Renovated Medical Office
For Sale
$1,200,000
24381 Orchard Lake Rd, Farmington Hills, MI 48336
Fully renovated medical office building with multiple entry points and a usable basement.
Property Size10,000 SF
Lot Size1.26 Acres
Price / SF$120
Days on Market685
Property Features for 24381 Orchard Lake Rd
General Information
Standard status
Active
Size
10,000 SF
Class
C
Lot size
1.26 Acres
Property subtype
Office
Zoning
OS-2
Additional Details
Traffic Count
20,000 vehicles/day
Sprinkler System
Yes
Amenities
Fully Renovated Basement w/ Kitchen and Full Bath (Jacuzzi Tub)
Multiple HVAC Zones
Full Building Sprinkler and Security System
Backup Generator
Building Details
Building Size
10,000 SF
Year Built
1980
Year Renovated
2002
Buildings
1
Stories
1
Listing Agency:
Thomas A. Duke Company
Listed By:
Joseph Evangelista
(248) 479-0128
Source:
Cpix.resimplifi
Added: Oct 21, 2024
Changed: Aug 8
Last Checked: Sep 5 at 3:48AM
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 Thomas A. Duke Company
Investment Insights
Based on property information with market context.
This fully renovated medical office building offers a total size of 10,000 square feet, including approximately 5,000 square feet of usable basement. The interior features luxury vinyl plank and ceramic tile, and the basement has been fully renovated with a kitchen and a full bath with a Jacuzzi tub. The building is supported by multiple HVAC zones, a full building sprinkler and security system, and a backup generator.
Set back from Orchard Lake Road, the property sits on a 1.26-acre lot with frontage along Orchard Lake Rd, which is described as carrying 20,000+ cars per day. Located just south of I-96 along Orchard Lake Road, the site provides convenient access to major transportation.
With multiple points of entry, the layout is suitable for a potential multi-tenant configuration.
Set back from Orchard Lake Road, the property sits on a 1.26-acre lot with frontage along Orchard Lake Rd, which is described as carrying 20,000+ cars per day. Located just south of I-96 along Orchard Lake Road, the site provides convenient access to major transportation.
With multiple points of entry, the layout is suitable for a potential multi-tenant configuration.
Key Highlights
- 10,000 SF medical office building set back from Orchard Lake Rd, with ~5,000 SF usable basement
- 1.26‑acre lot along Orchard Lake Rd with 20,000+ cars per day
- Completely renovated interior with luxury vinyl plank and ceramic tile flooring
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
$34,425
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
2.87%
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%
$688,500
$688.5K
Cap Rate 7%
$491,786
$491.8K
Cap Rate 9%
$382,500
$382.5K
Market Conditions
NOI Build-Up for 10,000 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
$60.0K $6.00/SF
− Vacancy
−$14.1K −$1.41/SF
EGI
$45.9K $4.59/SF
− OpEx
−$11.5K −$1.15/SF
NOI
$34.4K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$688,500
Cap Rate 7%
$491,786
Cap Rate 9%
$382,500
Alternative Uses
Best Use
Healthcare Medical
$1.93M
$1.69M – $2.26M
NOI $135,324 @ 7.0% cap · market cap 11.28%
Second Best
Office B
$491.8K
$430.3K – $573.8K
NOI $34,425 @ 7.0% cap · market cap 2.87%
Theoretical Best
Specialty Retail
$2.16M
$1.89M – $2.52M
NOI $150,984 @ 7.0% cap · market cap 12.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20,000 VPD
Traffic count
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
500
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48336, MI
26,802
Population
12,296
Households
2.2
Avg Household Size
42
Median Age
44%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,882
Density / Sq Mi
$85,325
Median Household Income
$54,077
Median Earnings
$1,141
Median Rent
$247,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully renovated medical office building with multiple entry points and a usable basement.
Where is this medical office space located?
The property is located at 24381 Orchard Lake Rd Farmington Hills, MI.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 10,000 SF medical office building set back from Orchard Lake Rd, with ~5,000 SF usable basement; 1.26‑acre lot along Orchard Lake Rd with 20,000+ cars per day; Completely renovated interior with luxury vinyl plank and ceramic tile flooring
