Freestanding Flex
New
For Sale
$489,000
22748 Orchard Lake Road, Farmington, MI 48336
Free-span interior supports reconfiguration and deliveries through a grade-level overhead door.
Property Size2,000 SF
Price / SF$244.50
Days on Market3
Property Features for 22748 Orchard Lake Road
General Information
Standard status
Active
Size
2,000 SF
Property subtype
Retail
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Clear Span
Yes
Drive-In Doors
1
Amenities
one grade-level overhead door
new HVAC system
newer concrete drive/parking area
Building Details
Building Size
2,000 SF
Year Built
1958
Buildings
1
Tenancy
Single
Listing Agency:
KJ Commercial
(248) 881-4055
Listed By:
David Jappaya · License #6501416409
(248) 881-4055
Source:
Kjcre
Added: Aug 16
Changed: Aug 17
Last Checked: Aug 18 at 4:19AM
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 KJ Commercial
Investment Insights
Based on property information with market context.
This freestanding 2,000 SF flex building combines an adaptable interior with a grade-level overhead door. Free-span construction allows the interior walls to be reconfigured, supporting office, warehouse, and service-related layouts. A new HVAC system was installed in October 2025, and the concrete drive and parking area have been updated. The building was constructed in 1958.
The property fronts Orchard Lake Road in Farmington Hills, with access to Grand River Avenue, Downtown Farmington, I-696, and M-5. The current tenant is scheduled to vacate on November 30, 2026, creating a defined timeline for future occupancy. Please do not disturb the current tenant.
The property fronts Orchard Lake Road in Farmington Hills, with access to Grand River Avenue, Downtown Farmington, I-696, and M-5. The current tenant is scheduled to vacate on November 30, 2026, creating a defined timeline for future occupancy. Please do not disturb the current tenant.
Key Highlights
- 2,000 SF freestanding flex building
- Free‑span interior construction supports reconfiguration of interior walls
- One grade‑level overhead door for deliveries
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
$21,521
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
4.40%
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%
$430,420
$430.4K
Cap Rate 7%
$307,443
$307.4K
Cap Rate 9%
$239,122
$239.1K
Market Conditions
NOI Build-Up for 2,000 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
$33.6K $16.80/SF
− Vacancy
−$2.9K −$1.43/SF
EGI
$30.7K $15.37/SF
− OpEx
−$9.2K −$4.61/SF
NOI
$21.5K $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%
$430,420
Cap Rate 7%
$307,443
Cap Rate 9%
$239,122
Alternative Uses
Best Use
Retail
$307.4K
$269.0K – $358.7K
NOI $21,521 @ 7.0% cap · market cap 4.40%
Second Best
Flex RnD
$295.5K
$258.6K – $344.8K
NOI $20,686 @ 7.0% cap · market cap 4.23%
Theoretical Best
Specialty Retail
$431.4K
$377.5K – $503.3K
NOI $30,197 @ 7.0% cap · market cap 6.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Drive-in doors
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
482
Businesses Nearby
Under-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 Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Metro Detroit Moving Services — 32720 Grand River Ave, Farmington, MI 48336
Frequently Asked Questions
What type of property is this?
Flex space - Free-span interior supports reconfiguration and deliveries through a grade-level overhead door.
Where is this flex space located?
The property is located at 22748 Orchard Lake Road Farmington, MI.
What is the asking price?
The asking price for this property is $489,000.
What are key features of this property?
This property features: 2,000 SF freestanding flex building; Free‑span interior construction supports reconfiguration of interior walls; One grade‑level overhead door for deliveries
