Updated Medical Office
For Sale
$249,000
16000 W Warren Ave, Detroit, MI 48228
Recently updated medical office building suitable for various uses.
Property Size1,872 SF
Price / SF$133.01
Days on Market131
Property Features for 16000 W Warren Ave
General Information
Standard status
Active
Size
1,872 SF
Property subtype
Commercial
Building Details
Year Built
1967
Listing Agency:
Real Estate One-Dbn Hts/Dbn
(313) 565-3200
Listed By:
Ali M Shariff · License #6501303931
(313) 565-3200
Source:
Elliman
Added: Apr 13
Changed: Jul 10
Last Checked: Aug 20 at 9:49AM
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 Real Estate One-Dbn Hts/Dbn
Investment Insights
Based on property information with market context.
This recently updated building on W Warren Ave is suitable for medical office use, as well as law offices, real estate offices, insurance agencies, veterinarian offices, tattoo parlors, chiropractors, and pharmacies. The 1872 square foot property features a reception area, four exam rooms, a private office, a large office or workspace area, a bathroom, and a kitchen or break room. A long, wide hall with storage is accessible from the rear entrance. The property is brightly lit with glass block windows and includes a multi-camera surveillance system. It has a newer rooftop furnace A/C unit. The property is suitable for medical, dental, lab, office, and urgent care purposes. On-site parking is available at the rear of the building and on Rutherford Street. The W Warren Streetscape project is nearing completion and will enhance the repaved W Warren with improvements such as parking spaces, public arts, reconfiguration of traffic lanes, and more. The property is close to major expressways. The location has a walk score of 60, a bike score of 47, and a transit score of 45.
Key Highlights
- Recently updated, versatile building suitable for medical, office, or other commercial uses.
- High‑visibility location on busy W Warren Ave.
- 1872 Sq Ft featuring a reception area, 4 exam rooms, private office, large workspace, bathroom, and kitchen/break room.
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
$21,009
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
8.44%
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%
$420,180
$420.2K
Cap Rate 7%
$300,129
$300.1K
Cap Rate 9%
$233,433
$233.4K
Market Conditions
NOI Build-Up for 1,872 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
$36.6K $19.56/SF
− Vacancy
−$8.6K −$4.60/SF
EGI
$28.0K $14.96/SF
− OpEx
−$7.0K −$3.74/SF
NOI
$21.0K $11.22/SF
Area
ZIP 48228
Vacancy
23.50%
Lease Rate
$19.56 /SF/Yr
Expense Ratio
25.00%
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%
$420,180
Cap Rate 7%
$300,129
Cap Rate 9%
$233,433
Alternative Uses
Best Use
Healthcare Medical
$363.9K
$318.4K – $424.6K
NOI $25,474 @ 7.0% cap · market cap 10.23%
Second Best
Office B
$300.1K
$262.6K – $350.2K
NOI $21,009 @ 7.0% cap · market cap 8.44%
Theoretical Best
Office A
$384.5K
$336.4K – $448.6K
NOI $26,915 @ 7.0% cap · market cap 10.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
341
Businesses Nearby
Under-served
Demand for This Use
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
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Recently updated medical office building suitable for various uses.
Where is this medical office space located?
The property is located at 16000 W Warren Ave Detroit, MI.
What is the asking price?
The asking price for this property is $249,000.
What are key features of this property?
This property features: Recently updated, versatile building suitable for medical, office, or other commercial uses.; High‑visibility location on busy W Warren Ave.; 1872 Sq Ft featuring a reception area, 4 exam rooms, private office, large workspace, bathroom, and kitchen/break room.
