Joy Rd Investment
For Sale
Contact for pricing
15142 JOY RD, Detroit, MI 48228
Commercial property with income potential in thriving auto industry area.
Property Size2,062 SF
Lot Size0.14 Acres
Price / SF$87.25
Days on Market707
Property Features for 15142 JOY RD
General Information
Standard status
Active
Size
2,062 SF
Lot size
0.14 Acres
Property subtype
Business for Sale, Retail, Office, Industrial, Land
Zoning
Commercial, Light Industrial, Office, Residential
Occupancy
60%
Investment Type
Net Lease
Net Operating Income
$29,000
Building Details
Year Built
1931
Year Renovated
2022
Stories
2
Tenancy
Multi
Listing Agency:
RE/MAX Leading Edge
(313) 777-2700
Listed By:
Nader Rammal · License #MI 6501389142
Source:
Crexi
Added: Sep 5, 2024
Changed: Aug 8
Last Checked: Aug 12 at 4:01AM
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 Leading Edge
Investment Insights
Based on property information with market context.
This commercial real estate package features three parcels, including a separate upper efficiency apartment, situated on a 60 x 100 lot. The property is located in an area known for its thriving auto industry and is just minutes from Dearborn. Modern updates have been made, including new electrical, plumbing, and roofing, along with two new door bays. The apartment has a separate entrance and utilities. The property is currently generating $2,500 in monthly income from a detail shop and rented apartment. There is potential for expansion. Security fencing is in place, and there is parking for up to 18 cars. The additional vacant space is suitable for storage, warehousing, or further development. The property size is 2,062 square feet.
Key Highlights
- Prime commercial real estate package with three parcels on a 60 x 100 lot.
- Currently generating $2,500 in monthly income from detail shop and apartment.
- Separate upper efficiency apartment with separate entrance and utilities.
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
$14,693
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
8.17%
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%
$293,860
$293.9K
Cap Rate 7%
$209,900
$209.9K
Cap Rate 9%
$163,256
$163.3K
Market Conditions
NOI Build-Up for 2,062 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
$18.1K $8.76/SF
− Vacancy
−$777 −$0.38/SF
EGI
$17.3K $8.38/SF
− OpEx
−$2.6K −$1.26/SF
NOI
$14.7K $7.13/SF
Area
ZIP 48228
Vacancy
4.30%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
15.00%
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%
$293,860
Cap Rate 7%
$209,900
Cap Rate 9%
$163,256
Alternative Uses
Best Use
Retail
$362.8K
$317.5K – $423.3K
NOI $25,397 @ 7.0% cap · market cap 14.12%
Second Best
Mixed Use
$338.0K
$295.8K – $394.4K
NOI $23,661 @ 7.0% cap · market cap 13.15%
Theoretical Best
Office A
$423.5K
$370.6K – $494.1K
NOI $29,647 @ 7.0% cap · market cap 16.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
408
Businesses Nearby
Explore this area
Business Placement
Demographics for 48228, MI
53,893
Population
22,620
Households
2.4
Avg Household Size
31
Median Age
11%
College-Educated
78%
High-School Grad
8.9 sq mi
ZIP Area
6,055
Density / Sq Mi
$31,485
Median Household Income
$27,533
Median Earnings
$1,086
Median Rent
$55,100
Median Home Value
Market
Vacancy Rate% for Office in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial property with income potential in thriving auto industry area.
Where is this mixed-use property located?
The property is located at 15142 JOY RD Detroit, MI.
What is the asking price?
The asking price for this property is $179,900.
What are key features of this property?
This property features: Prime commercial real estate package with three parcels on a 60 x 100 lot.; Currently generating $2,500 in monthly income from detail shop and apartment.; Separate upper efficiency apartment with separate entrance and utilities.
