Downtown Livonia Medical Office
For Sale
$525,000
15357 Farmington Rd, Livonia, MI 48154
2,761 sq ft medical office building in downtown Livonia.
Property Size2,761 SF
Price / SF$190.15
Days on Market143
Property Features for 15357 Farmington Rd
General Information
Standard status
Active
Size
2,761 SF
Building Details
Year Built
1954
Listing Agency:
Van Esley Real Estate Inc
Listed By:
David D Misko · License #6501351778
(734) 459-7570
Source:
Katie-k
Added: Apr 24
Changed: Sep 6
Last Checked: Sep 12 at 12:19PM
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 Van Esley Real Estate Inc
Investment Insights
Based on property information with market context.
Located in the heart of Downtown Livonia, this 2,761 sq ft building is for sale. Currently used as a medical office, it features two units with separate utilities. The property includes 16 parking spots and is zoned C-2. The south unit was previously used as a dental office, and the underground lines are still in place. The location has a walk score of 19, indicating it is car-dependent, and a bike score of 31, meaning it is somewhat bikeable. Land contract terms are possible. The property is suitable for commercial real estate and office space.
Key Highlights
- Prime "Downtown Livonia" location.
- 2,761 sq ft building with 2 separate units.
- Zoned C‑2 for commercial use.
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
$29,075
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
5.54%
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%
$581,500
$581.5K
Cap Rate 7%
$415,357
$415.4K
Cap Rate 9%
$323,056
$323.1K
Market Conditions
NOI Build-Up for 2,761 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
$55.3K $20.04/SF
− Vacancy
−$6.9K −$2.49/SF
EGI
$48.5K $17.55/SF
− OpEx
−$19.4K −$7.02/SF
NOI
$29.1K $10.53/SF
Area
Wayne County, MI
Vacancy
12.42%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
40.00%
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%
$581,500
Cap Rate 7%
$415,357
Cap Rate 9%
$323,056
Alternative Uses
Best Use
Healthcare Medical
$415.4K
$363.4K – $484.6K
NOI $29,075 @ 7.0% cap · market cap 5.54%
Second Best
Office B
$135.8K
$118.8K – $158.4K
NOI $9,505 @ 7.0% cap · market cap 1.81%
Theoretical Best
Specialty Retail
$511.2K
$447.3K – $596.4K
NOI $35,783 @ 7.0% cap · market cap 6.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
545
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48154, MI
37,864
Population
15,330
Households
2.5
Avg Household Size
47
Median Age
44%
College-Educated
95%
High-School Grad
11.6 sq mi
ZIP Area
3,264
Density / Sq Mi
$103,763
Median Household Income
$59,017
Median Earnings
$1,197
Median Rent
$285,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 2,761 sq ft medical office building in downtown Livonia.
Where is this medical office space located?
The property is located at 15357 Farmington Rd Livonia, MI.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Prime "Downtown Livonia" location.; 2,761 sq ft building with 2 separate units.; Zoned C‑2 for commercial use.
