Medical Office Building with
For Sale
$585,000
16841 Schaefer Highway, Detroit, MI 48235
Renovated medical building includes four exam rooms, physician and management offices, lab, X-ray room, and private parking.
Property Size3,255 SF
Days on Market83
Property Features for 16841 Schaefer Highway
General Information
Standard status
Active
Size
3,255 SF
Property subtype
Commercial
Zoning
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$2,004
Building Details
Building Size
3,255 SF
Year Built
1995
Listing Agency:
Keller Williams Legacy
(313) 706-7011
Listed By:
Nick Jaafar · License #6501403947
Source:
Irishhillsfivestarhomes
Added: Jun 3
Changed: Aug 24
Last Checked: Aug 23 at 6:02AM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
This newly renovated medical office building is currently occupied by a pharmacy and features a built-out medical suite designed for clinical use. The space includes four exam rooms, a physician’s office, a management office, a lab, an X-ray room, two bathrooms, and a shared waiting area.
The property is positioned directly across from Sinai Grace Hospital, with a secure gated staff entrance and a spacious private parking lot. The roof and HVAC system are both in good working condition.
The existing pharmacy is open to remaining and signing a long-term lease to provide immediate income, or it may vacate with 24 months’ notice to accommodate alternative medical or professional uses. All measurements are approximate and should be verified by the buyer’s agent.
The property is positioned directly across from Sinai Grace Hospital, with a secure gated staff entrance and a spacious private parking lot. The roof and HVAC system are both in good working condition.
The existing pharmacy is open to remaining and signing a long-term lease to provide immediate income, or it may vacate with 24 months’ notice to accommodate alternative medical or professional uses. All measurements are approximate and should be verified by the buyer’s agent.
Key Highlights
- Medical office building built in 1995 across from Sinai Grace Hospital
- Newly renovated, with a built‑out suite including four exam rooms, physician’s office, management office, and lab
- Includes an X‑ray room, shared waiting area, and two bathrooms
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
$28,832
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
4.93%
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%
$576,640
$576.6K
Cap Rate 7%
$411,886
$411.9K
Cap Rate 9%
$320,356
$320.4K
Market Conditions
NOI Build-Up for 3,255 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
$51.6K $15.84/SF
− Vacancy
−$3.5K −$1.08/SF
EGI
$48.1K $14.76/SF
− OpEx
−$19.2K −$5.91/SF
NOI
$28.8K $8.86/SF
Area
ZIP 48235
Vacancy
6.80%
Lease Rate
$15.84 /SF/Yr
Expense Ratio
40.00%
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%
$576,640
Cap Rate 7%
$411,886
Cap Rate 9%
$320,356
Alternative Uses
Best Use
Healthcare Medical
$411.9K
$360.4K – $480.5K
NOI $28,832 @ 7.0% cap · market cap 4.93%
Second Best
Office B
$160.1K
$140.1K – $186.8K
NOI $11,205 @ 7.0% cap · market cap 1.92%
Theoretical Best
Multifamily LT 5
$461.4K
$403.7K – $538.3K
NOI $32,298 @ 7.0% cap · market cap 5.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,265
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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 Office in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Renovated medical building includes four exam rooms, physician and management offices, lab, X-ray room, and private parking.
Where is this medical office space located?
The property is located at 16841 Schaefer Highway Detroit, MI.
What is the asking price?
The asking price for this property is $585,000.
What are key features of this property?
This property features: Medical office building built in 1995 across from Sinai Grace Hospital; Newly renovated, with a built‑out suite including four exam rooms, physician’s office, management office, and lab; Includes an X‑ray room, shared waiting area, and two bathrooms
