Leased Office Investment
For Sale
$499,900
24821 5 Mile Road, Redford, MI 48239
Two separate four-unit office buildings are fully leased, with recent roof replacement on both structures.
Property Size3,729 SF
Days on Market65
Property Features for 24821 5 Mile Road
General Information
Standard status
Active
Size
3,729 SF
Property subtype
Commercial
Zoning
Commercial
Occupancy
90%
Additional Details
Business Included
Yes
Office Units
8
Taxes and HOA fees
Annual Taxes
$8,282
Building Details
Building Size
3,729 SF
Year Built
1958
Tenancy
Multi
Listing Agency:
RE/MAX Team 2000
(313) 715-1000
Listed By:
Frank Alsaghir · License #6501373949
Source:
Eliterealtymi
Added: Jun 20
Changed: Aug 23
Last Checked: Aug 22 at 6:50AM
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 RE/MAX Team 2000
Investment Insights
Based on property information with market context.
This well-maintained 8-unit commercial property includes two separate buildings, each with four fully leased office units. The asset is positioned as a turnkey investment with established tenants and 90% occupancy. Unit configuration is designed to support a variety of commercial uses, and the split-building setup provides operational flexibility and ease of management.
The property is located at 24821 and 24865 5 Mile Rd in Redford Charter Township, Wayne, MI 48239. A new roof was added to both buildings in June 2026.
Each building functions independently as a four-unit structure, creating a straightforward ownership and management footprint for a multi-tenant office investment.
The property is located at 24821 and 24865 5 Mile Rd in Redford Charter Township, Wayne, MI 48239. A new roof was added to both buildings in June 2026.
Each building functions independently as a four-unit structure, creating a straightforward ownership and management footprint for a multi-tenant office investment.
Key Highlights
- 8‑unit commercial property made up of two separate 4‑unit buildings (24821 and 24865 5 Mile Rd.)
- Fully leased/90% occupancy with established tenants in place
- Two standalone 4‑unit buildings provide operational flexibility and easier management
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
$37,778
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
7.56%
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%
$755,560
$755.6K
Cap Rate 7%
$539,686
$539.7K
Cap Rate 9%
$419,756
$419.8K
Market Conditions
NOI Build-Up for 3,729 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
$65.3K $17.52/SF
− Vacancy
−$15.0K −$4.01/SF
EGI
$50.4K $13.51/SF
− OpEx
−$12.6K −$3.38/SF
NOI
$37.8K $10.13/SF
Area
Detroit, MI
Vacancy
22.90%
Lease Rate
$17.52 /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%
$755,560
Cap Rate 7%
$539,686
Cap Rate 9%
$419,756
Alternative Uses
Best Use
Office B
$539.7K
$472.2K – $629.6K
NOI $37,778 @ 7.0% cap · market cap 7.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$822.6K
$719.8K – $959.7K
NOI $57,584 @ 7.0% cap · market cap 11.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Office units
90%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
525
Businesses Nearby
Explore this area
Business Placement
Demographics for 48239, MI
36,814
Population
14,869
Households
2.5
Avg Household Size
40
Median Age
23%
College-Educated
93%
High-School Grad
9.5 sq mi
ZIP Area
3,875
Density / Sq Mi
$69,373
Median Household Income
$41,113
Median Earnings
$1,355
Median Rent
$145,900
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.
Frequently Asked Questions
What type of property is this?
Office units - Two separate four-unit office buildings are fully leased, with recent roof replacement on both structures.
Where is this office units located?
The property is located at 24821 5 Mile Road Redford, MI.
What is the asking price?
The asking price for this property is $499,900.
What are key features of this property?
This property features: 8‑unit commercial property made up of two separate 4‑unit buildings (24821 and 24865 5 Mile Rd.); Fully leased/90% occupancy with established tenants in place; Two standalone 4‑unit buildings provide operational flexibility and easier management
