Detroit Industrial/Manufacturing Building For
For Sale
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20530 HOOVER ST, Detroit, MI 48205
40,300 SF Detroit building suitable for industrial or manufacturing use.
Property Size40,300 SF
Price / SF$78.16
Days on Market816
Property Features for 20530 HOOVER ST
General Information
Standard status
Active
Size
40,300 SF
Class
C
Property subtype
Industrial
Zoning
M3
Building Details
Year Built
1955
Listing Agency:
Odessa Properties LLC
(586) 337-6800
Listed By:
Actavia Kattula · License #MI6502431784
Source:
Crexi
Added: May 20, 2024
Changed: Aug 8
Last Checked: May 13 at 8:25PM
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 Odessa Properties LLC
Investment Insights
Based on property information with market context.
Located on 8 Mile and Groesbeck Highway, this 40,300 SF building is suitable for industrial and manufacturing purposes. The property features mechanical, plumbing, and electrical upgrades, including a new roof installed in 2023 with a 20-year warranty. It is equipped with power panels providing 480 Volts, 3,000 amps, and 2,100 KVA, as well as a fire suppression system and updated plumbing. The building includes new office space with epoxy floors, a kitchenette, bathrooms, and direct access to the warehouse.
Key Highlights
- Prime location at 8 Mile and Groesbeck Highway.
- 40,300 SF pristine building suitable for industrial/manufacturing use.
- Brand new roof (2023) with a 20‑year warranty.
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
$196,007
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
6.22%
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%
$3,920,140
$3.9M
Cap Rate 7%
$2,800,100
$2.8M
Cap Rate 9%
$2,177,856
$2.2M
Market Conditions
NOI Build-Up for 40,300 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
$295.0K $7.32/SF
− Vacancy
−$15.0K −$0.37/SF
EGI
$280.0K $6.95/SF
− OpEx
−$84.0K −$2.08/SF
NOI
$196.0K $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%
$3,920,140
Cap Rate 7%
$2,800,100
Cap Rate 9%
$2,177,856
Alternative Uses
Best Use
Industrial
$2.80M
$2.45M – $3.27M
NOI $196,007 @ 7.0% cap · market cap 6.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.89M
$7.78M – $10.37M
NOI $622,324 @ 7.0% cap · market cap 19.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
260
Businesses Nearby
Explore this area
Business Placement
Demographics for 48205, MI
34,056
Population
17,102
Households
2
Avg Household Size
32
Median Age
9%
College-Educated
85%
High-School Grad
6.4 sq mi
ZIP Area
5,321
Density / Sq Mi
$40,612
Median Household Income
$30,833
Median Earnings
$1,149
Median Rent
$55,700
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - 40,300 SF Detroit building suitable for industrial or manufacturing use.
Where is this manufacturing property located?
The property is located at 20530 HOOVER ST Detroit, MI.
What is the asking price?
The asking price for this property is $3,150,000.
What are key features of this property?
This property features: Prime location at 8 Mile and Groesbeck Highway.; 40,300 SF pristine building suitable for industrial/manufacturing use.; Brand new roof (2023) with a 20‑year warranty.
