Commercial Building on 8
For Sale
$225,000
12434 E 8 Mile Rd, Detroit, MI
2,400 sq ft commercial building on busy 8 Mile.
Property Size2,000 SF
Price / SF$112.50
Days on Market178
Property Features for 12434 E 8 Mile Rd
General Information
Standard status
Active
Size
2,000 SF
Taxes and HOA fees
Annual Taxes
$3,460
Listing Agency:
Keller Williams Legacy
(313) 706-7011
Listed By:
Nick Jaafar · License #6501403947
(313) 706-7011
Source:
Exprealty
Added: Feb 26
Changed: Aug 23
Last Checked: Aug 21 at 4:01PM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
This 2,400 sq ft block and concrete commercial building is located on 8 Mile Road and offers approximately 60 feet of road frontage. Currently used for storage for liquidation, it is available for sale and lease. The property is zoned for commercial, light industrial, retail, or warehouse use, providing flexibility for various businesses. The building includes ample space for storage, inventory, or operational needs. Parking is available on-site, assigned, and on the street for customers and employees. The property benefits from steady traffic and convenient access to major roads. It is located near restaurants, retail stores, and other established businesses.
Key Highlights
- High‑visibility location on busy 8 Mile Road with approximately 60 feet of road frontage.
- Flexible zoning suitable for various businesses.
- 2,400 sq ft block and concrete commercial building suitable for sale or lease.**
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
$14,252
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
6.33%
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%
$285,040
$285.0K
Cap Rate 7%
$203,600
$203.6K
Cap Rate 9%
$158,356
$158.4K
Market Conditions
NOI Build-Up for 2,000 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
$17.5K $8.76/SF
− Vacancy
−$753 −$0.38/SF
EGI
$16.8K $8.38/SF
− OpEx
−$2.5K −$1.26/SF
NOI
$14.3K $7.13/SF
Area
Detroit, MI
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%
$285,040
Cap Rate 7%
$203,600
Cap Rate 9%
$158,356
Alternative Uses
Best Use
Retail
$351.9K
$307.9K – $410.6K
NOI $24,634 @ 7.0% cap · market cap 10.95%
Second Best
Warehouse
$203.6K
$178.2K – $237.5K
NOI $14,252 @ 7.0% cap · market cap 6.33%
Theoretical Best
Office A
$441.2K
$386.1K – $514.8K
NOI $30,885 @ 7.0% cap · market cap 13.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,556
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial 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?
Retail space - 2,400 sq ft commercial building on busy 8 Mile.
Where is this retail space located?
The property is located at 12434 E 8 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $225,000.
What are key features of this property?
This property features: High‑visibility location on busy 8 Mile Road with approximately 60 feet of road frontage.; Flexible zoning suitable for various businesses.; 2,400 sq ft block and concrete commercial building suitable for sale or lease.**
