Harper Woods Commercial Investment
For Sale
$3,500,000
20570 Kelly Rd, Harper Woods, MI 48225
Leased property near redevelopment area, offering stable income.
Property Size27,871 SF
Lot Size2.77 Acres
Days on Market265
Property Features for 20570 Kelly Rd
General Information
Standard status
Active
Size
27,871 SF
Lot size
2.77 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$40,123
Building Details
Building Size
27,871 SF
Year Built
1997
Listing Agency:
Premier One Group Inc
(313) 819-0101
Listed By:
Khalil Hachem
(313) 819-0101
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 8
Last Checked: Aug 20 at 7:20AM
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 Premier One Group Inc
Investment Insights
Based on property information with market context.
This commercial property is located in a busy commercial area of Harper Woods. The building is currently leased to Harper Woods Public Schools under a triple-net contract, generating a monthly income of $21,715. The owner is responsible for liability insurance. The lease is in effect until March 29, 2033. Situated on a busy intersection, the property benefits from its proximity to a planned redevelopment of one million square feet of warehouses and stores at the former Eastland Mall site. It is also located near Home Depot and other medium to large stores along Kelly Road and Eight Mile Road. The property represents a stable investment opportunity with an existing long-term lease in place.
Key Highlights
- High monthly income of $21,715 from a triple‑net lease.
- Lease in place with Harper Woods Public Schools until March 29, 2033.
- Located in a busy commercial area of Harper Woods.
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
$264,083
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
7.55%
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%
$5,281,660
$5.3M
Cap Rate 7%
$3,772,614
$3.8M
Cap Rate 9%
$2,934,256
$2.9M
Market Conditions
NOI Build-Up for 27,871 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
$401.3K $14.40/SF
− Vacancy
−$24.1K −$0.86/SF
EGI
$377.3K $13.54/SF
− OpEx
−$113.2K −$4.06/SF
NOI
$264.1K $9.48/SF
Area
Wayne County, MI
Vacancy
6.00%
Lease Rate
$14.40 /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%
$5,281,660
Cap Rate 7%
$3,772,614
Cap Rate 9%
$2,934,256
Alternative Uses
Best Use
Retail
$3.77M
$3.30M – $4.40M
NOI $264,083 @ 7.0% cap · market cap 7.55%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$5.16M
$4.52M – $6.02M
NOI $361,208 @ 7.0% cap · market cap 10.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
224
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48225, MI
15,862
Population
6,271
Households
2.5
Avg Household Size
37
Median Age
23%
College-Educated
93%
High-School Grad
2.7 sq mi
ZIP Area
5,875
Density / Sq Mi
$59,248
Median Household Income
$40,558
Median Earnings
$1,304
Median Rent
$140,800
Median Home Value
Market
Vacancy Rate% for Retail 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?
Storefront property - Leased property near redevelopment area, offering stable income.
Where is this storefront property located?
The property is located at 20570 Kelly Rd Harper Woods, MI.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: High monthly income of $21,715 from a triple‑net lease.; Lease in place with Harper Woods Public Schools until March 29, 2033.; Located in a busy commercial area of Harper Woods.
