Retail Storefront with Adjacent
New
For Sale
$389,900
20524 W Warren Ave, Detroit, MI 48228
Sale includes an adjoining parcel that may support parking, outdoor storage, expansion, or redevelopment.
Property Size2,367 SF
Price / SF$164.72
Days on Market3
Property Features for 20524 W Warren Ave
General Information
Standard status
Active
Size
2,367 SF
Additional Details
Highway Access
Yes
Building Details
Year Built
1959
Listing Agency:
Empire Realty Group
Listed By:
Moussa Sobh · License #6502127733
(313) 846-0960
Source:
Katie-k
Added: Sep 4
Last Checked: Sep 5 at 10:54AM
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 Empire Realty Group
Investment Insights
Based on property information with market context.
This retail storefront at 20524 W Warren Ave in Detroit includes the adjoining parcel identified as Parcel ID W22I000515S. The additional land provides options for parking, outdoor storage, future expansion, or redevelopment, subject to applicable approvals.
Built in 1959, the property is positioned in Detroit’s Warrendale neighborhood along W Warren Ave. Its location provides access toward Dearborn and Dearborn Heights, with convenient connectivity to major freeways. The property is suited to retail, office, medical, automotive, or service-oriented commercial use, supporting both owner-occupant and investor strategies.
Built in 1959, the property is positioned in Detroit’s Warrendale neighborhood along W Warren Ave. Its location provides access toward Dearborn and Dearborn Heights, with convenient connectivity to major freeways. The property is suited to retail, office, medical, automotive, or service-oriented commercial use, supporting both owner-occupant and investor strategies.
Key Highlights
- Adjoining parcel included in the sale: Parcel ID W22I000515S
- Built in 1959
- Located at 20524 W Warren Ave, Detroit, MI 48228
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
$29,154
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
7.48%
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%
$583,080
$583.1K
Cap Rate 7%
$416,486
$416.5K
Cap Rate 9%
$323,933
$323.9K
Market Conditions
NOI Build-Up for 2,367 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
$44.0K $18.60/SF
− Vacancy
−$2.4K −$1.00/SF
EGI
$41.6K $17.60/SF
− OpEx
−$12.5K −$5.28/SF
NOI
$29.2K $12.32/SF
Area
ZIP 48228
Vacancy
5.40%
Lease Rate
$18.60 /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%
$583,080
Cap Rate 7%
$416,486
Cap Rate 9%
$323,933
Alternative Uses
Best Use
Retail
$416.5K
$364.4K – $485.9K
NOI $29,154 @ 7.0% cap · market cap 7.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$486.2K
$425.4K – $567.2K
NOI $34,032 @ 7.0% cap · market cap 8.73%
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
304
Businesses Nearby
20k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Family Dollar
Shops & Services
7,187 visits/mo
0.5 miles
Valero Energy
Shops & Services
7,140 visits/mo
0.2 miles
AutoZone
Shops & Services
3,680 visits/mo
0.5 miles
Comerica Bank
Shops & Services
2,390 visits/mo
0.2 miles
Demographics for 48228, MI
53,893
Population
22,620
Households
2.4
Avg Household Size
31
Median Age
11%
College-Educated
78%
High-School Grad
8.9 sq mi
ZIP Area
6,055
Density / Sq Mi
$31,485
Median Household Income
$27,533
Median Earnings
$1,086
Median Rent
$55,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Sale includes an adjoining parcel that may support parking, outdoor storage, expansion, or redevelopment.
Where is this storefront property located?
The property is located at 20524 W Warren Ave Detroit, MI.
What is the asking price?
The asking price for this property is $389,900.
What are key features of this property?
This property features: Adjoining parcel included in the sale: Parcel ID W22I000515S; Built in 1959; Located at 20524 W Warren Ave, Detroit, MI 48228
