Detroit Industrial Flex Space For
For Sale
$650,000
13501 Auburn St, Detroit, MI 48223
Versatile industrial property with income, ideal for investors/owner-users.
Property Size10,000 SF
Lot Size0.44 Acres
Price / SF$65
Days on Market143
Property Features for 13501 Auburn St
General Information
Standard status
Active
Size
10,000 SF
Lot size
0.44 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$19,247
Building Details
Building Size
10,000 SF
Year Built
1964
Listing Agency:
RE/MAX Leading Edge
(313) 721-1217
Listed By:
Ali M Abdallah · License #6502342204
(313) 721-1217
Source:
Elliman
Added: Mar 31
Changed: Aug 14
Last Checked: Aug 20 at 7:18AM
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 RE/MAX Leading Edge
Investment Insights
Based on property information with market context.
This industrial property, located on a well-positioned industrial corridor in Detroit, features three buildings totaling over 10,000 square feet of flexible space. The property is suitable for a variety of industrial or specialized uses. The main building is equipped with 400-amp, 3-phase electrical service, multiple bathrooms, and floor drains. The property is well-suited for MMFLA cultivation and/or processing licenses. The sale includes the adjacent property at 13503 Auburn, adding further value and functionality. The property is currently tenant-occupied, generating $5,600 per month on a NNN lease, which expires in July 2027. The landlord is responsible for taxes on 13503 Auburn, while the tenant covers taxes for 13501 Auburn. This property is ideal for both owner-users and investors seeking a versatile, income-producing industrial asset.
Key Highlights
- Generates $5,600/month income on a NNN lease expiring in July 2027.
- Includes adjacent property at 13503 Auburn, adding value and functionality.
- Three buildings totaling over 10,000 square feet of flexible space.
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
$48,637
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
7.48%
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%
$972,740
$972.7K
Cap Rate 7%
$694,814
$694.8K
Cap Rate 9%
$540,411
$540.4K
Market Conditions
NOI Build-Up for 10,000 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
$73.2K $7.32/SF
− Vacancy
−$3.7K −$0.37/SF
EGI
$69.5K $6.95/SF
− OpEx
−$20.8K −$2.08/SF
NOI
$48.6K $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%
$972,740
Cap Rate 7%
$694,814
Cap Rate 9%
$540,411
Alternative Uses
Best Use
Flex RnD
$1.03M
$897.0K – $1.20M
NOI $71,760 @ 7.0% cap · market cap 11.04%
Second Best
Industrial
$694.8K
$608.0K – $810.6K
NOI $48,637 @ 7.0% cap · market cap 7.48%
Theoretical Best
Office A
$2.21M
$1.93M – $2.57M
NOI $154,423 @ 7.0% cap · market cap 23.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
300
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48223, MI
22,956
Population
11,264
Households
2
Avg Household Size
36
Median Age
19%
College-Educated
91%
High-School Grad
6.1 sq mi
ZIP Area
3,763
Density / Sq Mi
$42,324
Median Household Income
$30,119
Median Earnings
$1,013
Median Rent
$87,700
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Versatile industrial property with income, ideal for investors/owner-users.
Where is this flex space located?
The property is located at 13501 Auburn St Detroit, MI.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Generates $5,600/month income on a NNN lease expiring in July 2027.; Includes adjacent property at 13503 Auburn, adding value and functionality.; Three buildings totaling over 10,000 square feet of flexible space.
