Drive-Through Flex
For Sale
Contact for pricing
24431 TELEGRAPH RD, Southfield, MI 48033
Two well-maintained flex buildings with recent exterior and mechanical upgrades, positioned for office, showroom, and drive-through use.
Property Size7,200 SF
Price / SF$136.81
Days on Market62
Property Features for 24431 TELEGRAPH RD
General Information
Standard status
Active
Size
7,200 SF
Property subtype
Industrial
Zoning
I-1
Investment Type
Owner/User
Additional Details
Highway Access
Yes
Building Details
Year Built
1965
Year Renovated
2022
Buildings
2
Stories
1
Units
1
Listing Agency:
RH Commercial Realty
(248) 207-5847
Listed By:
Nate Hughes · License #6501433129
Source:
Crexi
Added: Jun 9
Changed: Aug 8
Last Checked: Aug 6 at 1:56PM
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 RH Commercial Realty
Investment Insights
Based on property information with market context.
This offering includes two separate buildings, each deemed 3,600 SF, for a combined total of 7,200 SF. The property has been meticulously maintained and features several recent updates, including new radiant tube heaters, new exterior paint, and gutter drainage systems. The layout and improvements support a range of commercial uses, including options that benefit from drive-through capabilities, as well as professional office or showroom operations and potential utilization of rear yard space.
The buildings are located on the west side of Telegraph Road and provide easy access to I-696. The property is also described as being only minutes from M-5, M-10, M-102, and M-39, supporting convenient regional connectivity for employees, customers, and vendors.
From a tenant and operator standpoint, this configuration can work for businesses that need flex space with straightforward access and the ability to accommodate both customer-facing and work-oriented functions. The stated I-1 zoning can support buyers evaluating multi-use options, including combinations of office/showroom uses alongside areas that benefit from drive-through access and rear-yard usage.
The buildings are located on the west side of Telegraph Road and provide easy access to I-696. The property is also described as being only minutes from M-5, M-10, M-102, and M-39, supporting convenient regional connectivity for employees, customers, and vendors.
From a tenant and operator standpoint, this configuration can work for businesses that need flex space with straightforward access and the ability to accommodate both customer-facing and work-oriented functions. The stated I-1 zoning can support buyers evaluating multi-use options, including combinations of office/showroom uses alongside areas that benefit from drive-through access and rear-yard usage.
Key Highlights
- Two buildings totaling 7,200 SF (each 3,600 SF) built in 1965
- I‑1 zoning—flex space suited for drive‑through, professional office/showroom, and/or rear yard use
- Recent updates include new radiant tube heaters
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
$77,475
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
7.87%
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%
$1,549,500
$1.5M
Cap Rate 7%
$1,106,786
$1.1M
Cap Rate 9%
$860,833
$860.8K
Market Conditions
NOI Build-Up for 7,200 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
$121.0K $16.80/SF
− Vacancy
−$10.3K −$1.43/SF
EGI
$110.7K $15.37/SF
− OpEx
−$33.2K −$4.61/SF
NOI
$77.5K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,549,500
Cap Rate 7%
$1,106,786
Cap Rate 9%
$860,833
Alternative Uses
Best Use
Retail
$1.11M
$968.4K – $1.29M
NOI $77,475 @ 7.0% cap · market cap 7.87%
Second Best
Flex RnD
$1.06M
$930.9K – $1.24M
NOI $74,468 @ 7.0% cap · market cap 7.56%
Theoretical Best
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,708 @ 7.0% cap · market cap 11.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
314
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48033, MI
17,207
Population
9,198
Households
1.9
Avg Household Size
47
Median Age
33%
College-Educated
93%
High-School Grad
9.1 sq mi
ZIP Area
1,891
Density / Sq Mi
$55,599
Median Household Income
$45,192
Median Earnings
$1,242
Median Rent
$195,100
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?
Flex space - Two well-maintained flex buildings with recent exterior and mechanical upgrades, positioned for office, showroom, and drive-through use.
Where is this flex space located?
The property is located at 24431 TELEGRAPH RD Southfield, MI.
What is the asking price?
The asking price for this property is $985,000.
What are key features of this property?
This property features: Two buildings totaling 7,200 SF (each 3,600 SF) built in 1965; I‑1 zoning—flex space suited for drive‑through, professional office/showroom, and/or rear yard use; Recent updates include new radiant tube heaters
