Small Office/Retail
For Sale
$400,000
3406 12 Mile Rd, Berkley, MI 48072
Flex office/retail space includes private parking, a fenced lot, and a rear overhead door for convenient access.
Property Size1,900 SF
Price / SF$210.53
Days on Market685
Property Features for 3406 12 Mile Rd
General Information
Standard status
Active
Size
1,900 SF
Property subtype
Retail
Zoning
TM
Additional Details
Fenced Yard
Yes
Building Details
Building Size
1,900 SF
Year Built
1951
Buildings
1
Stories
1
Listing Agency:
Thomas A. Duke Company
Listed By:
Jordan Schafer
(248) 479-0130
Source:
Cpix.resimplifi
Added: Oct 21, 2024
Changed: Aug 8
Last Checked: Sep 5 at 3:38AM
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 flexible small office/workspace is suited to multiple business formats. The offering includes private parking, a fenced lot, and a rear entrance with a 9' x 7' overhead door, supporting straightforward deliveries and conversions between office and retail use.
Located in downtown Berkley on 12 Mile Rd between Coolidge Hwy and Greenfield Rd, the property is adjacent to Hartfield Lanes, offering visibility within the district.
The space totals 1,900 SF and is described as office/retail, with the overhead door and fenced yard providing practical improvements for contractor or retail-oriented operations.
Located in downtown Berkley on 12 Mile Rd between Coolidge Hwy and Greenfield Rd, the property is adjacent to Hartfield Lanes, offering visibility within the district.
The space totals 1,900 SF and is described as office/retail, with the overhead door and fenced yard providing practical improvements for contractor or retail-oriented operations.
Key Highlights
- 1,900 SF office/retail space in Downtown Berkley
- Year built 1951
- Located on 12 Mile Rd in Downtown Berkley between Coolidge Hwy and Greenfield Rd
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
$20,445
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
5.11%
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%
$408,900
$408.9K
Cap Rate 7%
$292,071
$292.1K
Cap Rate 9%
$227,167
$227.2K
Market Conditions
NOI Build-Up for 1,900 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
$31.9K $16.80/SF
− Vacancy
−$2.7K −$1.43/SF
EGI
$29.2K $15.37/SF
− OpEx
−$8.8K −$4.61/SF
NOI
$20.4K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$408,900
Cap Rate 7%
$292,071
Cap Rate 9%
$227,167
Alternative Uses
Best Use
Retail
$292.1K
$255.6K – $340.8K
NOI $20,445 @ 7.0% cap · market cap 5.11%
Second Best
Office B
$93.4K
$81.8K – $109.0K
NOI $6,541 @ 7.0% cap · market cap 1.64%
Theoretical Best
Specialty Retail
$409.8K
$358.6K – $478.1K
NOI $28,687 @ 7.0% cap · market cap 7.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
773
Businesses Nearby
Explore this area
Business Placement
Demographics for 48072, MI
15,194
Population
7,068
Households
2.1
Avg Household Size
38
Median Age
58%
College-Educated
99%
High-School Grad
2.4 sq mi
ZIP Area
6,331
Density / Sq Mi
$113,103
Median Household Income
$68,818
Median Earnings
$1,436
Median Rent
$289,200
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?
Retail space - Flex office/retail space includes private parking, a fenced lot, and a rear overhead door for convenient access.
Where is this retail space located?
The property is located at 3406 12 Mile Rd Berkley, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 1,900 SF office/retail space in Downtown Berkley; Year built 1951; Located on 12 Mile Rd in Downtown Berkley between Coolidge Hwy and Greenfield Rd
