Three-Bay Auto
For Sale
$550,000
12520 Morang Drive, Detroit, MI 48224
Fenced commercial site with office space and multiple garage bays, currently used for automotive dealership operations.
Property Size2,176 SF
Lot Size0.54 Acres
Price / SF$252.76
Days on Market20
Property Features for 12520 Morang Drive
General Information
Standard status
Active
Size
2,176 SF
Lot size
0.54 Acres
Property subtype
Commercial
Zoning
Commercial
Additional Details
Fenced Yard
Yes
Service Bays
3
Building Details
Building Size
2,176 SF
Year Built
1971
Buildings
1
Listing Agency:
Keller Williams Realty Lakeside
(586) 438-4342
Listed By:
Arkan Aboona · License #6506049110
Source:
Erareardonrealty
Added: Aug 12
Changed: Aug 30
Last Checked: Aug 30 at 5:37PM
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 Realty Lakeside
Investment Insights
Based on property information with market context.
This automotive property includes a 2,176-square-foot building with dedicated office space and three large garage bays. The improvements sit on approximately 0.54 acre of fenced land, providing a defined operating area for the current dealership use. Built in 1971, the property is zoned Commercial.
Located at 12520 Morang Drive in Detroit, Michigan, the site is currently used as an automotive dealership. Any future use, measurements, licensing, and zoning compliance should be independently verified with the appropriate authorities.
Located at 12520 Morang Drive in Detroit, Michigan, the site is currently used as an automotive dealership. Any future use, measurements, licensing, and zoning compliance should be independently verified with the appropriate authorities.
Key Highlights
- 2,176 SF building with office space and three large garage bays
- Approximately 0.54 acre of fenced land
- Currently used as an automotive dealership
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
$26,802
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
4.87%
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%
$536,040
$536.0K
Cap Rate 7%
$382,886
$382.9K
Cap Rate 9%
$297,800
$297.8K
Market Conditions
NOI Build-Up for 2,176 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
$40.5K $18.60/SF
− Vacancy
−$2.2K −$1.00/SF
EGI
$38.3K $17.60/SF
− OpEx
−$11.5K −$5.28/SF
NOI
$26.8K $12.32/SF
Area
ZIP 48224
Vacancy
5.40%
Lease Rate
$18.60 /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%
$536,040
Cap Rate 7%
$382,886
Cap Rate 9%
$297,800
Alternative Uses
Best Use
Retail
$382.9K
$335.0K – $446.7K
NOI $26,802 @ 7.0% cap · market cap 4.87%
Second Best
Industrial
$167.6K
$146.7K – $195.6K
NOI $11,733 @ 7.0% cap · market cap 2.13%
Theoretical Best
Office A
$548.9K
$480.3K – $640.3K
NOI $38,420 @ 7.0% cap · market cap 6.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Service bays
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
406
Businesses Nearby
13k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Family Dollar
Shops & Services
11,587 visits/mo
0.0 miles
Sunoco
Shops & Services
1,605 visits/mo
0.5 miles
Demographics for 48224, MI
39,633
Population
16,786
Households
2.4
Avg Household Size
33
Median Age
14%
College-Educated
84%
High-School Grad
5.8 sq mi
ZIP Area
6,833
Density / Sq Mi
$42,963
Median Household Income
$30,997
Median Earnings
$1,213
Median Rent
$77,900
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Kings Auto Car Clinic — 11350 Kelly Rd, Detroit, MI 48224
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- Rob's Auto Excellence — 11350 Kelly Rd #1514, Detroit, MI 48224
- Two Brothers Auto Shop Inc — 11300 Whittier Ave, Detroit, MI 48224
- A & M Automotive — 10845 Whittier Ave, Detroit, MI 48224
Frequently Asked Questions
What type of property is this?
Auto shop - Fenced commercial site with office space and multiple garage bays, currently used for automotive dealership operations.
Where is this auto shop located?
The property is located at 12520 Morang Drive Detroit, MI.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 2,176 SF building with office space and three large garage bays; Approximately 0.54 acre of fenced land; Currently used as an automotive dealership
