Two-Story Office
New
For Sale
$400,000
18610 W 8 MILE Rd, Southfield, MI 48075
Two-story configuration includes private offices, exam-room-ready plumbing, and a separate outbuilding.
Property Size9,600 SF
Price / SF$41.67
Days on Market2
Property Features for 18610 W 8 MILE Rd
General Information
Standard status
Active
Size
9,600 SF
Property subtype
Commercial
Property Condition
Severity
Repairs Needed
Evidence
needs some work
Additional Details
Highway Access
Yes
Building Details
Year Built
1968
Buildings
2
Stories
2
Listing Agency:
CENTURY 21 Town & Country
(586) 215-1208
Listed By:
Ahmed Arafa · License #6506048224
(586) 215-1208
Source:
Elliman
Added: Aug 21
Changed: Aug 22
Last Checked: Aug 22 at 5:13AM
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 CENTURY 21 Town & Country
Investment Insights
Based on property information with market context.
This 9,600-square-foot office property includes two floors and a 540-square-foot outbuilding. The first level contains multiple private offices, with existing water lines in several rooms that may support exam-room layouts. The upper floor is unfinished, allowing for a customized office plan, and includes designated space for a future elevator. The building dates to 1968 and requires work; the sale is offered as-is.
The property provides access to major expressways and nearby airports. Its configuration can accommodate professional office operations, including medical and dental uses identified in the property information, subject to applicable requirements.
The property provides access to major expressways and nearby airports. Its configuration can accommodate professional office operations, including medical and dental uses identified in the property information, subject to applicable requirements.
Key Highlights
- 9,600‑square‑foot, two‑story office building
- 540‑square‑foot outbuilding included
- Multiple private offices on the first floor
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
$33,048
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
8.26%
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%
$660,960
$661.0K
Cap Rate 7%
$472,114
$472.1K
Cap Rate 9%
$367,200
$367.2K
Market Conditions
NOI Build-Up for 9,600 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
$57.6K $6.00/SF
− Vacancy
−$13.5K −$1.41/SF
EGI
$44.1K $4.59/SF
− OpEx
−$11.0K −$1.15/SF
NOI
$33.0K $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%
$660,960
Cap Rate 7%
$472,114
Cap Rate 9%
$367,200
Alternative Uses
Best Use
Healthcare Medical
$1.86M
$1.62M – $2.17M
NOI $129,911 @ 7.0% cap · market cap 32.48%
Second Best
Office B
$472.1K
$413.1K – $550.8K
NOI $33,048 @ 7.0% cap · market cap 8.26%
Theoretical Best
Specialty Retail
$2.07M
$1.81M – $2.42M
NOI $144,945 @ 7.0% cap · market cap 36.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
914
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 - Two-story configuration includes private offices, exam-room-ready plumbing, and a separate outbuilding.
Where is this office building located?
The property is located at 18610 W 8 MILE Rd Southfield, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 9,600‑square‑foot, two‑story office building; 540‑square‑foot outbuilding included; Multiple private offices on the first floor
