Mixed-Use Site With Existing
For Sale
$600,000
26529 John R Road, Madison Heights, MI 48071
CC zoning supports high-density mixed-use development with retail and residential components.
Property Size1,973 SF
Price / SF$304.11
Days on Market20
Property Features for 26529 John R Road
General Information
Standard status
Active
Size
1,973 SF
Taxes and HOA fees
Annual Taxes
$6,056
Listing Agency:
Brookstone, Realtors LLC
(313) 445-1068
Listed By:
Julia L Myers
(313) 445-1068
Source:
Exprealty
Added: Jul 23
Changed: Aug 11
Last Checked: Aug 11 at 3:22AM
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 mixed-use property combines a 1,973-square-foot concrete block building with a vacant adjoining lot, creating a dual-parcel redevelopment site. The 0.455-acre assemblage offers 175 feet of frontage along John R Road. Under the 2024 CC City Center zoning designation, development frameworks include up to 4 stories of residential housing or a 3-over-1 configuration with ground-floor retail and multifamily units.
The property is positioned just south of 11 Mile Road and across from a school, with reported traffic averaging 21, 000+ vehicles per day. It is within 1 mile of the I-75 and I-696 interchange, 15 min from Downtown Detroit, and 3 miles from the regional train station. Additional stated distances include 6 miles to the airport, 8 miles to the commercial waterway, 18 min to the Detroit-Windsor Tunnel, 3 min to Royal Oak, 10 min to Troy, and 15 min to Birmingham.
The property is positioned just south of 11 Mile Road and across from a school, with reported traffic averaging 21, 000+ vehicles per day. It is within 1 mile of the I-75 and I-696 interchange, 15 min from Downtown Detroit, and 3 miles from the regional train station. Additional stated distances include 6 miles to the airport, 8 miles to the commercial waterway, 18 min to the Detroit-Windsor Tunnel, 3 min to Royal Oak, 10 min to Troy, and 15 min to Birmingham.
Key Highlights
- 0.455‑acre dual‑parcel assemblage with an existing building and adjacent vacant lot
- 1,973 sq. ft. concrete block building included in the offering
- 175 feet of main road frontage on John R Road
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
$24,201
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
4.03%
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%
$484,020
$484.0K
Cap Rate 7%
$345,729
$345.7K
Cap Rate 9%
$268,900
$268.9K
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
$45.9K $23.28/SF
− Vacancy
−$1.9K −$0.98/SF
EGI
$44.0K $22.30/SF
− OpEx
−$19.8K −$10.04/SF
NOI
$24.2K $12.27/SF
Area
Oakland County, MI
Vacancy
4.20%
Lease Rate
$23.28 /SF/Yr
Expense Ratio
45.00%
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%
$484,020
Cap Rate 7%
$345,729
Cap Rate 9%
$268,900
Alternative Uses
Best Use
Apartment 5plus
$345.7K
$302.5K – $403.4K
NOI $24,201 @ 7.0% cap · market cap 4.03%
Second Best
Retail
$303.3K
$265.4K – $353.8K
NOI $21,230 @ 7.0% cap · market cap 3.54%
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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
497
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 Multifamily 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?
Mixed-use property - CC zoning supports high-density mixed-use development with retail and residential components.
Where is this mixed-use property located?
The property is located at 26529 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 assemblage with an existing building and adjacent vacant lot; 1,973 sq. ft. concrete block building included in the offering; 175 feet of main road frontage on John R Road
