Livonia Two-Story Office
For Sale
Contact for pricing
Pending
20523 Merriman Rd, Livonia, MI 48152
Two-story office building in Livonia, Michigan, for sale.
Property Size4,471 SF
Days on Market288
Property Features for 20523 Merriman Rd
General Information
Standard status
Pending
Size
4,471 SF
Total Parking Spaces
17
Property subtype
Office
Zoning
M-1 Light Manufacturing
Building Details
Year Built
1971
Stories
2
Listing Agency:
Thomas Duke Company
(248) 476-8876
Listed By:
Frank Rakipi · License #MI 6502366400
Source:
Crexi
Added: Nov 8, 2025
Changed: Aug 8
Last Checked: Aug 3 at 5:11AM
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 Thomas Duke Company
Investment Insights
Based on property information with market context.
This two-story office building is strategically located in Livonia, Michigan. The property offers a total size of 4471 square feet and is suitable for commercial real estate purposes.
Key Highlights
- Strategically located in Livonia, MI.
- Two‑story office building.
- Built in 1971.
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
$15,391
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
4.40%
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%
$307,820
$307.8K
Cap Rate 7%
$219,871
$219.9K
Cap Rate 9%
$171,011
$171.0K
Market Conditions
NOI Build-Up for 4,471 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
$26.8K $6.00/SF
− Vacancy
−$6.3K −$1.41/SF
EGI
$20.5K $4.59/SF
− OpEx
−$5.1K −$1.15/SF
NOI
$15.4K $3.44/SF
Area
Wayne 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%
$307,820
Cap Rate 7%
$219,871
Cap Rate 9%
$171,011
Alternative Uses
Best Use
Office B
$219.9K
$192.4K – $256.5K
NOI $15,391 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$827.8K
$724.3K – $965.7K
NOI $57,944 @ 7.0% cap · market cap 16.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
379
Businesses Nearby
Explore this area
Business Placement
Demographics for 48152, MI
31,098
Population
12,922
Households
2.4
Avg Household Size
47
Median Age
41%
College-Educated
95%
High-School Grad
12.0 sq mi
ZIP Area
2,592
Density / Sq Mi
$89,019
Median Household Income
$50,614
Median Earnings
$1,293
Median Rent
$284,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Two-story office building in Livonia, Michigan, for sale.
Where is this office building located?
The property is located at 20523 Merriman Rd Livonia, MI.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Strategically located in Livonia, MI.; Two‑story office building.; Built in 1971.
