Commercial Land Redevelopment
For Sale
$600,000
26529-26545 John R Road, Madison Heights, MI 48071
Dual-parcel commercial land site along John R in Madison Heights with main-road frontage and an existing concrete block building.
Property Size1,973 SF
Price / SF$304.11
Days on Market27
Property Features for 26529-26545 John R Road
General Information
Standard status
Active
Size
1,973 SF
Property subtype
Commercial
Zoning
Commercial, Multi-Family, Residential
Lease Term
Cash, Conventional, Warranty Deed
Taxes and HOA fees
Annual Taxes
$6,056
Building Details
Building Size
1,973 SF
Year Built
1958
Stories
1
Listing Agency:
Brookstone, Realtors LLC
(248) 564-6071
Listed By:
Julia L Myers
(248) 564-6071
Source:
Sabudarealty
Added: Jul 29
Changed: Aug 23
Last Checked: Aug 24 at 1:59PM
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 Brookstone, Realtors LLC
Investment Insights
Based on property information with market context.
This dual-parcel commercial site totals 0.455 acres across 26529 and 26545 John R Road in Madison Heights. It includes an existing 1,973 SF concrete block structure and a vacant adjacent lot described as shovel-ready infill to support an accelerated build timeline. The offering is positioned for downtown redevelopment and designed for future high-density mixed-use development.
The site has 175 feet of main-road frontage along the John R corridor, just south of 11 Mile Road, and is described as across from a school. Traffic exposure is highlighted with average counts of 21,000+ vehicles per day. It sits within 1 mile of the I-75 and I-696 interchange and is described as 15 minutes to Downtown Detroit, 18 minutes to the Detroit-Windsor Tunnel, 3 miles from a regional train station, 6 miles from the airport, and 8 miles from the commercial waterway.
The property is referenced under 2024 “CC” (City Center) zoning, with development frameworks permitting up to 4 stories of dedicated residential housing, or a 3-over-1 mid-rise format featuring ground-floor retail beneath multi-family units. The existing concrete block structure was built in 1958.
The site has 175 feet of main-road frontage along the John R corridor, just south of 11 Mile Road, and is described as across from a school. Traffic exposure is highlighted with average counts of 21,000+ vehicles per day. It sits within 1 mile of the I-75 and I-696 interchange and is described as 15 minutes to Downtown Detroit, 18 minutes to the Detroit-Windsor Tunnel, 3 miles from a regional train station, 6 miles from the airport, and 8 miles from the commercial waterway.
The property is referenced under 2024 “CC” (City Center) zoning, with development frameworks permitting up to 4 stories of dedicated residential housing, or a 3-over-1 mid-rise format featuring ground-floor retail beneath multi-family units. The existing concrete block structure was built in 1958.
Key Highlights
- 0.455‑acre dual‑parcel commercial site at 26529 & 26545 John R Road
- 175 feet of main‑road frontage along the John R corridor
- 1,973 SF concrete block structure included with the land
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
$21,230
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
3.54%
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%
$424,600
$424.6K
Cap Rate 7%
$303,286
$303.3K
Cap Rate 9%
$235,889
$235.9K
Market Conditions
NOI Build-Up for 1,973 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
$33.1K $16.80/SF
− Vacancy
−$2.8K −$1.43/SF
EGI
$30.3K $15.37/SF
− OpEx
−$9.1K −$4.61/SF
NOI
$21.2K $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%
$424,600
Cap Rate 7%
$303,286
Cap Rate 9%
$235,889
Alternative Uses
Best Use
Retail
$303.3K
$265.4K – $353.8K
NOI $21,230 @ 7.0% cap · market cap 3.54%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$425.6K
$372.4K – $496.5K
NOI $29,789 @ 7.0% cap · market cap 4.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
510
Businesses Nearby
28k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 60%
Dining 35%
Beauty & Spa 5%
7-Eleven
Shops & Services
7,240 visits/mo
0.4 miles
BIGGBY COFFEE
Dining
6,423 visits/mo
0.2 miles
Mobil
Shops & Services
4,747 visits/mo
0.3 miles
BP
Shops & Services
4,587 visits/mo
0.3 miles
Jet's Pizza
Dining
2,247 visits/mo
0.2 miles
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Dual-parcel commercial land site along John R in Madison Heights with main-road frontage and an existing concrete block building.
Where is this commercial land located?
The property is located at 26529-26545 John R Road Madison Heights, MI.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: 0.455‑acre dual‑parcel commercial site at 26529 & 26545 John R Road; 175 feet of main‑road frontage along the John R corridor; 1,973 SF concrete block structure included with the land
