Fully Leased Detroit New
For Sale
Contact for pricing
12730 W 7 Mile Rd, Detroit, MI 48235
Turnkey investment opportunity in Detroit's growing real estate market.
Property Size3,563 SF
Price / SF$261.02
Days on Market1127
Property Features for 12730 W 7 Mile Rd
General Information
Standard status
Active
Size
3,563 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Net Operating Income
$76,775
Building Details
Units
3
Tenancy
Multi
Listing Agency:
Keystone Commercial Real Estate
Listed By:
Kathleen Garmo · License #6501415998
(248) 406-1761
Source:
Crexi
Added: Aug 8, 2023
Changed: Aug 31
Last Checked: Sep 7 at 8:05AM
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 Keystone Commercial Real Estate
Investment Insights
Based on property information with market context.
Located at 12730 West 7 Mile Road in Detroit, MI, this fully leased new development offers a total of 3,563 square feet of space. The property's modern and stylish design is intended to attract a wide range of businesses, with a versatile layout that can accommodate various industries, from retail to office space. The property benefits from a convenient location near major highways and popular amenities, offering accessibility and convenience for both tenants and customers. The fully leased tenant roster provides steady cash flow from day one, making it a turnkey investment.
Key Highlights
- Fully Leased: Provides immediate and steady cash flow.
- New Development: Features modern design and construction.
- Prime Location: Situated on West 7 Mile Road in Detroit, offering accessibility and convenience.
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
$31,493
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
3.39%
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%
$629,860
$629.9K
Cap Rate 7%
$449,900
$449.9K
Cap Rate 9%
$349,922
$349.9K
Market Conditions
NOI Build-Up for 3,563 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
$49.2K $13.80/SF
− Vacancy
−$4.2K −$1.17/SF
EGI
$45.0K $12.63/SF
− OpEx
−$13.5K −$3.79/SF
NOI
$31.5K $8.84/SF
Area
ZIP 48235
Vacancy
8.50%
Lease Rate
$13.80 /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%
$629,860
Cap Rate 7%
$449,900
Cap Rate 9%
$349,922
Alternative Uses
Best Use
Retail
$449.9K
$393.7K – $524.9K
NOI $31,493 @ 7.0% cap · market cap 3.39%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$505.1K
$441.9K – $589.2K
NOI $35,354 @ 7.0% cap · market cap 3.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
37k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 50%
Shops & Services 47%
Electronics 4%
Wendy's
Dining
18,328 visits/mo
0.5 miles
BP
Shops & Services
11,900 visits/mo
0.4 miles
AutoZone
Shops & Services
5,282 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
669 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
628 visits/mo
0.4 miles
Demographics for 48235, MI
45,188
Population
20,946
Households
2.2
Avg Household Size
39
Median Age
15%
College-Educated
91%
High-School Grad
6.2 sq mi
ZIP Area
7,288
Density / Sq Mi
$41,011
Median Household Income
$31,545
Median Earnings
$1,151
Median Rent
$79,400
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?
Retail space - Turnkey investment opportunity in Detroit's growing real estate market.
Where is this retail space located?
The property is located at 12730 W 7 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $930,000.
What are key features of this property?
This property features: Fully Leased: Provides immediate and steady cash flow.; New Development: Features modern design and construction.; Prime Location: Situated on West 7 Mile Road in Detroit, offering accessibility and convenience.
