Flex Space with Garage
For Sale
$550,000
12520 MORANG DR, Detroit, MI 82001
Fenced commercial property combines office accommodations with automotive-oriented improvements.
Property Size2,176 SF
Lot Size0.54 Acres
Price / SF$252.76
Days on Market698
Property Features for 12520 MORANG DR
General Information
Standard status
Active
Size
2,176 SF
Lot size
0.54 Acres
Property subtype
Industrial
Additional Details
Fenced Yard
Yes
Service Bays
3
Amenities
Central Air, Ceiling Fan(s)
3
Shingle
23522
Building Details
Year Built
1971
Building Size
2,176 SF
Listing Agency:
Keller Williams Realty Lakeside
(586) 438-4342
Listed By:
Arkan Aboona · License #6506049110
(586) 438-4342
Source:
Xome
Added: Sep 8, 2024
Changed: Aug 2
Last Checked: Aug 6 at 4:23AM
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 flex space includes 2,176 SF of building area arranged with office space and three large garage bays. The improvements sit on approximately 0.54 acre of fenced land, providing a defined outdoor area alongside the building. Central air and ceiling fans are included, and the property was built in 1971.
The site is located at 12520 Morang Dr in Detroit, Michigan. It is currently used as an automotive dealership, with the existing configuration supporting dealership or automotive service operations subject to applicable zoning, licensing, and governmental requirements. Buyers should independently verify measurements, zoning, permitted uses, and other property information.
The site is located at 12520 Morang Dr in Detroit, Michigan. It is currently used as an automotive dealership, with the existing configuration supporting dealership or automotive service operations subject to applicable zoning, licensing, and governmental requirements. Buyers should independently verify measurements, zoning, permitted uses, and other property information.
Key Highlights
- 2,176 SF building on approximately 0.54 acre
- Three large garage bays
- Office space included within the building
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
Detroit, MI
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
Office B
$314.9K
$275.6K – $367.4K
NOI $22,045 @ 7.0% cap · market cap 4.01%
Theoretical Best
Office A
$480.0K
$420.0K – $560.0K
NOI $33,602 @ 7.0% cap · market cap 6.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Service bays
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
397
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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?
Flex space - Fenced commercial property combines office accommodations with automotive-oriented improvements.
Where is this flex space located?
The property is located at 12520 MORANG DR 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 on approximately 0.54 acre; Three large garage bays; Office space included within the building
