Flex Space with Five-Ton
For Sale
Contact for pricing
12221 Dixie, Redford, MI 48239
Flex space with M2 zoning, executive-style offices, epoxy floors, heavy power, and crane service for efficient operations.
Property Size12,000 SF
Price / SF$72.92
Days on Market509
Property Features for 12221 Dixie
General Information
Standard status
Active
Size
12,000 SF
Property subtype
INDUSTRIAL
Zoning
M2
Additional Details
Asking Price
$875,000
Heavy Power
Yes
Building Details
Building Size
12,000 SF
Listing Agency:
NAI Farbman | Detroit
(248) 353-0500
Listed By:
Michael Kalil
(248) 351-4386
Source:
Moodyscre
Added: Apr 25, 2025
Changed: Sep 7
Last Checked: Sep 15 at 11:45AM
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 NAI Farbman | Detroit
Investment Insights
Based on property information with market context.
This flex space offers approximately 12,000 SF designed for light industrial and warehouse-style use, with executive-style offices built into the layout. Interior finishes include epoxy floors, supporting durability and day-to-day operations.
The facility is equipped with heavy power and includes crane capacity with (2) 5 Ton cranes. Loading functionality is supported by a 12 x 14 OHD.
Zoned M2, the property is set up for business users seeking a functional flex platform with both office presence and material-handling capability.
The facility is equipped with heavy power and includes crane capacity with (2) 5 Ton cranes. Loading functionality is supported by a 12 x 14 OHD.
Zoned M2, the property is set up for business users seeking a functional flex platform with both office presence and material-handling capability.
Key Highlights
- Approximately 12,000 SF flex space
- M2 zoning
- Heavy power
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
$58,364
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
6.67%
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%
$1,167,280
$1.2M
Cap Rate 7%
$833,771
$833.8K
Cap Rate 9%
$648,489
$648.5K
Market Conditions
NOI Build-Up for 12,000 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
$87.8K $7.32/SF
− Vacancy
−$4.5K −$0.37/SF
EGI
$83.4K $6.95/SF
− OpEx
−$25.0K −$2.08/SF
NOI
$58.4K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$1,167,280
Cap Rate 7%
$833,771
Cap Rate 9%
$648,489
Alternative Uses
Best Use
Flex RnD
$1.23M
$1.08M – $1.44M
NOI $86,112 @ 7.0% cap · market cap 9.84%
Second Best
Warehouse
$1.22M
$1.07M – $1.43M
NOI $85,510 @ 7.0% cap · market cap 9.77%
Theoretical Best
Office A
$2.65M
$2.32M – $3.09M
NOI $185,307 @ 7.0% cap · market cap 21.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
355
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48239, MI
36,814
Population
14,869
Households
2.5
Avg Household Size
40
Median Age
23%
College-Educated
93%
High-School Grad
9.5 sq mi
ZIP Area
3,875
Density / Sq Mi
$69,373
Median Household Income
$41,113
Median Earnings
$1,355
Median Rent
$145,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Flex space - Flex space with M2 zoning, executive-style offices, epoxy floors, heavy power, and crane service for efficient operations.
Where is this flex space located?
The property is located at 12221 Dixie Redford, MI.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Approximately 12,000 SF flex space; M2 zoning; Heavy power
