Freestanding Warehouse
For Sale
$725,000
2300 Michigan Avenue, Detroit, MI 48216
Freestanding warehouse building positioned directly across from Michigan Central Station on Michigan Avenue.
Property Size3,200 SF
Lot Size0.26 Acres
Price / SF$226.56
Days on Market72
Property Features for 2300 Michigan Avenue
General Information
Standard status
Active
Size
3,200 SF
Lot size
0.26 Acres
Property subtype
Commercial
Zoning
Commercial
Taxes and HOA fees
Annual Taxes
$16,555
Building Details
Building Size
3,200 SF
Year Built
1953
Listing Agency:
O'Connor Realty Detroit, LLC
(313) 963-9891
Listed By:
Vincent Mazzola · License #6501387170
(313) 963-9891
Source:
Phgrealty
Added: Jun 14
Changed: Aug 23
Last Checked: Aug 22 at 12:36PM
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 O'Connor Realty Detroit, LLC
Investment Insights
Based on property information with market context.
This for-sale warehouse building totals 3,200 square feet and is situated on an 0.258-acre site (11,238 square feet) at 2300 Michigan Avenue in Detroit. The property is designed as a standalone asset with visibility along Michigan Avenue and sits in a highly active development corridor.
The building is located directly across from Ford’s Michigan Central Station on Michigan Avenue. Surrounding area amenities and businesses include Level 3 Communications, Southwest Greenway, Honeybee Market, Airspace Link, Ford Motor Company’s Book Depository, New Lab Michigan Central, Detroit Bus Company, IMA, Slows BBQ, Metropolis Cycles, Mercury Burger Bar, Corktown Health Center, Detroit Public Safety Academy, and UPS Detroit International Import Hub.
The building is located directly across from Ford’s Michigan Central Station on Michigan Avenue. Surrounding area amenities and businesses include Level 3 Communications, Southwest Greenway, Honeybee Market, Airspace Link, Ford Motor Company’s Book Depository, New Lab Michigan Central, Detroit Bus Company, IMA, Slows BBQ, Metropolis Cycles, Mercury Burger Bar, Corktown Health Center, Detroit Public Safety Academy, and UPS Detroit International Import Hub.
Key Highlights
- Freestanding 3,200 SF warehouse building on a 0.258‑acre (11,238 SF) site
- Located directly across from Ford's Michigan Central Station on Michigan Avenue
- Situated in Corktown along Michigan Avenue, near numerous established and growing area employers and businesses
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
$22,803
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
3.15%
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%
$456,060
$456.1K
Cap Rate 7%
$325,757
$325.8K
Cap Rate 9%
$253,367
$253.4K
Market Conditions
NOI Build-Up for 3,200 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
$28.0K $8.76/SF
− Vacancy
−$1.2K −$0.38/SF
EGI
$26.8K $8.38/SF
− OpEx
−$4.0K −$1.26/SF
NOI
$22.8K $7.13/SF
Area
Detroit, MI
Vacancy
4.30%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
15.00%
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%
$456,060
Cap Rate 7%
$325,757
Cap Rate 9%
$253,367
Alternative Uses
Best Use
Warehouse
$325.8K
$285.0K – $380.1K
NOI $22,803 @ 7.0% cap · market cap 3.15%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$705.9K
$617.7K – $823.6K
NOI $49,415 @ 7.0% cap · market cap 6.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
620
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48216, MI
5,031
Population
3,398
Households
1.5
Avg Household Size
35
Median Age
37%
College-Educated
87%
High-School Grad
2.3 sq mi
ZIP Area
2,187
Density / Sq Mi
$42,278
Median Household Income
$42,189
Median Earnings
$860
Median Rent
$225,300
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?
Warehouse - Freestanding warehouse building positioned directly across from Michigan Central Station on Michigan Avenue.
Where is this warehouse located?
The property is located at 2300 Michigan Avenue Detroit, MI.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Freestanding 3,200 SF warehouse building on a 0.258‑acre (11,238 SF) site; Located directly across from Ford's Michigan Central Station on Michigan Avenue; Situated in Corktown along Michigan Avenue, near numerous established and growing area employers and businesses
