Two-Story Office
For Sale
Contact for pricing
18610 W 8 Mile, Southfield, MI 48075
Office property with private rooms, first-floor water lines, and unfinished upper-level space for customization.
Property Size9,600 SF
Price / SF$41.67
Days on Market11
Property Features for 18610 W 8 Mile
General Information
Standard status
Active
Size
9,600 SF
Elevators
No
Property subtype
Special Purpose
Property Condition
Severity
Repairs Needed
Evidence
needs some work
Additional Details
Highway Access
Yes
Building Details
Year Built
1968
Buildings
2
Stories
2
Building Size
9,600 SF
Listing Agency:
CENTURY 21 Town & Country Realty Utica
(586) 215-1208
Listed By:
AHMED ARAFA · License #6506048224
Source:
Crexi
Added: Aug 21
Changed: Aug 31
Last Checked: Aug 31 at 9:52AM
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 Realty Utica
Investment Insights
Based on property information with market context.
Built in 1968, this two-story office property contains approximately 9,600 square feet, along with a separate 540-square-foot outbuilding. The first floor is divided into multiple private offices, and several rooms have existing water lines that may support medical, dental, or other professional office configurations. The upper floor remains unfinished and includes space designed for a future elevator.
The property is being sold AS-IS and requires work. It offers access to major expressways and nearby airports, with land contract terms available. The building can accommodate office uses ranging from professional services to medical and dental operations, subject to applicable requirements.
The property is being sold AS-IS and requires work. It offers access to major expressways and nearby airports, with land contract terms available. The building can accommodate office uses ranging from professional services to medical and dental operations, subject to applicable requirements.
Key Highlights
- 9,600 sq. ft. two‑story office building plus a 540 sq. ft. outbuilding
- Multiple private offices on the first floor
- Several first‑floor offices include existing water lines
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
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
364
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 - Office property with private rooms, first-floor water lines, and unfinished upper-level space for customization.
Where is this office building located?
The property is located at 18610 W 8 Mile 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 sq. ft. two‑story office building plus a 540 sq. ft. outbuilding; Multiple private offices on the first floor; Several first‑floor offices include existing water lines
