Freestanding Retail
For Sale
$750,000
201 W 8 Mile Rd, Detroit, MI 48203
Freestanding retail building on 8 Mile Road with signalized intersection access and 56,000+ vehicles per day.
Property Size3,538 SF
Days on Market48
Property Features for 201 W 8 Mile Rd
General Information
Standard status
Active
Size
3,538 SF
Property subtype
Retail
Site & Location
Traffic Count
56,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
3,538 SF
Year Built
1986
Listing Agency:
(586) 263-5111
Listed By:
Michael Scamardella
Source:
Linorealty
Added: Jun 25
Changed: Aug 10
Last Checked: Aug 11 at 5:03AM
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 Michael Scamardella
Investment Insights
Based on property information with market context.
201 W 8 Mile Road presents a freestanding retail building positioned along 8 Mile Road, one of Detroit’s most recognizable commercial corridors. The property is offered for sale or lease and includes existing infrastructure intended to support quick occupancy or repositioning.
Located on 8 Mile Road between Woodward Avenue and I-75, the site benefits from strong visibility and two-way average daily traffic counts exceeding 56,000 vehicles. Access is supported by a signalized intersection with multiple curb cuts, providing practical ingress and egress for retail operations.
On-site parking is available, with the property also noting potential overflow parking from an adjacent property. The building’s configuration and corridor placement make it suited for a range of retail uses where convenient access and high traffic exposure are priorities.
Located on 8 Mile Road between Woodward Avenue and I-75, the site benefits from strong visibility and two-way average daily traffic counts exceeding 56,000 vehicles. Access is supported by a signalized intersection with multiple curb cuts, providing practical ingress and egress for retail operations.
On-site parking is available, with the property also noting potential overflow parking from an adjacent property. The building’s configuration and corridor placement make it suited for a range of retail uses where convenient access and high traffic exposure are priorities.
Key Highlights
- Freestanding retail building with existing infrastructure for quick occupancy or repositioning
- Located on 8 Mile Rd between Woodward Ave and I‑75
- Two‑way average daily traffic counts exceeding 56,000 vehicles
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
$43,577
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
5.81%
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%
$871,540
$871.5K
Cap Rate 7%
$622,529
$622.5K
Cap Rate 9%
$484,189
$484.2K
Market Conditions
NOI Build-Up for 3,538 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
$65.8K $18.60/SF
− Vacancy
−$3.6K −$1.00/SF
EGI
$62.3K $17.60/SF
− OpEx
−$18.7K −$5.28/SF
NOI
$43.6K $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%
$871,540
Cap Rate 7%
$622,529
Cap Rate 9%
$484,189
Alternative Uses
Best Use
Retail
$622.5K
$544.7K – $726.3K
NOI $43,577 @ 7.0% cap · market cap 5.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$780.5K
$682.9K – $910.6K
NOI $54,635 @ 7.0% cap · market cap 7.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
56,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
486
Businesses Nearby
25k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 61%
Dining 39%
Marathon Petroleum
Shops & Services
7,005 visits/mo
0.3 miles
Church's Chicken
Dining
6,421 visits/mo
0.0 miles
Exxon
Shops & Services
6,017 visits/mo
0.5 miles
Tubby's
Dining
3,144 visits/mo
0.2 miles
Northland Chrysler Dodge Jeep Ram
Shops & Services
2,143 visits/mo
0.3 miles
Demographics for 48203, MI
22,168
Population
13,591
Households
1.6
Avg Household Size
39
Median Age
19%
College-Educated
85%
High-School Grad
8.2 sq mi
ZIP Area
2,703
Density / Sq Mi
$35,108
Median Household Income
$28,364
Median Earnings
$799
Median Rent
$76,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Freestanding retail building on 8 Mile Road with signalized intersection access and 56,000+ vehicles per day.
Where is this storefront property located?
The property is located at 201 W 8 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Freestanding retail building with existing infrastructure for quick occupancy or repositioning; Located on 8 Mile Rd between Woodward Ave and I‑75; Two‑way average daily traffic counts exceeding 56,000 vehicles
