Freestanding Retail
New
For Sale
$2,450,000
1600 North Stephenson Highway, Royal Oak, MI 48067
Flexible retail premises with prominent signage opportunities and on-site parking for customers.
Property Size13,000 SF
Price / SF$188.46
Days on Market7
Property Features for 1600 North Stephenson Highway
General Information
Standard status
Active
Size
13,000 SF
Building Details
Buildings
1
Listing Agency:
(248) 490-1443
Listed By:
Matthew Brimer · License #6501459842
(248) 490-1443
Source:
Expcommercial
Added: Aug 10
Changed: Aug 14
Last Checked: Aug 16 at 3:00AM
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 Matthew Brimer
Investment Insights
Based on property information with market context.
This freestanding retail building at 1600 North Stephenson Highway in Royal Oak, Michigan, contains 13,000 SF of commercial space. Its layout is described as adaptable, providing room for a range of retail business configurations within a single-occupant building format.
The property includes prominent signage opportunities and ample parking for customer use. Its location in Royal Oak’s commercial area provides an established setting for a retail operation seeking a visible physical presence.
The property includes prominent signage opportunities and ample parking for customer use. Its location in Royal Oak’s commercial area provides an established setting for a retail operation seeking a visible physical presence.
Key Highlights
- 13,000 SF freestanding retail building
- Located at 1600 North Stephenson Highway, Royal Oak, MI 48067
- Adaptable layout for a range of retail business configurations
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
$139,885
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
5.71%
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%
$2,797,700
$2.8M
Cap Rate 7%
$1,998,357
$2.0M
Cap Rate 9%
$1,554,278
$1.6M
Market Conditions
NOI Build-Up for 13,000 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
$218.4K $16.80/SF
− Vacancy
−$18.6K −$1.43/SF
EGI
$199.8K $15.37/SF
− OpEx
−$60.0K −$4.61/SF
NOI
$139.9K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$2,797,700
Cap Rate 7%
$1,998,357
Cap Rate 9%
$1,554,278
Alternative Uses
Best Use
Retail
$2.00M
$1.75M – $2.33M
NOI $139,885 @ 7.0% cap · market cap 5.71%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.80M
$2.45M – $3.27M
NOI $196,279 @ 7.0% cap · market cap 8.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
375
Businesses Nearby
62k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 54%
Dining 46%
Taco Bell
Dining
14,702 visits/mo
0.4 miles
Tim Hortons
Dining
9,596 visits/mo
0.2 miles
BP
Shops & Services
8,064 visits/mo
0.2 miles
Mobil
Shops & Services
7,278 visits/mo
0.4 miles
7-Eleven
Shops & Services
7,240 visits/mo
0.3 miles
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Kroger Floral — 2200 Twelve Mile Rd, Royal Oak, MI 48067
Frequently Asked Questions
What type of property is this?
Storefront property - Flexible retail premises with prominent signage opportunities and on-site parking for customers.
Where is this storefront property located?
The property is located at 1600 North Stephenson Highway Royal Oak, MI.
What is the asking price?
The asking price for this property is $2,450,000.
What are key features of this property?
This property features: 13,000 SF freestanding retail building; Located at 1600 North Stephenson Highway, Royal Oak, MI 48067; Adaptable layout for a range of retail business configurations
