Medical Office Investment
For Sale
$1,167,380
18757 Huron River Dr, New Boston, MI 48164
Medical office space for sale with attractive cap rate.
Property Size4,687 SF
Price / SF$249.07
Days on Market115
Property Features for 18757 Huron River Dr
General Information
Standard status
Active
Size
4,687 SF
Property subtype
Commercial
Occupancy
100%
Lease Term
± 7.2 Years
Net Operating Income
$83,468
Building Details
Building Size
4,687 SF
Listing Agency:
Matthews Real Estate Investments Services | New York
Listed By:
Seamus O'Brien · License #02129205 (CA)
(773) 219-0964
Source:
Matthews
Added: May 16
Changed: Sep 6
Last Checked: Sep 7 at 4:38AM
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 Matthews Real Estate Investments Services | New York
Investment Insights
Based on property information with market context.
This commercial real estate offering features a medical office space spanning 4,687 square feet. The property is currently occupied by a dental operator with over 123 units. The lease structure is absolute NNN, providing a passive investment opportunity. The property offers a 7.15% capitalization rate and includes 3% annual increases in rent.
Key Highlights
- Absolute NNN Lease
- Enjoy a 7.15% Cap Rate
- Benefit from 3% Annual Increases
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
$49,357
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
4.23%
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%
$987,140
$987.1K
Cap Rate 7%
$705,100
$705.1K
Cap Rate 9%
$548,411
$548.4K
Market Conditions
NOI Build-Up for 4,687 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
$93.9K $20.04/SF
− Vacancy
−$11.7K −$2.49/SF
EGI
$82.3K $17.55/SF
− OpEx
−$32.9K −$7.02/SF
NOI
$49.4K $10.53/SF
Area
Wayne County, MI
Vacancy
12.42%
Lease Rate
$20.04 /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%
$987,140
Cap Rate 7%
$705,100
Cap Rate 9%
$548,411
Alternative Uses
Best Use
Healthcare Medical
$705.1K
$617.0K – $822.6K
NOI $49,357 @ 7.0% cap · market cap 4.23%
Second Best
Office B
$230.5K
$201.7K – $268.9K
NOI $16,135 @ 7.0% cap · market cap 1.38%
Theoretical Best
Specialty Retail
$867.8K
$759.3K – $1.01M
NOI $60,744 @ 7.0% cap · market cap 5.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
159
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48164, MI
9,676
Population
3,625
Households
2.7
Avg Household Size
44
Median Age
25%
College-Educated
94%
High-School Grad
30.3 sq mi
ZIP Area
319
Density / Sq Mi
$111,173
Median Household Income
$57,148
Median Earnings
$1,495
Median Rent
$313,700
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?
Medical Office Space - Medical office space for sale with attractive cap rate.
Where is this medical office space located?
The property is located at 18757 Huron River Dr New Boston, MI.
What is the asking price?
The asking price for this property is $1,167,380.
What are key features of this property?
This property features: Absolute NNN Lease; Enjoy a 7.15% Cap Rate; Benefit from 3% Annual Increases
