Office Complex with Direct-Entry
New
For Sale
$4,200,000
1403-1471 E 12 Mile Road, Madison Heights, MI 48071
The offering includes a retail pad site on 12 Mile Road alongside fully occupied office space.
Property Size48,034 SF
Price / SF$87.44
Days on Market2
Property Features for 1403-1471 E 12 Mile Road
General Information
Standard status
Active
Size
48,034 SF
Net Rentable
48,034 SF
Class
B
Property subtype
Office
Occupancy
100%
Additional Details
Highway Access
Yes
Amenities
landscaped park-like setting
direct-entry suites
Building Details
Building Size
48,034 SF
Listing Agency:
KJ Commercial
Listed By:
Kevin Jappaya, CCIM
(248) 931-1980
Source:
Kjcre
Added: Sep 26
Last Checked: Sep 26 at 2:52PM
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 KJ Commercial
Investment Insights
Based on property information with market context.
The office property has direct-entry suites and is reported at 100% occupancy. A retail pad site on 12 Mile Road is part of the offering, although some buildings within the complex are excluded from the sale. The property is professionally managed and maintained, with landscaped grounds and abundant parking.
Regional access is available from I-75 and I-696, both described as minutes away. More than 325,000 people live within a 5-mile radius.
Regional access is available from I-75 and I-696, both described as minutes away. More than 325,000 people live within a 5-mile radius.
Key Highlights
- 100% occupancy
- Retail pad site on 12 Mile Road included in the offering
- Direct‑entry office suites
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
$165,357
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
3.94%
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%
$3,307,140
$3.3M
Cap Rate 7%
$2,362,243
$2.4M
Cap Rate 9%
$1,837,300
$1.8M
Market Conditions
NOI Build-Up for 48,034 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
$288.2K $6.00/SF
− Vacancy
−$67.7K −$1.41/SF
EGI
$220.5K $4.59/SF
− OpEx
−$55.1K −$1.15/SF
NOI
$165.4K $3.44/SF
Area
Oakland 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%
$3,307,140
Cap Rate 7%
$2,362,243
Cap Rate 9%
$1,837,300
Alternative Uses
Best Use
Office B
$2.36M
$2.07M – $2.76M
NOI $165,357 @ 7.0% cap · market cap 3.94%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$10.36M
$9.07M – $12.09M
NOI $725,237 @ 7.0% cap · market cap 17.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
574
Businesses Nearby
Explore this area
Business Placement
Demographics for 48071, MI
28,468
Population
14,690
Households
1.9
Avg Household Size
39
Median Age
32%
College-Educated
89%
High-School Grad
7.1 sq mi
ZIP Area
4,010
Density / Sq Mi
$66,726
Median Household Income
$49,151
Median Earnings
$1,138
Median Rent
$190,300
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 - The offering includes a retail pad site on 12 Mile Road alongside fully occupied office space.
Where is this office building located?
The property is located at 1403-1471 E 12 Mile Road Madison Heights, MI.
What is the asking price?
The asking price for this property is $4,200,000.
What are key features of this property?
This property features: 100% occupancy; Retail pad site on 12 Mile Road included in the offering; Direct‑entry office suites
