Direct-Entry Office
New
For Sale
$4,200,000
1403-1475 E 12 Mile Road, Madison Heights, MI 48071
The offering also includes a retail pad site along 12 Mile Road.
Property Size48,034 SF
Price / SF$87.44
Days on Market5
Property Features for 1403-1475 E 12 Mile Road
General Information
Standard status
Active
Size
48,034 SF
Net Rentable
48,034 SF
Total Parking Spaces
383
Property subtype
Office
Zoning
O-1, Office Building
Occupancy
100%
Additional Details
Cap Rate
9.5%
Highway Access
Yes
Building Details
Building Size
48,034 SF
Listing Agency:
KJ Commercial
Listed By:
Kevin Jappaya
(248) 931-1980
Source:
Cpix.resimplifi
Added: Sep 23
Changed: Sep 26
Last Checked: Sep 26 at 3:00PM
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.
This 48,034 RSF office complex in Madison Heights is fully occupied and features direct-entry suites. The property carries O-1, Office Building zoning, and the sale includes a retail pad site on 12 Mile Road.
I-75 and I-696 are minutes away. More than 325,000 people live within a 5-mile radius. The reported cap rate is 9.50%.
I-75 and I-696 are minutes away. More than 325,000 people live within a 5-mile radius. The reported cap rate is 9.50%.
Key Highlights
- 48,034 RSF office complex with 100% occupancy
- 9.50% cap rate
- Retail pad site on 12 Mile Road included in the sale
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - The offering also includes a retail pad site along 12 Mile Road.
Where is this office building located?
The property is located at 1403-1475 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: 48,034 RSF office complex with 100% occupancy; 9.50% cap rate; Retail pad site on 12 Mile Road included in the sale
