Detroit Commercial Property on 8
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21221 Eight Mile W, Detroit, MI 48219
Commercial property on 8 Mile, Detroit, suitable for retail/storage.
Property Size20,600 SF
Price / SF$72.57
Days on Market382
Property Features for 21221 Eight Mile W
General Information
Standard status
Active
Size
20,600 SF
Property subtype
Retail
Zoning
B-4
Building Details
Buildings
1
Listing Agency:
On Q Commercial Real Estate
Listed By:
Joe Qonja · License #6505432099
Source:
Crexi
Added: Jul 28, 2025
Changed: Aug 8
Last Checked: Aug 12 at 7:11AM
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 On Q Commercial Real Estate
Investment Insights
Based on property information with market context.
This commercial property is strategically located on 8 Mile Road in Detroit, a heavily traveled route. The property offers excellent exposure and ample on-site parking. A drive-in overhead door provides convenient access. The flexible space is suitable for discount retailers, showrooms, or storage users. The property combines visibility, accessibility, and functionality in one of Detroit’s active commercial corridors. The property size is 20,600 square feet.
Key Highlights
- High‑traffic location on 8 Mile Road provides excellent exposure.
- Ample on‑site parking for customers and employees.
- Drive‑in overhead door offers convenient access for deliveries and operations.
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
$120,887
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
8.09%
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%
$2,417,740
$2.4M
Cap Rate 7%
$1,726,957
$1.7M
Cap Rate 9%
$1,343,189
$1.3M
Market Conditions
NOI Build-Up for 20,600 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
$180.5K $8.76/SF
− Vacancy
−$7.8K −$0.38/SF
EGI
$172.7K $8.38/SF
− OpEx
−$51.8K −$2.51/SF
NOI
$120.9K $5.87/SF
Area
ZIP 48219
Vacancy
4.30%
Lease Rate
$8.76 /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%
$2,417,740
Cap Rate 7%
$1,726,957
Cap Rate 9%
$1,343,189
Alternative Uses
Best Use
Retail
$3.62M
$3.17M – $4.23M
NOI $253,729 @ 7.0% cap · market cap 16.97%
Second Best
Warehouse
$2.10M
$1.83M – $2.45M
NOI $146,792 @ 7.0% cap · market cap 9.82%
Theoretical Best
Office A
$4.23M
$3.70M – $4.94M
NOI $296,181 @ 7.0% cap · market cap 19.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
423
Businesses Nearby
Explore this area
Business Placement
Demographics for 48219, MI
46,811
Population
20,815
Households
2.2
Avg Household Size
37
Median Age
13%
College-Educated
87%
High-School Grad
8.4 sq mi
ZIP Area
5,573
Density / Sq Mi
$43,882
Median Household Income
$31,187
Median Earnings
$1,037
Median Rent
$84,500
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?
Retail space - Commercial property on 8 Mile, Detroit, suitable for retail/storage.
Where is this retail space located?
The property is located at 21221 Eight Mile W Detroit, MI.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: High‑traffic location on 8 Mile Road provides excellent exposure.; Ample on‑site parking for customers and employees.; Drive‑in overhead door offers convenient access for deliveries and operations.
