Medical and Office
For Sale
Contact for pricing
23895 Novi Rd, Novi, MI 48375
Two-building office offering with frontage and signage on Novi Road near a signalized intersection.
Property Size14,127 SF
Price / SF$261.91
Days on Market62
Property Features for 23895 Novi Rd
General Information
Standard status
Active
Size
14,127 SF
Property subtype
OFFICE
Zoning
OS-1
Additional Details
Road Access
Yes
Listing Agency:
Colliers
(249) 540-1000
Listed By:
Simon Jonna
(249) 540-1000
Source:
Moodyscre
Added: Jun 8
Changed: Aug 8
Last Checked: Jun 11 at 2:29AM
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 Colliers
Investment Insights
Based on property information with market context.
This two-building offering includes suites available for sale or lease, either together or separately. Available space ranges from 1,100 to 2,200 +/- square feet, providing flexible configurations for professional uses. The property is positioned for office and medical tenant requirements, with zoning designated OS-1 for medical, office, or commercial/service use.
The buildings are located in Novi on Novi Road, with frontage and signage available directly on Novi Road. The property sits just steps from the Novi Road and 10 Mile Road intersection, a signalized location with strong daily traffic counts. The surrounding area is described as an established commercial hub, with nearby national retailers including Twelve Oaks Mall, Busch’s Market, Ace Hardware, Walgreens, and CVS.
For tenants and buyers seeking an OS-1 location for medical, office, or commercial/service operations, these suites offer an adaptable footprint within a retail-heavy trade area. The visibility afforded by Novi Road frontage and signage, combined with immediate access to a major intersection, supports everyday business needs and customer-facing visibility for qualifying uses.
The buildings are located in Novi on Novi Road, with frontage and signage available directly on Novi Road. The property sits just steps from the Novi Road and 10 Mile Road intersection, a signalized location with strong daily traffic counts. The surrounding area is described as an established commercial hub, with nearby national retailers including Twelve Oaks Mall, Busch’s Market, Ace Hardware, Walgreens, and CVS.
For tenants and buyers seeking an OS-1 location for medical, office, or commercial/service operations, these suites offer an adaptable footprint within a retail-heavy trade area. The visibility afforded by Novi Road frontage and signage, combined with immediate access to a major intersection, supports everyday business needs and customer-facing visibility for qualifying uses.
Key Highlights
- Two‑building office offering at 23895 & 23875 Novi Rd
- Frontage and signage available directly on Novi Rd near a signalized Novi Rd & 10 Mile Rd intersection
- 1,100 to 2,200 +/- SF suites available for lease
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
$191,172
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
5.17%
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%
$3,823,440
$3.8M
Cap Rate 7%
$2,731,029
$2.7M
Cap Rate 9%
$2,124,133
$2.1M
Market Conditions
NOI Build-Up for 14,127 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
$356.0K $25.20/SF
− Vacancy
−$37.4K −$2.65/SF
EGI
$318.6K $22.55/SF
− OpEx
−$127.4K −$9.02/SF
NOI
$191.2K $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%
$3,823,440
Cap Rate 7%
$2,731,029
Cap Rate 9%
$2,124,133
Alternative Uses
Best Use
Healthcare Medical
$2.73M
$2.39M – $3.19M
NOI $191,172 @ 7.0% cap · market cap 5.17%
Second Best
Office B
$694.7K
$607.9K – $810.5K
NOI $48,632 @ 7.0% cap · market cap 1.31%
Theoretical Best
Specialty Retail
$3.05M
$2.67M – $3.55M
NOI $213,295 @ 7.0% cap · market cap 5.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
494
Businesses Nearby
Explore this area
Business Placement
Demographics for 48375, MI
23,237
Population
10,223
Households
2.3
Avg Household Size
40
Median Age
63%
College-Educated
98%
High-School Grad
8.4 sq mi
ZIP Area
2,766
Density / Sq Mi
$112,978
Median Household Income
$70,326
Median Earnings
$1,880
Median Rent
$348,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Two-building office offering with frontage and signage on Novi Road near a signalized intersection.
Where is this office units located?
The property is located at 23895 Novi Rd Novi, MI.
What is the asking price?
The asking price for this property is $3,700,000.
What are key features of this property?
This property features: Two‑building office offering at 23895 & 23875 Novi Rd; Frontage and signage available directly on Novi Rd near a signalized Novi Rd & 10 Mile Rd intersection; 1,100 to 2,200 +/- SF suites available for lease
