Detroit Retail Strip For
For Sale
$550,000
16005 W McNichols Rd, Detroit, MI 48235
Retail strip with recent updates and high visibility.
Property Size5,669 SF
Price / SF$97.02
Days on Market206
Property Features for 16005 W McNichols Rd
General Information
Standard status
Active
Size
5,669 SF
Property subtype
Retail
Zoning
B2
Building Details
Building Size
5,669 SF
Listing Agency:
Encore Real Estate Investment Services
Listed By:
Jim Papalois · License #6501465180
Source:
Cpix.resimplifi
Added: Mar 31
Changed: Oct 1
Last Checked: Oct 20 at 5:25PM
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
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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.
Financial Insights
Estimated NOI and Cap Rate
NOI / Yr
$50,108
Cap Rate
9.11%
Suggested Prices Based on Cap Rates
Cap Rate 5%
$1,002,160
$1.0M
Cap Rate 7%
$715,829
$715.8K
Cap Rate 9%
$556,756
$556.8K
Market Conditions
NOI Build-Up for 5,669 SF
Gross rent
$78.2K $13.80/SF
− Vacancy
−$6.6K −$1.17/SF
EGI
$71.6K $12.63/SF
− OpEx
−$21.5K −$3.79/SF
NOI
$50.1K $8.84/SF
Area
ZIP 48235
Vacancy
8.50%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap Rate 5%
$1,002,160
Cap Rate 7%
$715,829
Cap Rate 9%
$556,756
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 authorities.
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Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
597
Businesses Nearby
45k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 84%
Shops & Services 16%
McDonald's
Dining
25,607 visits/mo
0.3 miles
Taco Bell
Dining
12,576 visits/mo
0.3 miles
Marathon Petroleum
Shops & Services
7,257 visits/mo
0.0 miles
Demographics for 48235, MI
45,188
Population
20,946
Households
2.2
Avg Household Size
39
Median Age
15%
College-Educated
91%
High-School Grad
6.2 sq mi
ZIP Area
7,288
Density / Sq Mi
$41,011
Median Household Income
$31,545
Median Earnings
$1,151
Median Rent
$79,400
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 Retail in Detroit, MI
Frequently Asked Questions
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.
