Automotive Repair and Storage
For Sale
$275,000
2455 W Davison St, Detroit, MI 48238
Automotive-oriented building with a two-year-old roof and warranty, suitable for storage and repair use.
Property Size3,770 SF
Price / SF$72.94
Days on Market517
Property Features for 2455 W Davison St
General Information
Standard status
Active
Size
3,770 SF
Property subtype
Industrial, Retail
Zoning
B4
Building Details
Building Size
3,770 SF
Year Built
1950
Buildings
1
Stories
1
Listing Agency:
Signature Associates - Southfield
Listed By:
Joe Stack
(248) 359-0615
Source:
Cpix.resimplifi
Added: Apr 11, 2025
Changed: Aug 31
Last Checked: Sep 8 at 3:36AM
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 Signature Associates - Southfield
Investment Insights
Based on property information with market context.
This property is an automotive-oriented building suited for auto storage and repair. Public remarks indicate the roof is approximately two years old and comes with a warranty.
It is listed for sale as a commercial asset in Detroit, MI.
The property size is reported as 3,770 square feet, providing space for automotive storage and repair operations.
It is listed for sale as a commercial asset in Detroit, MI.
The property size is reported as 3,770 square feet, providing space for automotive storage and repair operations.
Key Highlights
- Built in 1950
- 2‑year‑old roof with warranty
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
$18,336
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
6.67%
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%
$366,720
$366.7K
Cap Rate 7%
$261,943
$261.9K
Cap Rate 9%
$203,733
$203.7K
Market Conditions
NOI Build-Up for 3,770 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
$27.6K $7.32/SF
− Vacancy
−$1.4K −$0.37/SF
EGI
$26.2K $6.95/SF
− OpEx
−$7.9K −$2.08/SF
NOI
$18.3K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$366,720
Cap Rate 7%
$261,943
Cap Rate 9%
$203,733
Alternative Uses
Best Use
Retail
$663.4K
$580.4K – $773.9K
NOI $46,435 @ 7.0% cap · market cap 16.89%
Second Best
Industrial
$261.9K
$229.2K – $305.6K
NOI $18,336 @ 7.0% cap · market cap 6.67%
Theoretical Best
Office A
$831.7K
$727.7K – $970.3K
NOI $58,217 @ 7.0% cap · market cap 21.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
389
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48238, MI
25,747
Population
16,341
Households
1.6
Avg Household Size
37
Median Age
13%
College-Educated
84%
High-School Grad
5.4 sq mi
ZIP Area
4,768
Density / Sq Mi
$30,286
Median Household Income
$25,948
Median Earnings
$950
Median Rent
$58,700
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - Automotive-oriented building with a two-year-old roof and warranty, suitable for storage and repair use.
Where is this auto shop located?
The property is located at 2455 W Davison St Detroit, MI.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Built in 1950; 2‑year‑old roof with warranty
