Office Building with Cold
For Sale
$475,000
3177 Mack Ave, Detroit, MI 48207
Commercial office space includes utility room and large cooler and freezer areas, with security system and cameras included.
Property Size5,836 SF
Days on Market30
Property Features for 3177 Mack Ave
General Information
Standard status
Active
Size
5,836 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$11,188
Building Details
Building Size
5,836 SF
Year Built
1982
Listing Agency:
eXp Realty
(248) 444-9244
Listed By:
Hristo Gueorguiev · License #6501376247
(248) 444-9244
Source:
Elliman
Added: Jul 24
Changed: Aug 14
Last Checked: Aug 22 at 11:20AM
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 eXp Realty
Investment Insights
Based on property information with market context.
The property offers nearly 6,000 square feet of commercial office space, along with a utility room and dedicated cold storage improvements. The facility includes an 860-square-foot cooler and a massive 1,200-square-foot freezer, supporting operations that require refrigerated storage. Cameras and a security system are included.
The property is located on Mack Ave in Detroit, with access described as minutes from Downtown Detroit and close to major freeways. The provided mobility scores indicate a very bikeable and walkable area, with good transit as well.
This is a sale offering for a commercial office configuration that also incorporates substantial freezer and cooler capacity, along with on-site utility space and monitored security.
The property is located on Mack Ave in Detroit, with access described as minutes from Downtown Detroit and close to major freeways. The provided mobility scores indicate a very bikeable and walkable area, with good transit as well.
This is a sale offering for a commercial office configuration that also incorporates substantial freezer and cooler capacity, along with on-site utility space and monitored security.
Key Highlights
- Nearly 6,000 SF commercial space in Detroit, built in 1982
- Office space plus utility room
- Cold storage includes an 860 SF cooler and a 1,200 SF freezer
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
$41,586
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
8.75%
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%
$831,720
$831.7K
Cap Rate 7%
$594,086
$594.1K
Cap Rate 9%
$462,067
$462.1K
Market Conditions
NOI Build-Up for 5,836 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
$51.1K $8.76/SF
− Vacancy
−$2.2K −$0.38/SF
EGI
$48.9K $8.38/SF
− OpEx
−$7.3K −$1.26/SF
NOI
$41.6K $7.13/SF
Area
Detroit, MI
Vacancy
4.30%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
15.00%
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%
$831,720
Cap Rate 7%
$594,086
Cap Rate 9%
$462,067
Alternative Uses
Best Use
Office B
$844.6K
$739.1K – $985.4K
NOI $59,124 @ 7.0% cap · market cap 12.45%
Second Best
Warehouse
$594.1K
$519.8K – $693.1K
NOI $41,586 @ 7.0% cap · market cap 8.75%
Theoretical Best
Office A
$1.29M
$1.13M – $1.50M
NOI $90,121 @ 7.0% cap · market cap 18.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
460
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
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?
Refrigerated & cold storage - Commercial office space includes utility room and large cooler and freezer areas, with security system and cameras included.
Where is this refrigerated & cold storage located?
The property is located at 3177 Mack Ave Detroit, MI.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Nearly 6,000 SF commercial space in Detroit, built in 1982; Office space plus utility room; Cold storage includes an 860 SF cooler and a 1,200 SF freezer
