Best
Office A
$3.93M
$3.44M – $4.59M
NOI $275,181 @ 7.0% cap · market cap 27.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
492
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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 Industrial in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Self Storage — 6300 w seven mile rd, detroit, mi 48221
- Self-Storage at U-Haul — 19797 Livernois, Detroit, MI 48221
Frequently Asked Questions
What type of property is this?
Warehouse - Two-story warehouse with basement, suitable for retail or redevelopment.
Where is this warehouse located?
The property is located at 20201 LIVERNOIS Avenue Detroit, MI.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Warehouse concept building with flexible usage opportunities.; High‑visibility location suitable for retail or commercial development.; Two‑story building with a basement, offering substantial space.
