Gratiot Avenue Warehouse for
For Sale
$2,750,000
1440 Gratiot Ave, Detroit, MI 48207
Six-story, 27,657 SF warehouse suitable for redevelopment in Detroit.
Property Size27,657 SF
Lot Size0.11 Acres
Price / SF$99.43
Days on Market164
Property Features for 1440 Gratiot Ave
General Information
Standard status
Active
Size
27,657 SF
Lot size
0.11 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$58,624
Building Details
Building Size
27,657 SF
Year Built
1922
Listing Agency:
O'Connor Realty Detroit, LLC
(313) 963-9891
Listed By:
Sloane Walsh · License #6501387170
(313) 963-9891
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 21 at 12:11PM
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 O'Connor Realty Detroit, LLC
Investment Insights
Based on property information with market context.
Located on Gratiot Avenue, this six-story, 27,657-square-foot warehouse is suitable for an adaptive reuse conversion into creative office space or residential lofts. The property has been maintained by the current owner and is development-ready. The open floor plan and high ceilings provide a blank canvas for developers or users seeking proximity to Eastern Market and Downtown Detroit. A 14,000-square-foot parking lot behind the building at 1460 Service Drive is included in the sale. This property is part of a collection of properties for sale in and around Eastern Market and can be purchased individually or in multiples.
Key Highlights
- Prime location on Gratiot Avenue with excellent visibility.
- Ideal for adaptive reuse conversion into creative office space or residential lofts.
- Large 14,000‑square‑foot parking lot included.
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
$197,079
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
7.17%
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%
$3,941,580
$3.9M
Cap Rate 7%
$2,815,414
$2.8M
Cap Rate 9%
$2,189,767
$2.2M
Market Conditions
NOI Build-Up for 27,657 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
$242.3K $8.76/SF
− Vacancy
−$10.4K −$0.38/SF
EGI
$231.9K $8.38/SF
− OpEx
−$34.8K −$1.26/SF
NOI
$197.1K $7.13/SF
Area
Detroit, MI
Vacancy
4.30%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
15.00%
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%
$3,941,580
Cap Rate 7%
$2,815,414
Cap Rate 9%
$2,189,767
Alternative Uses
Best Use
Apartment 5plus
$4.14M
$3.63M – $4.84M
NOI $290,141 @ 7.0% cap · market cap 10.55%
Second Best
Office B
$4.00M
$3.50M – $4.67M
NOI $280,191 @ 7.0% cap · market cap 10.19%
Theoretical Best
Office A
$6.10M
$5.34M – $7.12M
NOI $427,087 @ 7.0% cap · market cap 15.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,335
Businesses Nearby
Balanced
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
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Similar Off Market Nearby
- Your Personal Vault — 432 Mechanic St, Detroit, MI 48226
- Your Personal Vault — 1423 Franklin St, Detroit, MI 48207
- Eastern Market Cold Storage Co — 2531 Riopelle St, Detroit, MI 48207
- Egro-Stroh — 1000 Maple St, Detroit, MI 48207
- Self Storage — 1520 Broadway St, Detroit, MI 48226, United States
Frequently Asked Questions
What type of property is this?
Warehouse - Six-story, 27,657 SF warehouse suitable for redevelopment in Detroit.
Where is this warehouse located?
The property is located at 1440 Gratiot Ave Detroit, MI.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: Prime location on Gratiot Avenue with excellent visibility.; Ideal for adaptive reuse conversion into creative office space or residential lofts.; Large 14,000‑square‑foot parking lot included.
