Retail Storefront with Private
For Sale
$80,000
16124 W 7 Mile Road, Detroit, MI 48235
Ready-to-operate storefront includes equipment and a gated outdoor area, with roof and HVAC renovations completed in 2023.
Property Size800 SF
Days on Market53
Property Features for 16124 W 7 Mile Road
General Information
Standard status
Active
Size
800 SF
Property subtype
Commercial
Zoning
Commercial
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Additional Details
Furnished
Yes
Amenities
private parking
gated outdoor area
Building Details
Building Size
800 SF
Year Built
1959
Year Renovated
2023
Stories
1
Listing Agency:
Max Broock, REALTORS-Royal Oak
(313) 544-3199
Listed By:
Justin Bercheny · License #6501428155
(313) 544-3199
Source:
Homesforsaleinmich
Added: Jul 5
Changed: Aug 23
Last Checked: Aug 25 at 9:17AM
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 Max Broock, REALTORS-Royal Oak
Investment Insights
Based on property information with market context.
This ready-to-go retail storefront is currently set up as a barber shop and is being sold with all equipment. The property includes a gated outdoor area that can support parking and/or serve as an extension of the indoor space. Roof, HVAC, and interior renovations were completed in 2023, and the seller notes that major items have been taken care of.
The space is located on Seven Mile Road, just east of Southfield Freeway, in a high-traffic area. Access is described as private parking through an alley. Ownership is limited to the described space only, not the entire strip of buildings.
The offering is for the specific storefront space at 16124 W Seven Mile Rd, Detroit, and showings are available by appointment only.
The space is located on Seven Mile Road, just east of Southfield Freeway, in a high-traffic area. Access is described as private parking through an alley. Ownership is limited to the described space only, not the entire strip of buildings.
The offering is for the specific storefront space at 16124 W Seven Mile Rd, Detroit, and showings are available by appointment only.
Key Highlights
- Ready‑to‑operate storefront currently set up as a barber shop and includes all equipment
- Gated outdoor area for parking or use as an extension of the indoor space
- Roof and HVAC renovations completed in 2023
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
$7,071
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
8.84%
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%
$141,420
$141.4K
Cap Rate 7%
$101,014
$101.0K
Cap Rate 9%
$78,567
$78.6K
Market Conditions
NOI Build-Up for 800 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
$11.0K $13.80/SF
− Vacancy
−$938 −$1.17/SF
EGI
$10.1K $12.63/SF
− OpEx
−$3.0K −$3.79/SF
NOI
$7.1K $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 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%
$141,420
Cap Rate 7%
$101,014
Cap Rate 9%
$78,567
Alternative Uses
Best Use
Retail
$101.0K
$88.4K – $117.9K
NOI $7,071 @ 7.0% cap · market cap 8.84%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$113.4K
$99.2K – $132.3K
NOI $7,938 @ 7.0% cap · market cap 9.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
37k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 50%
Shops & Services 47%
Electronics 4%
Wendy's
Dining
18,328 visits/mo
0.5 miles
BP
Shops & Services
11,900 visits/mo
0.4 miles
AutoZone
Shops & Services
5,282 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
669 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
628 visits/mo
0.4 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
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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- Bob Farr's Florist — 14149 W McNichols Rd, Detroit, MI 48235
Frequently Asked Questions
What type of property is this?
Storefront property - Ready-to-operate storefront includes equipment and a gated outdoor area, with roof and HVAC renovations completed in 2023.
Where is this storefront property located?
The property is located at 16124 W 7 Mile Road Detroit, MI.
What is the asking price?
The asking price for this property is $80,000.
What are key features of this property?
This property features: Ready‑to‑operate storefront currently set up as a barber shop and includes all equipment; Gated outdoor area for parking or use as an extension of the indoor space; Roof and HVAC renovations completed in 2023
