Medical Office
For Sale
Contact for pricing
24001 ORCHARD LAKE RD, Farmington Hills, MI 48336
Condominium medical workspace positioned for professional healthcare use.
Property Size1,804 SF
Price / SF$237.80
Days on Market54
Property Features for 24001 ORCHARD LAKE RD
General Information
Standard status
Active
Size
1,804 SF
Property subtype
Office
Investment Type
Owner/User
Building Details
Year Built
1960
Year Renovated
2006
Buildings
1
Units
1
Listing Agency:
ACRES Group
Listed By:
Matthew McGinnis · License #MI 6502415978
Source:
Crexi
Added: Jul 14
Changed: Aug 31
Last Checked: Aug 31 at 5:02AM
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 ACRES Group
Investment Insights
Based on property information with market context.
This medical office condominium contains 1,804 square feet of professional space. The property was built in 1960 and is located at 24001 Orchard Lake Road in Farmington Hills, Michigan.
Key Highlights
- 1,804‑square‑foot medical office space
- Condominium ownership structure
- Built in 1960
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
$24,412
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
5.69%
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%
$488,240
$488.2K
Cap Rate 7%
$348,743
$348.7K
Cap Rate 9%
$271,244
$271.2K
Market Conditions
NOI Build-Up for 1,804 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
$45.5K $25.20/SF
− Vacancy
−$4.8K −$2.65/SF
EGI
$40.7K $22.55/SF
− OpEx
−$16.3K −$9.02/SF
NOI
$24.4K $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%
$488,240
Cap Rate 7%
$348,743
Cap Rate 9%
$271,244
Alternative Uses
Best Use
Healthcare Medical
$348.7K
$305.2K – $406.9K
NOI $24,412 @ 7.0% cap · market cap 5.69%
Second Best
Office B
$88.7K
$77.6K – $103.5K
NOI $6,210 @ 7.0% cap · market cap 1.45%
Theoretical Best
Specialty Retail
$389.1K
$340.5K – $454.0K
NOI $27,238 @ 7.0% cap · market cap 6.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
647
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
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Condominium medical workspace positioned for professional healthcare use.
Where is this medical office space located?
The property is located at 24001 ORCHARD LAKE RD Farmington Hills, MI.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: 1,804‑square‑foot medical office space; Condominium ownership structure; Built in 1960
