Two-Story Office Building with
For Sale
$369,900
6748 ALLEN RD, Allen Park, MI 48101
Two-story office building with a new ADA lavatory and a wide-open second-floor flex room.
Property Size3,600 SF
Price / SF$103.90
Days on Market700
Property Features for 6748 ALLEN RD
General Information
Standard status
Active
Size
3,600 SF
Property subtype
Industrial
Additional Details
Road Access
Yes
Amenities
lobby with seating
kitchenette
storage rooms
3
Rubber
Building Details
Year Built
19
Buildings
1
Stories
2
Building Size
3,600 SF
Owner Occupied
Yes
Listing Agency:
Real Estate Unlimited, Inc
(313) 383-4400
Listed By:
Jeffrey Daniel · License #6501158034
Source:
Xome
Added: Sep 12, 2024
Changed: Aug 12
Last Checked: Aug 12 at 3:35AM
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 Real Estate Unlimited, Inc
Investment Insights
Based on property information with market context.
This two-story office building is designed for flexible tenant use, with several large offices on the first floor plus a lobby with seating and a new ADA lavatory. The second floor features a large, wide-open flex room, along with additional lavatory space, storage rooms, and a couple of possible offices currently occupied by the owners.
Located right in the heart of the downtown Allen Park business district, the property offers high visibility and is described as having nearly 3,600 square feet overall. Client access is supported with an entrance off Allen Road and an additional entrance at the rear of the building, with lots of parking described as municipal free parking plus on-site parking. The surrounding area is active with shopping, dining, medical and dental offices, and other daily-destination businesses.
The property is available for sale and is also described as for lease, with professional management mentioned in the remarks.
Located right in the heart of the downtown Allen Park business district, the property offers high visibility and is described as having nearly 3,600 square feet overall. Client access is supported with an entrance off Allen Road and an additional entrance at the rear of the building, with lots of parking described as municipal free parking plus on-site parking. The surrounding area is active with shopping, dining, medical and dental offices, and other daily-destination businesses.
The property is available for sale and is also described as for lease, with professional management mentioned in the remarks.
Key Highlights
- First‑floor offices plus lobby with seating and a new ADA lavatory
- Second‑floor wide‑open flex room plus additional lavatory space
- Second‑floor flex room is approx. 1200 SF
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
$12,255
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
3.31%
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%
$245,100
$245.1K
Cap Rate 7%
$175,071
$175.1K
Cap Rate 9%
$136,167
$136.2K
Market Conditions
NOI Build-Up for 3,560 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
$21.4K $6.00/SF
− Vacancy
−$5.0K −$1.41/SF
EGI
$16.3K $4.59/SF
− OpEx
−$4.1K −$1.15/SF
NOI
$12.3K $3.44/SF
Area
Wayne 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%
$245,100
Cap Rate 7%
$175,071
Cap Rate 9%
$136,167
Alternative Uses
Best Use
Office B
$175.1K
$153.2K – $204.3K
NOI $12,255 @ 7.0% cap · market cap 3.31%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$659.1K
$576.7K – $769.0K
NOI $46,138 @ 7.0% cap · market cap 12.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
959
Businesses Nearby
Explore this area
Business Placement
Demographics for 48101, MI
28,664
Population
12,413
Households
2.3
Avg Household Size
41
Median Age
30%
College-Educated
94%
High-School Grad
7.0 sq mi
ZIP Area
4,095
Density / Sq Mi
$80,045
Median Household Income
$51,658
Median Earnings
$1,181
Median Rent
$174,500
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?
Office building - Two-story office building with a new ADA lavatory and a wide-open second-floor flex room.
Where is this office building located?
The property is located at 6748 ALLEN RD Allen Park, MI.
What is the asking price?
The asking price for this property is $369,900.
What are key features of this property?
This property features: First‑floor offices plus lobby with seating and a new ADA lavatory; Second‑floor wide‑open flex room plus additional lavatory space; Second‑floor flex room is approx. 1200 SF
