Flex Space with Garage
For Sale
$199,000
3628 Gratiot Ave, Detroit, MI 48207
Commercially zoned building with dual access, natural-light bay windows, and flexible space for business or creative use.
Property Size2,705 SF
Price / SF$73.57
Days on Market47
Property Features for 3628 Gratiot Ave
General Information
Standard status
Active
Size
2,705 SF
Amenities
dual entry/exit access points
large bay windows
brand-new roof
two oversized garage doors
rooftop activation
Building Details
Year Built
1923
Buildings
1
Listing Agency:
Lambrecht Realty LLC
(313) 449-8558
Listed By:
John W Lambrecht · License #6501375482
Source:
Katie-k
Added: Jul 15
Changed: Aug 29
Last Checked: Aug 25 at 4:57AM
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 Lambrecht Realty LLC
Investment Insights
Based on property information with market context.
Built in 1923, this flex space at 3628 Gratiot Avenue combines a commercial zoning designation with features suited to varied business and creative applications. The building has separate entry and exit points, large bay windows that provide natural light, and two oversized garage doors for loading and access. A new roof is also in place.
The property is in Detroit’s McDougall-Hunt area, near Eastern Market, the Heidelberg Project, and the original Faygo plant. Additional adjacent lots are available for purchase, offering a larger ownership configuration for parties seeking to combine the building with neighboring land.
The property is in Detroit’s McDougall-Hunt area, near Eastern Market, the Heidelberg Project, and the original Faygo plant. Additional adjacent lots are available for purchase, offering a larger ownership configuration for parties seeking to combine the building with neighboring land.
Key Highlights
- Flex space at 3628 Gratiot Avenue in Detroit, MI 48207
- Commercial zoning designation
- Two oversized garage doors support access and logistics
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
$13,156
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
6.61%
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%
$263,120
$263.1K
Cap Rate 7%
$187,943
$187.9K
Cap Rate 9%
$146,178
$146.2K
Market Conditions
NOI Build-Up for 2,705 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
$19.8K $7.32/SF
− Vacancy
−$1.0K −$0.37/SF
EGI
$18.8K $6.95/SF
− OpEx
−$5.6K −$2.08/SF
NOI
$13.2K $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%
$263,120
Cap Rate 7%
$187,943
Cap Rate 9%
$146,178
Alternative Uses
Best Use
Mixed Use
$459.1K
$401.7K – $535.6K
NOI $32,135 @ 7.0% cap · market cap 16.15%
Second Best
Office B
$391.5K
$342.6K – $456.7K
NOI $27,404 @ 7.0% cap · market cap 13.77%
Theoretical Best
Office A
$596.7K
$522.1K – $696.2K
NOI $41,771 @ 7.0% cap · market cap 20.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
437
Businesses Nearby
Under-served
Demand for This Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Commercially zoned building with dual access, natural-light bay windows, and flexible space for business or creative use.
Where is this flex space located?
The property is located at 3628 Gratiot Ave Detroit, MI.
What is the asking price?
The asking price for this property is $199,000.
What are key features of this property?
This property features: Flex space at 3628 Gratiot Avenue in Detroit, MI 48207; Commercial zoning designation; Two oversized garage doors support access and logistics
