Southgate Office Conversion
For Sale
$99,900
Pending
15602 Northline Rd, Southgate, MI 48195
1644 SF property with business use potential in Southgate.
Property Size1,644 SF
Lot Size0.09 Acres
Days on Market165
Property Features for 15602 Northline Rd
General Information
Standard status
Pending
Size
1,644 SF
Lot size
0.09 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,050
Building Details
Building Size
1,644 SF
Year Built
1900
Listing Agency:
KW Professionals
(248) 762-9186
Listed By:
Sean Konja · License #6502408794
(248) 762-9186
Source:
Elliman
Added: Mar 10
Changed: Aug 16
Last Checked: Aug 20 at 11:16AM
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 KW Professionals
Investment Insights
Based on property information with market context.
This property offers 1,644 square feet of living space, featuring 3 bedrooms and 1 bath. It includes a basement and a 2-car detached garage. Located in the Southgate School District, the property is zoned RO-1 Restricted Office. Permitted uses include office buildings, medical offices (including labs and clinics), facilities for human care such as hospitals and sanitariums, banks, credit unions, barber shops, and beauty shops. All business uses must be approved by the city. The property has potential for various uses, including residential, rental, or conversion for business purposes. Note that the back of the home near the kitchen/laundry area has water damage. The property is being sold AS-IS.
Key Highlights
- 1,644 SQFT of living space with 3 bedrooms and a basement.
- RO‑1 Restricted Office zoning allows for diverse business uses (subject to city approval).
- Located in the Southgate School District.
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
$5,659
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
5.66%
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%
$113,180
$113.2K
Cap Rate 7%
$80,843
$80.8K
Cap Rate 9%
$62,878
$62.9K
Market Conditions
NOI Build-Up for 1,644 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
$9.9K $6.00/SF
− Vacancy
−$2.3K −$1.41/SF
EGI
$7.5K $4.59/SF
− OpEx
−$1.9K −$1.15/SF
NOI
$5.7K $3.44/SF
Area
Wayne 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%
$113,180
Cap Rate 7%
$80,843
Cap Rate 9%
$62,878
Alternative Uses
Best Use
Office B
$80.8K
$70.7K – $94.3K
NOI $5,659 @ 7.0% cap · market cap 5.66%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$304.4K
$266.3K – $355.1K
NOI $21,306 @ 7.0% cap · market cap 21.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
502
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48195, MI
30,014
Population
13,033
Households
2.3
Avg Household Size
42
Median Age
21%
College-Educated
89%
High-School Grad
6.9 sq mi
ZIP Area
4,350
Density / Sq Mi
$64,635
Median Household Income
$43,368
Median Earnings
$1,102
Median Rent
$165,400
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 space - 1644 SF property with business use potential in Southgate.
Where is this office space located?
The property is located at 15602 Northline Rd Southgate, MI.
What is the asking price?
The asking price for this property is $99,900.
What are key features of this property?
This property features: 1,644 SQFT of living space with 3 bedrooms and a basement.; RO‑1 Restricted Office zoning allows for diverse business uses (subject to city approval).; Located in the Southgate School District.
