Turn-Key Licensed Dispensary with
For Sale
Contact for pricing
5540 E 8 MILE RD E, Detroit, MI 48091
Fully licensed, turnkey dispensary with secure reception, ample parking, and drive-through capability.
Property Size3,800 SF
Lot Size1.00 Acre
Price / SF$394.47
Days on Market756
Property Features for 5540 E 8 MILE RD E
General Information
Standard status
Active
Size
3,800 SF
Lot size
1.00 Acre
Property subtype
Business for Sale, Office, Land
Additional Details
Business Included
Yes
Building Details
Year Built
1949
Listing Agency:
Keller Williams Legacy
(313) 995-2600
Listed By:
Amer Jaafar · License #MI 449495
Source:
Crexi
Added: Jul 12, 2024
Changed: Jul 10
Last Checked: Aug 6 at 9:34AM
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 fully built-out, turn-key dispensary is offered as a ready-to-operate retail cannabis property with a professional interior finish. The building is approximately 4,000 square feet and includes decorative, top-quality materials throughout, ceramic marble floors, and strong lighting. A secure service reception area is built with state-of-the-art safety measures, supported by rest rooms and a large storage area to support daily operations.
The property sits on an approximately one-acre lot with ample parking in a newer cement parking area. A drive-through is available, supporting customer flow and convenient off-street parking for staff and visitors. The building is located at 5540 E 8 Mile Rd in Detroit, Michigan.
For buyers seeking an operating cannabis retail facility rather than a bare buildout, this configuration provides a functional mix of customer-facing service space, secure reception, and operational back-of-house support. The inclusion of a drive-through option and the on-site parking layout may help accommodate higher-volume service needs while keeping operations self-contained within the property.
The property sits on an approximately one-acre lot with ample parking in a newer cement parking area. A drive-through is available, supporting customer flow and convenient off-street parking for staff and visitors. The building is located at 5540 E 8 Mile Rd in Detroit, Michigan.
For buyers seeking an operating cannabis retail facility rather than a bare buildout, this configuration provides a functional mix of customer-facing service space, secure reception, and operational back-of-house support. The inclusion of a drive-through option and the on-site parking layout may help accommodate higher-volume service needs while keeping operations self-contained within the property.
Key Highlights
- Fully licensed dispensary with secure service reception area built with state‑of‑the‑art safety measures
- Approx. 4,000 SF dispensary building on an approx. 1‑acre lot
- New cement parking lot with ample parking
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
$46,804
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
3.12%
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%
$936,080
$936.1K
Cap Rate 7%
$668,629
$668.6K
Cap Rate 9%
$520,044
$520.0K
Market Conditions
NOI Build-Up for 3,800 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
$70.7K $18.60/SF
− Vacancy
−$3.8K −$1.00/SF
EGI
$66.9K $17.60/SF
− OpEx
−$20.1K −$5.28/SF
NOI
$46.8K $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%
$936,080
Cap Rate 7%
$668,629
Cap Rate 9%
$520,044
Alternative Uses
Best Use
Retail
$668.6K
$585.1K – $780.1K
NOI $46,804 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$838.3K
$733.5K – $978.0K
NOI $58,681 @ 7.0% cap · market cap 3.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
475
Businesses Nearby
139k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 48%
Dining 32%
Groceries 11%
Electronics 6%
Dollar Tree
Shops & Services
16,972 visits/mo
0.4 miles
Aldi
Groceries
15,887 visits/mo
0.1 miles
White Castle
Dining
13,359 visits/mo
0.2 miles
BP
Shops & Services
12,854 visits/mo
0.3 miles
Burger King
Dining
10,456 visits/mo
0.3 miles
Demographics for 48091, MI
32,267
Population
12,919
Households
2.5
Avg Household Size
37
Median Age
17%
College-Educated
82%
High-School Grad
7.9 sq mi
ZIP Area
4,084
Density / Sq Mi
$53,400
Median Household Income
$31,877
Median Earnings
$1,231
Median Rent
$138,700
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.
Frequently Asked Questions
What type of property is this?
Cannabis property - Fully licensed, turnkey dispensary with secure reception, ample parking, and drive-through capability.
Where is this cannabis property located?
The property is located at 5540 E 8 MILE RD E Detroit, MI.
What is the asking price?
The asking price for this property is $1,499,000.
What are key features of this property?
This property features: Fully licensed dispensary with secure service reception area built with state‑of‑the‑art safety measures; Approx. 4,000 SF dispensary building on an approx. 1‑acre lot; New cement parking lot with ample parking
