Auto Body Shop with Living
For Sale
Contact for pricing
20785 Orchard Lake Road, Farmington, MI 48336
Turnkey body shop with a new spray booth, upgraded utilities, and living quarters above for flexible owner or rental use.
Property Size4,155 SF
Price / SF$336.94
Days on Market59
Property Features for 20785 Orchard Lake Road
General Information
Standard status
Active
Size
4,155 SF
Property subtype
Business for Sale, Retail
Additional Details
Business Included
Yes
Building Details
Year Built
1979
Listing Agency:
Keller Williams Professionals
(734) 459-4700
Listed By:
Jeff Glover · License #MI 6501317808
Source:
Crexi
Added: Jun 12
Changed: Aug 7
Last Checked: Aug 8 at 12:41PM
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 Keller Williams Professionals
Investment Insights
Based on property information with market context.
This well-maintained commercial property is currently operating as an auto body shop and includes major shop improvements and updated building systems. Recent work includes a brand-new spray booth installed in 2025, complete electrical rewiring throughout the building, and new gas lines and meters. The property also features a newer air conditioning system, and a new roof is scheduled for installation within the next three weeks.
In addition to the automotive workspace, the building offers living quarters above the shop. This upper-level space can support owner occupancy, employee housing, or potentially additional rental income, depending on how the next owner intends to use the property.
For an operator seeking a ready-to-run facility, the combination of current body shop functionality and substantial mechanical and structural upgrades can reduce near-term capex planning. For investors or owner-users, the on-site residential component adds flexibility to align with staffing needs or diversify income sources, while the shop’s recent equipment and system updates support continued business operation.
In addition to the automotive workspace, the building offers living quarters above the shop. This upper-level space can support owner occupancy, employee housing, or potentially additional rental income, depending on how the next owner intends to use the property.
For an operator seeking a ready-to-run facility, the combination of current body shop functionality and substantial mechanical and structural upgrades can reduce near-term capex planning. For investors or owner-users, the on-site residential component adds flexibility to align with staffing needs or diversify income sources, while the shop’s recent equipment and system updates support continued business operation.
Key Highlights
- Body shop with living quarters above the shop for owner occupancy, employee housing, or additional rental income
- Brand‑new spray booth installed in 2025
- Electrical rewiring completed throughout the entire building
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
$44,709
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
3.19%
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%
$894,180
$894.2K
Cap Rate 7%
$638,700
$638.7K
Cap Rate 9%
$496,767
$496.8K
Market Conditions
NOI Build-Up for 4,155 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
$69.8K $16.80/SF
− Vacancy
−$5.9K −$1.43/SF
EGI
$63.9K $15.37/SF
− OpEx
−$19.2K −$4.61/SF
NOI
$44.7K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$894,180
Cap Rate 7%
$638,700
Cap Rate 9%
$496,767
Alternative Uses
Best Use
Retail
$638.7K
$558.9K – $745.2K
NOI $44,709 @ 7.0% cap · market cap 3.19%
Second Best
Industrial
$294.1K
$257.3K – $343.1K
NOI $20,587 @ 7.0% cap · market cap 1.47%
Theoretical Best
Specialty Retail
$896.2K
$784.2K – $1.05M
NOI $62,734 @ 7.0% cap · market cap 4.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
482
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48336, MI
26,802
Population
12,296
Households
2.2
Avg Household Size
42
Median Age
44%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,882
Density / Sq Mi
$85,325
Median Household Income
$54,077
Median Earnings
$1,141
Median Rent
$247,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - Turnkey body shop with a new spray booth, upgraded utilities, and living quarters above for flexible owner or rental use.
Where is this auto shop located?
The property is located at 20785 Orchard Lake Road Farmington, MI.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Body shop with living quarters above the shop for owner occupancy, employee housing, or additional rental income; Brand‑new spray booth installed in 2025; Electrical rewiring completed throughout the entire building
