Secure Light Industrial
For Sale
$275,000
521 E 7 Mile Rd, Detroit, MI
Secure light industrial space with operational mechanicals and ample power for a range of in-building uses.
Property Size3,160 SF
Price / SF$87.03
Days on Market679
Property Features for 521 E 7 Mile Rd
General Information
Standard status
Active
Size
3,160 SF
Taxes and HOA fees
Annual Taxes
$822
Listing Agency:
Herbert J Hill Realty Real Estate Master
(313) 341-2656
Listed By:
Herbert J Hill Jr · License #6504381646
(313) 341-2656
Source:
Exprealty
Added: Oct 4, 2024
Changed: Aug 9
Last Checked: Aug 12 at 10:26AM
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 Herbert J Hill Realty Real Estate Master
Investment Insights
Based on property information with market context.
This for-sale industrial property offers a total size of 3,160 square feet, configured for light industrial work. The site is described as secure, and the mechanicals are stated to be operational. The listing also notes plenty of power to support in-building activity suitable for light industrial operations.
The property is located at 521 E 7 Mile Rd in Detroit, MI. Access and frontage details are not provided in the available information, so prospective buyers should confirm site access, loading, and any specific operational needs during due diligence.
For tenants, buyers, or operators looking for a compact, secure industrial footprint with power and working mechanicals, this layout may align with light industrial activity where in-place utilities matter. Because the listing does not provide specifics on zoning, overhead doors, ceiling clearances, or office buildout, interested parties should review the property in person and verify permitted uses, utility capacity, and configuration as part of their underwriting.
The property is located at 521 E 7 Mile Rd in Detroit, MI. Access and frontage details are not provided in the available information, so prospective buyers should confirm site access, loading, and any specific operational needs during due diligence.
For tenants, buyers, or operators looking for a compact, secure industrial footprint with power and working mechanicals, this layout may align with light industrial activity where in-place utilities matter. Because the listing does not provide specifics on zoning, overhead doors, ceiling clearances, or office buildout, interested parties should review the property in person and verify permitted uses, utility capacity, and configuration as part of their underwriting.
Key Highlights
- About 3,100 SF property with space suitable for light industrial uses
- Plenty of power available for in‑building light industrial work
- Secure property with operational mechanicals
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
$15,369
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
5.59%
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%
$307,380
$307.4K
Cap Rate 7%
$219,557
$219.6K
Cap Rate 9%
$170,767
$170.8K
Market Conditions
NOI Build-Up for 3,160 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
$23.1K $7.32/SF
− Vacancy
−$1.2K −$0.37/SF
EGI
$22.0K $6.95/SF
− OpEx
−$6.6K −$2.08/SF
NOI
$15.4K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$307,380
Cap Rate 7%
$219,557
Cap Rate 9%
$170,767
Alternative Uses
Best Use
Industrial
$219.6K
$192.1K – $256.2K
NOI $15,369 @ 7.0% cap · market cap 5.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$697.1K
$610.0K – $813.3K
NOI $48,798 @ 7.0% cap · market cap 17.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
347
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?
Manufacturing property - Secure light industrial space with operational mechanicals and ample power for a range of in-building uses.
Where is this manufacturing property located?
The property is located at 521 E 7 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: About 3,100 SF property with space suitable for light industrial uses; Plenty of power available for in‑building light industrial work; Secure property with operational mechanicals
