Office Conversion with Basement
For Sale
$200,000
16983 W 10 Mile Road, Southfield, MI 48075
Converted office building on a busy main road with multiple rooms, a sizable basement, and ample front and rear parking.
Property Size1,208 SF
Price / SF$165.56
Days on Market270
Property Features for 16983 W 10 Mile Road
General Information
Standard status
Active
Size
1,208 SF
Property subtype
Commercial
Zoning
Commercial, Office, Recreation, Resident
Lease Term
Cash, Contract, Trade 1031 Exchange, Warranty Deed
Additional Details
Highway Access
Yes
Office Units
3
Taxes and HOA fees
Annual Taxes
$2,968
Building Details
Building Size
1,208 SF
Year Built
1959
Year Renovated
1993
Stories
2
Listing Agency:
Brookstone, Realtors LLC
(248) 249-4999
Listed By:
James J Toma · License #6502406438
(248) 249-4999
Source:
Sabudarealty
Added: Nov 25, 2025
Changed: Aug 8
Last Checked: Aug 21 at 1:58PM
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 Brookstone, Realtors LLC
Investment Insights
Based on property information with market context.
This converted office building was originally set up from a recording studio and was most recently used for storage. The layout includes three offices plus a secretary area and lobby. A full basement provides additional storage, and a tear-off roof replacement approved in 2015 is noted. The property offers a long driveway with parking in front and at the back.
The building sits on a busy commercial main road with multiple businesses and visibility to passing traffic. It is located close to major expressways, supporting easy access for customers, staff, and deliveries.
While the property has been used as an office since a conversion in 1993, it is described as adaptable for multiple purposes such as storage, barbershop, medical, spa, salon, office, and other retail. The combination of dedicated rooms, lobby space, and basement storage can support a range of small business and service-oriented uses, subject to the buyer’s intended configuration and any applicable requirements.
The building sits on a busy commercial main road with multiple businesses and visibility to passing traffic. It is located close to major expressways, supporting easy access for customers, staff, and deliveries.
While the property has been used as an office since a conversion in 1993, it is described as adaptable for multiple purposes such as storage, barbershop, medical, spa, salon, office, and other retail. The combination of dedicated rooms, lobby space, and basement storage can support a range of small business and service-oriented uses, subject to the buyer’s intended configuration and any applicable requirements.
Key Highlights
- Converted office building built in 1959, used as a recording studio and office conversion since 1993
- 3 offices plus a secretary area with lobby
- 1,208 SF basement for storage
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
$16,347
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
8.17%
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%
$326,940
$326.9K
Cap Rate 7%
$233,529
$233.5K
Cap Rate 9%
$181,633
$181.6K
Market Conditions
NOI Build-Up for 1,208 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
$30.4K $25.20/SF
− Vacancy
−$3.2K −$2.65/SF
EGI
$27.2K $22.55/SF
− OpEx
−$10.9K −$9.02/SF
NOI
$16.3K $13.53/SF
Area
Oakland County, MI
Vacancy
10.50%
Lease Rate
$25.20 /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%
$326,940
Cap Rate 7%
$233,529
Cap Rate 9%
$181,633
Alternative Uses
Best Use
Healthcare Medical
$233.5K
$204.3K – $272.5K
NOI $16,347 @ 7.0% cap · market cap 8.17%
Second Best
Office B
$59.4K
$52.0K – $69.3K
NOI $4,159 @ 7.0% cap · market cap 2.08%
Theoretical Best
Specialty Retail
$260.6K
$228.0K – $304.0K
NOI $18,239 @ 7.0% cap · market cap 9.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,171
Businesses Nearby
Explore this area
Business Placement
Demographics for 48075, MI
22,967
Population
10,757
Households
2.1
Avg Household Size
42
Median Age
39%
College-Educated
95%
High-School Grad
7.3 sq mi
ZIP Area
3,146
Density / Sq Mi
$67,630
Median Household Income
$43,417
Median Earnings
$1,284
Median Rent
$218,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Converted office building on a busy main road with multiple rooms, a sizable basement, and ample front and rear parking.
Where is this office building located?
The property is located at 16983 W 10 Mile Road Southfield, MI.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Converted office building built in 1959, used as a recording studio and office conversion since 1993; 3 offices plus a secretary area with lobby; 1,208 SF basement for storage
