Freestanding Medical Office
New
For Sale
$649,000
23280 Farmington Rd, Farmington, MI 48336
CBD-zoned medical office with treatment rooms, private offices, parking, and an accessible entrance.
Property Size3,373 SF
Days on Market3
Property Features for 23280 Farmington Rd
General Information
Standard status
Active
Size
3,373 SF
Total Parking Spaces
14
Property subtype
Office
Zoning
CBD
Additional Details
Gross Income
$62,100
Building Details
Building Size
3,373 SF
Year Built
1960
Buildings
1
Tenancy
Single
Listing Agency:
(248) 470-1878
Listed By:
Steve Eisenshtadt
(248) 470-1878
Source:
Friedmanrealestate
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 2:34PM
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 Steve Eisenshtadt
Investment Insights
Based on property information with market context.
Freestanding medical office property built in 1960 and configured for chiropractic and wellness services. The interior includes a reception area, treatment rooms, and private offices, supported by on-site parking, an accessible entrance, and building signage. The property is located at 23280 Farmington Rd in Farmington, Michigan, near Downtown Farmington with access to Grand River Avenue.
An established chiropractic tenant occupies the building under a modified-net lease extending through June 30, 2031. The property carries CBD zoning and offers a dedicated medical-office layout with existing operational improvements.
An established chiropractic tenant occupies the building under a modified-net lease extending through June 30, 2031. The property carries CBD zoning and offers a dedicated medical-office layout with existing operational improvements.
Key Highlights
- Freestanding medical office building constructed in 1960
- Chiropractic tenant lease extends through June 30, 2031
- CBD zoning supports the medical office asset classification
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
$45,645
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
7.03%
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%
$912,900
$912.9K
Cap Rate 7%
$652,071
$652.1K
Cap Rate 9%
$507,167
$507.2K
Market Conditions
NOI Build-Up for 3,373 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
$85.0K $25.20/SF
− Vacancy
−$8.9K −$2.65/SF
EGI
$76.1K $22.55/SF
− OpEx
−$30.4K −$9.02/SF
NOI
$45.6K $13.53/SF
Area
Oakland County, MI
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$912,900
Cap Rate 7%
$652,071
Cap Rate 9%
$507,167
Alternative Uses
Best Use
Healthcare Medical
$652.1K
$570.6K – $760.8K
NOI $45,645 @ 7.0% cap · market cap 7.03%
Second Best
Office B
$165.9K
$145.2K – $193.5K
NOI $11,612 @ 7.0% cap · market cap 1.79%
Theoretical Best
Specialty Retail
$727.5K
$636.6K – $848.8K
NOI $50,927 @ 7.0% cap · market cap 7.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
878
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 Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- BluePearl Pet Neurology — 33300 W 9 Mile Rd, Farmington, MI 48336
Frequently Asked Questions
What type of property is this?
Medical Office Space - CBD-zoned medical office with treatment rooms, private offices, parking, and an accessible entrance.
Where is this medical office space located?
The property is located at 23280 Farmington Rd Farmington, MI.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Freestanding medical office building constructed in 1960; Chiropractic tenant lease extends through June 30, 2031; CBD zoning supports the medical office asset classification
