Automotive Property with Garage
For Sale
$550,000
12520 Morang Drive, Detroit, MI 82001
COM/IND/BUS OPP, Detroit, MI
Property Size2,176 SF
Lot Size0.54 Acres
Price / SF$252.76
Days on Market737
Property Features for 12520 Morang Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Exterior features
Fence Owned
Fencing
Fenced
Lot features
Corner Lot
Subdivision
Detroit (82001)
Standard status
Active
APN
2107662332
Size
2,176 SF
Lot size
0.54 Acres
Utilities
Heating system
Hot Water(Heating), Forced Air
Cooling system
Ceiling Fan(s), Exhaust Fan (Cooling), Central Air, Humidity Control
Water source
Public
Building Details
Year built
1971
Roof type
Shingle
Additional Structures
Second Garage
Listing Agency:
Keller Williams Realty Lakeside
(586) 532-0500
Listed By:
Arkan Aboona · License #6506049110
(586) 438-4342
Added: Sep 10, 2024
Changed: Sep 12
Last Checked: Sep 16 at 1:06AM
MLS# 50154894
Copyright © 2026 Multiple Listing Service MiRealSource. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 12520 Morang Drive in Detroit, Michigan, this automotive property includes a 2,176-square-foot building on approximately 0.54 acre of fenced land. The existing layout combines office space with three large garage bays, providing a practical configuration for the current dealership operation and other automotive-related activities subject to applicable requirements.
The property was built in 1971 and includes central air, forced-air and hot-water heating, public water service, and a shingle roof. Additional cooling-related features include an exhaust fan, humidity control, and ceiling fans. Zoning, measurements, licensing, and permitted uses should be independently verified.
The property was built in 1971 and includes central air, forced-air and hot-water heating, public water service, and a shingle roof. Additional cooling-related features include an exhaust fan, humidity control, and ceiling fans. Zoning, measurements, licensing, and permitted uses should be independently verified.
Key Highlights
- 2,176 SF building on approximately 0.54 acre
- Three large garage bays with office space
- Fenced land and owned fencing
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
Industrial
$151.2K
$132.3K – $176.4K
NOI $10,583 @ 7.0% cap · market cap 1.92%
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
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Current Use
Lease Details
3
Service bays
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
406
Businesses Nearby
13k
Monthly Visits Nearby
Under-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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Detroit, MI
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Frequently Asked Questions
What type of property is this?
Automotive property - Fenced Detroit commercial property with office space and three oversized service bays, currently operating as an automotive dealership.
Where is this automotive property 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 on approximately 0.54 acre; Three large garage bays with office space; Fenced land and owned fencing
