Retail Lease and Vacant Office
For Sale
Contact for pricing
27364 Woodward Ave, Royal Oak, MI 48067
Site includes a small leased rental and a vacant office building with dedicated parking areas for flexible occupancy.
Property Size5,279 SF
Price / SF$378.86
Days on Market118
Property Features for 27364 Woodward Ave
General Information
Standard status
Active
Size
5,279 SF
Total Parking Spaces
45
Property subtype
Office, Retail
Zoning
General Commercial
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$165,754
Building Details
Year Built
1958
Year Renovated
2018
Buildings
2
Units
45
Tenancy
Single
Listing Agency:
Marcus & Millichap - Detroit
Listed By:
Richard O'Connor · License #MI 6501206542
Source:
Crexi
Added: May 11
Changed: Aug 22
Last Checked: Sep 4 at 10:43AM
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 Marcus & Millichap - Detroit
Investment Insights
Based on property information with market context.
This mixed-use site features a 679-square-foot building leased to Avis/Budget Rent-A-Car and a vacant 4,600-square-foot office building. The property sits on 0.47 acres and includes a 30-car parking area supporting the leased building, along with a dedicated 15-car parking lot for the vacant office.
Located on Woodward Avenue, the site is described as having over 90,000 cars per day and is noted to be less than 1.5 miles from Downtown Royal Oak and Oakland Community College, with approximately 14,000-plus students. The public remarks also cite over 350,000 people within five miles.
For a replacement tenant or owner-user, the vacant office building provides an opportunity to reposition the space, supported by on-site parking and high-visibility frontage along Woodward Avenue.
Located on Woodward Avenue, the site is described as having over 90,000 cars per day and is noted to be less than 1.5 miles from Downtown Royal Oak and Oakland Community College, with approximately 14,000-plus students. The public remarks also cite over 350,000 people within five miles.
For a replacement tenant or owner-user, the vacant office building provides an opportunity to reposition the space, supported by on-site parking and high-visibility frontage along Woodward Avenue.
Key Highlights
- 0.47‑acre site with a 679‑SF building leased to Avis/Budget Rent‑A‑Car
- 30‑car parking area included with the leased 679‑SF building
- Vacant 4,600‑SF office building with dedicated 15‑car parking lot
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
$56,804
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
2.84%
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%
$1,136,080
$1.1M
Cap Rate 7%
$811,486
$811.5K
Cap Rate 9%
$631,156
$631.2K
Market Conditions
NOI Build-Up for 5,279 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
$88.7K $16.80/SF
− Vacancy
−$7.5K −$1.43/SF
EGI
$81.1K $15.37/SF
− OpEx
−$24.3K −$4.61/SF
NOI
$56.8K $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%
$1,136,080
Cap Rate 7%
$811,486
Cap Rate 9%
$631,156
Alternative Uses
Best Use
Retail
$811.5K
$710.1K – $946.7K
NOI $56,804 @ 7.0% cap · market cap 2.84%
Second Best
Office B
$259.6K
$227.2K – $302.9K
NOI $18,173 @ 7.0% cap · market cap 0.91%
Theoretical Best
Specialty Retail
$1.14M
$996.3K – $1.33M
NOI $79,704 @ 7.0% cap · market cap 3.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
948
Businesses Nearby
Explore this area
Business Placement
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
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?
Office building - Site includes a small leased rental and a vacant office building with dedicated parking areas for flexible occupancy.
Where is this office building located?
The property is located at 27364 Woodward Ave Royal Oak, MI.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 0.47‑acre site with a 679‑SF building leased to Avis/Budget Rent‑A‑Car; 30‑car parking area included with the leased 679‑SF building; Vacant 4,600‑SF office building with dedicated 15‑car parking lot
