Two-Story Office
New
For Sale
$800,000
18600 W 10 Mile Rd, Southfield, MI 48075
Multi-suite office property with kitchens, restrooms, parking, and a finished basement.
Property Size9,520 SF
Price / SF$84.03
Days on Market6
Property Features for 18600 W 10 Mile Rd
General Information
Standard status
Active
Size
9,520 SF
Total Parking Spaces
33
Property subtype
Commercial
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Additional Details
Office Units
24
Building Details
Year Built
1967
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Keller Williams Somerset
Listed By:
James T Silver · License #6502374648
(248) 530-7292
Source:
Metrodetroithomeguide
Added: Sep 15
Changed: Sep 18
Last Checked: Sep 19 at 9:55AM
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 Somerset
Investment Insights
Based on property information with market context.
Built in 1967, this 9,520-square-foot office building includes two levels with 24 offices overall. The first floor contains 12 offices, including 5 current tenants and one vacant space; the second floor has 12 offices with 8 current tenants. Both floors provide a kitchen and separate men's and women's restrooms. Utilities are currently paid by the owner.
A finished basement adds a large open area along with 2 bathrooms, an electrical room, air conditioning room, medical records room, and separate storage room. The property includes 33 parking spaces and is located near major roads and freeways at 18600 W 10 Mile Rd in Southfield, Michigan.
A finished basement adds a large open area along with 2 bathrooms, an electrical room, air conditioning room, medical records room, and separate storage room. The property includes 33 parking spaces and is located near major roads and freeways at 18600 W 10 Mile Rd in Southfield, Michigan.
Key Highlights
- 9,520‑square‑foot office building constructed in 1967
- 24 offices across two floors
- First floor includes 12 offices, 5 current tenants, and one vacant space
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
$32,773
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
4.10%
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%
$655,460
$655.5K
Cap Rate 7%
$468,186
$468.2K
Cap Rate 9%
$364,144
$364.1K
Market Conditions
NOI Build-Up for 9,520 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
$57.1K $6.00/SF
− Vacancy
−$13.4K −$1.41/SF
EGI
$43.7K $4.59/SF
− OpEx
−$10.9K −$1.15/SF
NOI
$32.8K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$655,460
Cap Rate 7%
$468,186
Cap Rate 9%
$364,144
Alternative Uses
Best Use
Office B
$468.2K
$409.7K – $546.2K
NOI $32,773 @ 7.0% cap · market cap 4.10%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.05M
$1.80M – $2.40M
NOI $143,737 @ 7.0% cap · market cap 17.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
24
Office units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,230
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Multi-suite office property with kitchens, restrooms, parking, and a finished basement.
Where is this office building located?
The property is located at 18600 W 10 Mile Rd Southfield, MI.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: 9,520‑square‑foot office building constructed in 1967; 24 offices across two floors; First floor includes 12 offices, 5 current tenants, and one vacant space
