Updated Commercial Property in
For Sale
$500,000
20011 John R Street, Detroit, MI 48203
Turnkey investment opportunity with established business and real estate.
Property Size4,143 SF
Price / SF$120.69
Days on Market125
Property Features for 20011 John R Street
General Information
Standard status
Active
Size
4,143 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$3,820
Building Details
Building Size
4,143 SF
Year Built
1947
Listing Agency:
Next Level Realty LLC
(586) 843-4505
Listed By:
Karly Hirmiz
(586) 843-4505
Source:
Phgrealty
Added: Apr 21
Changed: Aug 23
Last Checked: Aug 23 at 6:46AM
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 Next Level Realty LLC
Investment Insights
Based on property information with market context.
A commercial property in Detroit offers an opportunity to own a fully updated building with an established presence. The 4,143 square foot building was fully demolished and rebuilt in 2012, including major mechanical upgrades to the HVAC, electrical, and structural systems. The business holds credentials including auto parts dealer, used dealer, salvage, body & collision, and auto repair licenses. The location, just south of 8 Mile road, enhances customer flow and provides an efficient layout that supports retail, storage, and service needs. The property has a walk score of 55, indicating it is somewhat walkable, and a bike score of 46, indicating it is somewhat bikeable. This property is suitable for an owner-operator or investor.
Key Highlights
- Turnkey investment opportunity including both business and real estate.
- Fully updated 4,143 sqft building rebuilt in 2012.
- Multiple business licenses: auto parts dealer, used dealer, salvage, body & collision, and auto repair.
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
$20,150
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
4.03%
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%
$403,000
$403.0K
Cap Rate 7%
$287,857
$287.9K
Cap Rate 9%
$223,889
$223.9K
Market Conditions
NOI Build-Up for 4,143 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
$30.3K $7.32/SF
− Vacancy
−$1.5K −$0.37/SF
EGI
$28.8K $6.95/SF
− OpEx
−$8.6K −$2.08/SF
NOI
$20.2K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /SF/Yr
Expense Ratio
30.00%
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%
$403,000
Cap Rate 7%
$287,857
Cap Rate 9%
$223,889
Alternative Uses
Best Use
Retail
$729.0K
$637.9K – $850.5K
NOI $51,029 @ 7.0% cap · market cap 10.21%
Second Best
Industrial
$287.9K
$251.9K – $335.8K
NOI $20,150 @ 7.0% cap · market cap 4.03%
Theoretical Best
Office A
$914.0K
$799.7K – $1.07M
NOI $63,977 @ 7.0% cap · market cap 12.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
409
Businesses Nearby
13k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 95%
Electronics 5%
Sunoco
Shops & Services
6,373 visits/mo
0.5 miles
Citgo
Shops & Services
6,344 visits/mo
0.0 miles
Metro by T-Mobile
Electronics
713 visits/mo
0.4 miles
Demographics for 48203, MI
22,168
Population
13,591
Households
1.6
Avg Household Size
39
Median Age
19%
College-Educated
85%
High-School Grad
8.2 sq mi
ZIP Area
2,703
Density / Sq Mi
$35,108
Median Household Income
$28,364
Median Earnings
$799
Median Rent
$76,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Budget Truck Rental — 871 8 Mile Rd, Hazel Park, MI 48030
Frequently Asked Questions
What type of property is this?
Automotive property - Turnkey investment opportunity with established business and real estate.
Where is this automotive property located?
The property is located at 20011 John R Street Detroit, MI.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Turnkey investment opportunity including both business and real estate.; Fully updated 4,143 sqft building rebuilt in 2012.; Multiple business licenses: auto parts dealer, used dealer, salvage, body & collision, and auto repair.
