Joy Rd Investment
For Sale
$179,900
15142 JOY Rd, Detroit, MI 48228
Commercial real estate package with income potential near Dearborn.
Property Size2,062 SF
Lot Size0.05 Acres
Days on Market165
Property Features for 15142 JOY Rd
General Information
Standard status
Active
Size
2,062 SF
Lot size
0.05 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,019
Building Details
Building Size
2,062 SF
Year Built
1931
Listing Agency:
RE/MAX Leading Edge
(313) 777-2700
Listed By:
Nader Rammal · License #6501389142
(313) 777-2700
Source:
Elliman
Added: Mar 10
Changed: Aug 14
Last Checked: Aug 20 at 12:10PM
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 commercial real estate package features three parcels, including a separate upper efficiency apartment, situated on a 60 x 100 lot. The property is located in an area known for its auto industry, minutes from Dearborn. Modern updates include new electrical, plumbing, and roofing, along with two new door bays. The apartment has a separate entrance and utilities. The property currently generates $2,500 in monthly income from a detail shop and rented apartment. There is potential for expansion, with security fencing and parking for up to 18 cars. The additional vacant space is suitable for storage, warehousing, or further development.
Key Highlights
- High income potential with $2,500 monthly from detail shop and apartment rentals.
- Modern updates including new electrical, plumbing, and roofing.
- Prime location in a sought‑after area near Dearborn, known for its auto industry.
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
$12,100
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
6.73%
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%
$242,000
$242.0K
Cap Rate 7%
$172,857
$172.9K
Cap Rate 9%
$134,444
$134.4K
Market Conditions
NOI Build-Up for 2,062 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
$18.1K $8.76/SF
− Vacancy
−$777 −$0.38/SF
EGI
$17.3K $8.38/SF
− OpEx
−$5.2K −$2.51/SF
NOI
$12.1K $5.87/SF
Area
ZIP 48228
Vacancy
4.30%
Lease Rate
$8.76 /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%
$242,000
Cap Rate 7%
$172,857
Cap Rate 9%
$134,444
Alternative Uses
Best Use
Retail
$362.8K
$317.5K – $423.3K
NOI $25,397 @ 7.0% cap · market cap 14.12%
Second Best
Industrial
$172.9K
$151.3K – $201.7K
NOI $12,100 @ 7.0% cap · market cap 6.73%
Theoretical Best
Office A
$423.5K
$370.6K – $494.1K
NOI $29,647 @ 7.0% cap · market cap 16.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
474
Businesses Nearby
31k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 64%
Dining 36%
White Castle
Dining
11,027 visits/mo
0.2 miles
Family Dollar
Shops & Services
5,404 visits/mo
0.5 miles
Advance Auto Parts
Shops & Services
5,244 visits/mo
0.2 miles
Mobil
Shops & Services
4,667 visits/mo
0.4 miles
Sunoco
Shops & Services
4,291 visits/mo
0.4 miles
Demographics for 48228, MI
53,893
Population
22,620
Households
2.4
Avg Household Size
31
Median Age
11%
College-Educated
78%
High-School Grad
8.9 sq mi
ZIP Area
6,055
Density / Sq Mi
$31,485
Median Household Income
$27,533
Median Earnings
$1,086
Median Rent
$55,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Commercial real estate package with income potential near Dearborn.
Where is this auto shop located?
The property is located at 15142 JOY Rd Detroit, MI.
What is the asking price?
The asking price for this property is $179,900.
What are key features of this property?
This property features: High income potential with $2,500 monthly from detail shop and apartment rentals.; Modern updates including new electrical, plumbing, and roofing.; Prime location in a sought‑after area near Dearborn, known for its auto industry.
