Office Site with Parking
For Sale
Contact for pricing
3490 12 Mile Rd, Berkley, MI 48072
Office property on over two and a half acres featuring a parking garage and multiple parking lot entrances.
Property Size69,878 SF
Price / SF$84.43
Days on Market1285
Property Features for 3490 12 Mile Rd
General Information
Standard status
Active
Size
69,878 SF
Property subtype
OFFICE
Listing Agency:
Tuscola Realty
Listed By:
Jessica Spencer
(989) 871-4321
Source:
Moodyscre
Added: Mar 16, 2023
Changed: Sep 14
Last Checked: Sep 20 at 9:07AM
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 Tuscola Realty
Investment Insights
Based on property information with market context.
This offering is an office property located on over two and a half acres, comprising approximately 69,878 square feet. The site includes a parking garage and multiple parking lot entrances, with accessibility for receiving deliveries.
The property is described as highly visible and easy to access, with convenient access to Woodward Ave. It is also noted as being within walking distance to Royal Oak Beaumont.
According to the city plan proposal noted in the marketing remarks, the property is contemplated for development as luxury high-rise condominiums, with shops and dining at street level. Buyers should verify the current zoning and development approvals with the City of Berkley.
The property is described as highly visible and easy to access, with convenient access to Woodward Ave. It is also noted as being within walking distance to Royal Oak Beaumont.
According to the city plan proposal noted in the marketing remarks, the property is contemplated for development as luxury high-rise condominiums, with shops and dining at street level. Buyers should verify the current zoning and development approvals with the City of Berkley.
Key Highlights
- Office property on over 2.5 acres in downtown Berkley
- Multiple parking lot entrances and a uniquely featured parking garage
- Easily accessible for deliveries
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
$240,555
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
4.08%
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%
$4,811,100
$4.8M
Cap Rate 7%
$3,436,500
$3.4M
Cap Rate 9%
$2,672,833
$2.7M
Market Conditions
NOI Build-Up for 69,878 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
$419.3K $6.00/SF
− Vacancy
−$98.5K −$1.41/SF
EGI
$320.7K $4.59/SF
− OpEx
−$80.2K −$1.15/SF
NOI
$240.6K $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%
$4,811,100
Cap Rate 7%
$3,436,500
Cap Rate 9%
$2,672,833
Alternative Uses
Best Use
Office B
$3.44M
$3.01M – $4.01M
NOI $240,555 @ 7.0% cap · market cap 4.08%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$15.07M
$13.19M – $17.58M
NOI $1,055,046 @ 7.0% cap · market cap 17.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
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
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Office property on over two and a half acres featuring a parking garage and multiple parking lot entrances.
Where is this office building located?
The property is located at 3490 12 Mile Rd Berkley, MI.
What is the asking price?
The asking price for this property is $5,900,000.
What are key features of this property?
This property features: Office property on over 2.5 acres in downtown Berkley; Multiple parking lot entrances and a uniquely featured parking garage; Easily accessible for deliveries
