Flex Warehouse with Private
For Sale
$320,000
20825 Joy Rd, Detroit, MI 48228
Two-building flex warehouse includes high ceilings, an overhead door, and four private office spaces.
Property Size4,800 SF
Price / SF$64
Days on Market96
Property Features for 20825 Joy Rd
General Information
Standard status
Active
Size
4,800 SF
Property subtype
Commercial
Additional Details
Fenced Yard
Yes
Office Units
4
Taxes and HOA fees
Annual Taxes
$3,449
Building Details
Building Size
4,800 SF
Year Built
1948
Listing Agency:
KW Commercial GR East
(313) 752-0000
Listed By:
Ali Nasser · License #6501415190
(313) 752-0000
Source:
Elliman
Added: May 9
Changed: Aug 7
Last Checked: Aug 12 at 9:57AM
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 KW Commercial GR East
Investment Insights
Based on property information with market context.
This two-building commercial property offers nearly 5,000 square feet of flex warehouse space with a clean, open layout designed for a range of business uses. The warehouse features high ceilings and an overhead door, supported by a front lobby area and large open interior space. There are four private office spaces, updated interior finishes in the office areas, and 1.5 baths to support on-site work.
The property includes secure outdoor access with an electric gate and a gated private parking/yard area spanning lots 260–264. This setup supports loading and outdoor use while maintaining controlled access.
With office-ready improvements alongside warehouse functionality, the space is configured to support both daily operations and flexible light storage, distribution, or creative workspace needs under one roof.
The property includes secure outdoor access with an electric gate and a gated private parking/yard area spanning lots 260–264. This setup supports loading and outdoor use while maintaining controlled access.
With office-ready improvements alongside warehouse functionality, the space is configured to support both daily operations and flexible light storage, distribution, or creative workspace needs under one roof.
Key Highlights
- Two‑building commercial property (built 1948) with nearly 5,000 SF of flexible warehouse space
- Warehouse includes high ceilings and an overhead door for storage, distribution, or light industrial use
- Total of four private office spaces plus a front lobby and a large open floor plan for versatile business layouts
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
$29,342
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
9.17%
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%
$586,840
$586.8K
Cap Rate 7%
$419,171
$419.2K
Cap Rate 9%
$326,022
$326.0K
Market Conditions
NOI Build-Up for 5,000 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
$43.8K $8.76/SF
− Vacancy
−$1.9K −$0.38/SF
EGI
$41.9K $8.38/SF
− OpEx
−$12.6K −$2.51/SF
NOI
$29.3K $5.87/SF
Area
ZIP 48228
Vacancy
4.30%
Lease Rate
$8.76 /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%
$586,840
Cap Rate 7%
$419,171
Cap Rate 9%
$326,022
Alternative Uses
Best Use
Office B
$801.6K
$701.4K – $935.2K
NOI $56,113 @ 7.0% cap · market cap 17.54%
Second Best
Flex RnD
$717.6K
$627.9K – $837.2K
NOI $50,232 @ 7.0% cap · market cap 15.70%
Theoretical Best
Office A
$1.03M
$898.6K – $1.20M
NOI $71,889 @ 7.0% cap · market cap 22.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Office units
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
408
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48228, MI
53,893
Population
22,620
Households
2.4
Avg Household Size
31
Median Age
11%
College-Educated
78%
High-School Grad
8.9 sq mi
ZIP Area
6,055
Density / Sq Mi
$31,485
Median Household Income
$27,533
Median Earnings
$1,086
Median Rent
$55,100
Median Home Value
Market
Vacancy Rate% for Office in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two-building flex warehouse includes high ceilings, an overhead door, and four private office spaces.
Where is this flex space located?
The property is located at 20825 Joy Rd Detroit, MI.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: Two‑building commercial property (built 1948) with nearly 5,000 SF of flexible warehouse space; Warehouse includes high ceilings and an overhead door for storage, distribution, or light industrial use; Total of four private office spaces plus a front lobby and a large open floor plan for versatile business layouts
