Two-Story Medical Office
For Sale
$1,500,000
23900 Orchard Lake Rd, Farmington, MI 48336
Two floors plus a walkout lower level with updated finishes, basement storage, and large surface parking.
Property Size16,218 SF
Price / SF$92.49
Days on Market469
Property Features for 23900 Orchard Lake Rd
General Information
Standard status
Active
Size
16,218 SF
Class
B
Property subtype
Office
Zoning
OS-2
Additional Details
Highway Access
Yes
Building Details
Building Size
16,218 SF
Year Built
1968
Buildings
1
Stories
2
Listing Agency:
NAI Farbman
Listed By:
Wendy Acho · License #6501411463
(248) 563-0739
Source:
Cpix.resimplifi
Added: May 26, 2025
Changed: Sep 4
Last Checked: Sep 5 at 3:35AM
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 NAI Farbman
Investment Insights
Based on property information with market context.
This two-story medical office building includes a walkout lower level and basement storage. The property totals 16,218 SF and features updated finishes throughout. There are two levels at 5,406 RSF per floor, providing straightforward space planning across the building.
Ingress and egress are described as easy off Orchard Lake Rd and Leelane Street, supporting convenient daily access. The site includes wall and monument signage and is positioned for high traffic exposure and visibility.
The building is located within the OS-2 Planned Office Service District and includes large surface parking on site for visitor and staff use.
Ingress and egress are described as easy off Orchard Lake Rd and Leelane Street, supporting convenient daily access. The site includes wall and monument signage and is positioned for high traffic exposure and visibility.
The building is located within the OS-2 Planned Office Service District and includes large surface parking on site for visitor and staff use.
Key Highlights
- 16,218 SF medical/office building with 2 floors plus a walkout lower level
- 5,406 RSF per floor (2 floors) with updated finishes
- Basement storage included
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
$55,830
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
3.72%
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%
$1,116,600
$1.1M
Cap Rate 7%
$797,571
$797.6K
Cap Rate 9%
$620,333
$620.3K
Market Conditions
NOI Build-Up for 16,218 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
$97.3K $6.00/SF
− Vacancy
−$22.9K −$1.41/SF
EGI
$74.4K $4.59/SF
− OpEx
−$18.6K −$1.15/SF
NOI
$55.8K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,116,600
Cap Rate 7%
$797,571
Cap Rate 9%
$620,333
Alternative Uses
Best Use
Healthcare Medical
$3.14M
$2.74M – $3.66M
NOI $219,468 @ 7.0% cap · market cap 14.63%
Second Best
Office B
$797.6K
$697.9K – $930.5K
NOI $55,830 @ 7.0% cap · market cap 3.72%
Theoretical Best
Specialty Retail
$3.50M
$3.06M – $4.08M
NOI $244,866 @ 7.0% cap · market cap 16.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
524
Businesses Nearby
Balanced
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two floors plus a walkout lower level with updated finishes, basement storage, and large surface parking.
Where is this medical office space located?
The property is located at 23900 Orchard Lake Rd Farmington, MI.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 16,218 SF medical/office building with 2 floors plus a walkout lower level; 5,406 RSF per floor (2 floors) with updated finishes; Basement storage included
