Macomb Warehouse/Manufacturing
For Sale
Contact for pricing
46705 Erb Dr, Macomb, MI 48042
20,000 SF building suitable for warehouse or manufacturing.
Property Size20,000 SF
Price / SF$92.50
Days on Market564
Property Features for 46705 Erb Dr
General Information
Standard status
Active
Size
20,000 SF
Property subtype
Office, Industrial
Zoning
M-1
Building Details
Year Built
1990
Listing Agency:
P.A. Commercial Corporate & Investment Real Estate
(248) 663-0506
Listed By:
John Arthurs · License #MI 6501222941
Source:
Crexi
Added: Jan 24, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:43AM
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 P.A. Commercial Corporate & Investment Real Estate
Investment Insights
Based on property information with market context.
This 20,000 square foot building is available for sale or lease and includes 3,600 square feet of office and showroom space. The building can be divided into 11,000 square feet and 9,000 square feet sections, each with separately metered utilities. A 3,600 square foot shop mezzanine is present. The building features a 16-foot clear height and three 12-foot by 14-foot overhead doors. It also includes a large fenced outside storage area and a concrete parking lot, with potential for additional outside storage. The property is suitable for warehouse or manufacturing purposes. It is located at 21 Mile Road and Gratiot Avenue, with proximity to I-94.
Key Highlights
- Divisible 20,000 SF building with separately metered utilities.
- Prime location at 21 Mile Rd & Gratiot Ave, with close proximity to I‑94.
- Includes 3,600 SF of office/showroom 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
$130,952
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
7.08%
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%
$2,619,040
$2.6M
Cap Rate 7%
$1,870,743
$1.9M
Cap Rate 9%
$1,455,022
$1.5M
Market Conditions
NOI Build-Up for 20,000 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
$163.2K $8.16/SF
− Vacancy
−$9.1K −$0.46/SF
EGI
$154.1K $7.70/SF
− OpEx
−$23.1K −$1.16/SF
NOI
$131.0K $6.55/SF
Area
Macomb County, MI
Vacancy
5.60%
Lease Rate
$8.16 /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%
$2,619,040
Cap Rate 7%
$1,870,743
Cap Rate 9%
$1,455,022
Alternative Uses
Best Use
Flex RnD
$3.25M
$2.84M – $3.79M
NOI $227,156 @ 7.0% cap · market cap 12.28%
Second Best
Warehouse
$1.87M
$1.64M – $2.18M
NOI $130,952 @ 7.0% cap · market cap 7.08%
Theoretical Best
Specialty Retail
$3.74M
$3.28M – $4.37M
NOI $262,103 @ 7.0% cap · market cap 14.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
326
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48042, MI
33,398
Population
12,067
Households
2.8
Avg Household Size
42
Median Age
39%
College-Educated
96%
High-School Grad
22.8 sq mi
ZIP Area
1,465
Density / Sq Mi
$125,433
Median Household Income
$61,261
Median Earnings
$1,569
Median Rent
$374,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - 20,000 SF building suitable for warehouse or manufacturing.
Where is this flex space located?
The property is located at 46705 Erb Dr Macomb, MI.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: Divisible 20,000 SF building with separately metered utilities.; Prime location at 21 Mile Rd & Gratiot Ave, with close proximity to I‑94.; Includes 3,600 SF of office/showroom space.
