Detroit Retail Strip For
16005 W McNichols Rd Detroit, MI 48235
16005 W McNichols Rd, Detroit, MI, 48235
$550,000
For Sale
$550,000
Retail strip with recent updates and high visibility.
Property Size5,669 SF
Price / SF$97.02
Days on Market114
Property Features for 16005 W McNichols Rd
General Information
- Standard status
- Active
- Size
- 5,669 SF
- Property subtype
- Retail
Listing agency
Encore Real Estate Investment Services
Listed by
Jim Papalois
Source
Cpix.resimplifi
Added: Mar 31 Updated: Jul 10 at 1:16PM Checked: Jul 22 at 2:15AM
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 Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
This single-story retail strip offers a functional layout with multiple entrances, supporting flexible multi-tenant configurations. Located on West McNichols within an established neighborhood commercial corridor, the property benefits from strong daily traffic, excellent visibility and signage, and on-site parking with convenient ingress and egress. The property is situated in a dense trade area with approximately 21,549 residents within 1 mile, 155,615 within 3 miles, and 392,525 within 5 miles. The B2 zoning allows a broad range of commercial uses, supporting both owner-user and investor strategies. Recent capital improvements from 2022 to 2024 include a new roof in 2022 with full tear-off and all new metal decking, new plumbing and electrical in 2024, three new 5-ton N32 HVAC units in 2024, a refreshed façade, full exterior painting, and a redone parking lot. The property has a total size of 5,669 square feet. The current Net Operating Income (NOI) is $69,045, with a 12.6% cap rate.
Key Highlights
- High Cap Rate: Current NOI of $69,045 provides a 12.6% cap rate, indicating strong investment returns.
- Recent Capital Improvements: Substantial renovations from 2022‑2024, including a new roof, plumbing, electrical, HVAC units, façade refresh, and parking lot, minimizing near‑term capital expenditures.
- Low Cost Basis: Purchase price of $106 per SF offers an attractive entry point for Detroit infill retail.
Local Financial Insights For Retail
Simulate Cap Rate and NOI
NOI Build-Up
- 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.
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $78.2k | $13.80 |
| − Vacancy | −$6.6k | −$1.17 |
| EGI | $71.6k | $12.63 |
| − OpEx | −$21.5k | −$3.79 |
| NOI | $50.1k | $8.84 |
5,669 SF · lease $13.80/SF/yr · vacancy 8.50% · expense 30.00%
Alternative Uses
Best Use
Retail
$715.8K
$626.4K – $835.1K
NOI $50,108 @ 7.0% cap · market cap 9.11%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$803.6K
$703.1K – $937.5K
NOI $56,251 @ 7.0% cap · market cap 10.23%
Zoning and permitted uses should be independently verified with local authorities.
Property Analytics
Property Profile
Location Intelligence
Current Use by Public Records
Domino's Pizza
Restaurant
Similar For Sale Nearby
FAQs
What type of property is this?
Strip mall - Retail strip with recent updates and high visibility.
Where is this strip mall located?
The property is located at 16005 W McNichols Rd Detroit, MI.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: High Cap Rate: Current NOI of $69,045 provides a 12.6% cap rate, indicating strong investment returns.; Recent Capital Improvements: Substantial renovations from 2022‑2024, including a new roof, plumbing, electrical, HVAC units, façade refresh, and parking lot, minimizing near‑term capital expenditures.; Low Cost Basis: Purchase price of $106 per SF offers an attractive entry point for Detroit infill retail.
