Electrical Supply
For Sale
$1,680,000
3774 Joy Road Unit SourceFi, Detroit, MI 48206
Warehouse facility supporting wholesale electrical supplies and lighting fixtures.
Property Size7,350 SF
Price / SF$228.57
Days on Market649
Property Features for 3774 Joy Road Unit SourceFi
General Information
Standard status
Active
Size
7,350 SF
Property subtype
Industrial
Additional Details
Business Included
Yes
Warehouse Space
7,500 SF
Amenities
3
92909290
Building Details
Year Built
19
Listing Agency:
Herbert J Hill Realty Real Estate Master
(313) 587-9707
Listed By:
Herbert Hill Jr · License #6504381646
(313) 587-9707
Source:
Xome
Added: Nov 20, 2024
Changed: Aug 30
Last Checked: Aug 30 at 5:26PM
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 Herbert J Hill Realty Real Estate Master
Investment Insights
Based on property information with market context.
This warehouse property is associated with a wholesale electrical supply operation offering electrical materials and lighting fixtures. The facility is described as warm, dry, and well maintained, providing a straightforward commercial setting for warehouse-oriented use.
The property is located at 3774 Joy Road in Detroit, Michigan, with the address identifying Unit SourceFi and ZIP Code 48206. The operating company was established in 1940, providing a long-established connection to the electrical supply business at this location.
The property is located at 3774 Joy Road in Detroit, Michigan, with the address identifying Unit SourceFi and ZIP Code 48206. The operating company was established in 1940, providing a long-established connection to the electrical supply business at this location.
Key Highlights
- Wholesale electrical supplies and lighting fixtures
- Warehouse described as warm and dry
- Well‑maintained commercial structure
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
$90,529
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
5.39%
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%
$1,810,580
$1.8M
Cap Rate 7%
$1,293,271
$1.3M
Cap Rate 9%
$1,005,878
$1.0M
Market Conditions
NOI Build-Up for 7,350 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
$136.7K $18.60/SF
− Vacancy
−$7.4K −$1.00/SF
EGI
$129.3K $17.60/SF
− OpEx
−$38.8K −$5.28/SF
NOI
$90.5K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$1,810,580
Cap Rate 7%
$1,293,271
Cap Rate 9%
$1,005,878
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.51M
NOI $90,529 @ 7.0% cap · market cap 5.39%
Second Best
Warehouse
$748.2K
$654.7K – $872.9K
NOI $52,375 @ 7.0% cap · market cap 3.12%
Theoretical Best
Office A
$1.62M
$1.42M – $1.89M
NOI $113,501 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
276
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48206, MI
15,712
Population
10,784
Households
1.5
Avg Household Size
38
Median Age
24%
College-Educated
89%
High-School Grad
3.1 sq mi
ZIP Area
5,068
Density / Sq Mi
$43,702
Median Household Income
$36,674
Median Earnings
$923
Median Rent
$102,300
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse facility supporting wholesale electrical supplies and lighting fixtures.
Where is this warehouse located?
The property is located at 3774 Joy Road Unit SourceFi Detroit, MI.
What is the asking price?
The asking price for this property is $1,680,000.
What are key features of this property?
This property features: Wholesale electrical supplies and lighting fixtures; Warehouse described as warm and dry; Well‑maintained commercial structure
