Flex Space Building with Delivery
For Sale
$175,000
12924 W 7 Mile Rd, Detroit, MI 48235
Large commercial building offering flexible office and retail use, with spaces suited for kitchen and bathrooms plus rear delivery access.
Property Size3,428 SF
Days on Market106
Property Features for 12924 W 7 Mile Rd
General Information
Standard status
Active
Size
3,428 SF
Property subtype
Commercial
Additional Details
Road Access
Yes
Drive-In Doors
1
Taxes and HOA fees
Annual Taxes
$2,299
Building Details
Building Size
3,428 SF
Year Built
1953
Listing Agency:
Keller Williams Royal Oak
(248) 291-8057
Listed By:
Reggie Perryman
(248) 291-8057
Source:
Elliman
Added: May 9
Changed: Aug 8
Last Checked: Aug 22 at 7:09AM
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 Keller Williams Royal Oak
Investment Insights
Based on property information with market context.
This large commercial building is designed for flexible use, with potential configurations for office and retail operations. Available spaces can support buildouts including kitchen and bathroom areas, and the property includes a rear garage door for deliveries.
The building is located on a busy main street with high traffic, positioning it for potential customer exposure. WalkScore is reported at 56, TransitScore at 49, and BikeScore at 43.
With its delivery-ready rear access and adaptable interior space for office or retail functions, the property can be considered for a range of commercial uses that require customer-facing space along with practical back-of-house improvements.
The building is located on a busy main street with high traffic, positioning it for potential customer exposure. WalkScore is reported at 56, TransitScore at 49, and BikeScore at 43.
With its delivery-ready rear access and adaptable interior space for office or retail functions, the property can be considered for a range of commercial uses that require customer-facing space along with practical back-of-house improvements.
Key Highlights
- Large commercial building built in 1953
- Flexible potential uses including office and retail
- Spaces available for kitchen and bathrooms
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
$11,801
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
6.74%
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%
$236,020
$236.0K
Cap Rate 7%
$168,586
$168.6K
Cap Rate 9%
$131,122
$131.1K
Market Conditions
NOI Build-Up for 3,428 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
$20.6K $6.00/SF
− Vacancy
−$4.8K −$1.41/SF
EGI
$15.7K $4.59/SF
− OpEx
−$3.9K −$1.15/SF
NOI
$11.8K $3.44/SF
Area
ZIP 48235
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%
$236,020
Cap Rate 7%
$168,586
Cap Rate 9%
$131,122
Alternative Uses
Best Use
Flex RnD
$446.4K
$390.6K – $520.9K
NOI $31,251 @ 7.0% cap · market cap 17.86%
Second Best
Retail
$432.9K
$378.8K – $505.0K
NOI $30,300 @ 7.0% cap · market cap 17.31%
Theoretical Best
Multifamily LT 5
$485.9K
$425.2K – $566.9K
NOI $34,014 @ 7.0% cap · market cap 19.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
Explore this area
Business Placement
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 Office in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Large commercial building offering flexible office and retail use, with spaces suited for kitchen and bathrooms plus rear delivery access.
Where is this office units located?
The property is located at 12924 W 7 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: Large commercial building built in 1953; Flexible potential uses including office and retail; Spaces available for kitchen and bathrooms
