Manufacturing Facility with Overhead
For Sale
$3,795,000
25880 Commerce Dr, Madison Heights, MI 48071
M-1 industrial facility with substantial power, dedicated office space, and direct proximity to I-696.
Property Size40,678 SF
Price / SF$93.29
Days on Market53
Property Features for 25880 Commerce Dr
General Information
Standard status
Active
Size
40,678 SF
Property subtype
Industrial
Zoning
M-1
Building Details
Building Size
40,678 SF
Listing Agency:
L. Mason Capitani, Inc.
(586) 615-9434
Listed By:
Joseph DePonio
(586) 615-9434
Source:
Cpix.resimplifi
Added: Jul 9
Changed: Aug 29
Last Checked: Aug 29 at 2:41PM
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 L. Mason Capitani, Inc.
Investment Insights
Based on property information with market context.
This manufacturing facility contains 40,678 square feet, including 8,542 square feet of office area. The property is equipped with eight overhead cranes rated for loads up to 10 tons, along with 3,000 amps of 480-volt electrical service. M-1 zoning supports its industrial classification.
The facility is adjacent to I-696, providing immediate access to the interstate system. Existing tenant leases expire in August 2027, and early vacancy is being considered, creating flexibility around occupancy timing.
The facility is adjacent to I-696, providing immediate access to the interstate system. Existing tenant leases expire in August 2027, and early vacancy is being considered, creating flexibility around occupancy timing.
Key Highlights
- 40,678‑square‑foot manufacturing facility
- 8,542 square feet of office space
- Eight overhead cranes with capacities up to 10 tons
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
$201,545
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
5.31%
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%
$4,030,900
$4.0M
Cap Rate 7%
$2,879,214
$2.9M
Cap Rate 9%
$2,239,389
$2.2M
Market Conditions
NOI Build-Up for 40,678 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
$299.0K $7.35/SF
− Vacancy
−$11.1K −$0.27/SF
EGI
$287.9K $7.08/SF
− OpEx
−$86.4K −$2.12/SF
NOI
$201.5K $4.95/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /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%
$4,030,900
Cap Rate 7%
$2,879,214
Cap Rate 9%
$2,239,389
Alternative Uses
Best Use
Industrial
$2.88M
$2.52M – $3.36M
NOI $201,545 @ 7.0% cap · market cap 5.31%
Second Best
Office B
$2.00M
$1.75M – $2.33M
NOI $140,034 @ 7.0% cap · market cap 3.69%
Theoretical Best
Specialty Retail
$8.77M
$7.68M – $10.24M
NOI $614,173 @ 7.0% cap · market cap 16.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
572
Businesses Nearby
Explore this area
Business Placement
Demographics for 48071, MI
28,468
Population
14,690
Households
1.9
Avg Household Size
39
Median Age
32%
College-Educated
89%
High-School Grad
7.1 sq mi
ZIP Area
4,010
Density / Sq Mi
$66,726
Median Household Income
$49,151
Median Earnings
$1,138
Median Rent
$190,300
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?
Manufacturing property - M-1 industrial facility with substantial power, dedicated office space, and direct proximity to I-696.
Where is this manufacturing property located?
The property is located at 25880 Commerce Dr Madison Heights, MI.
What is the asking price?
The asking price for this property is $3,795,000.
What are key features of this property?
This property features: 40,678‑square‑foot manufacturing facility; 8,542 square feet of office space; Eight overhead cranes with capacities up to 10 tons
