Farmington Hills Office
For Sale
Contact for pricing
28116 Orchard Lake Rd, Farmington Hills, MI 48334
Office space available in Farmington Hills, Michigan.
Property Size10,727 SF
Price / SF$111.77
Days on Market185
Property Features for 28116 Orchard Lake Rd
General Information
Standard status
Active
Size
10,727 SF
Class
B
Total Parking Spaces
48
Property subtype
Office
Zoning
OS2
Building Details
Year Built
1984
Tenancy
Multi
Listing Agency:
Winston-Traitel Realty Inc
(248) 624-7200
Listed By:
Mark Lusky · License #MI
Source:
Crexi
Added: Feb 18
Changed: Aug 19
Last Checked: Aug 22 at 5:08AM
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 Winston-Traitel Realty Inc
Investment Insights
Based on property information with market context.
This commercial property in Farmington Hills, Michigan, offers 10,727 square feet of office space. The property is suitable for office use.
Key Highlights
- Office Property
- Spacious 10,727 SqFt
- Built in 1984
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
$36,928
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
3.08%
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%
$738,560
$738.6K
Cap Rate 7%
$527,543
$527.5K
Cap Rate 9%
$410,311
$410.3K
Market Conditions
NOI Build-Up for 10,727 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
$64.4K $6.00/SF
− Vacancy
−$15.1K −$1.41/SF
EGI
$49.2K $4.59/SF
− OpEx
−$12.3K −$1.15/SF
NOI
$36.9K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /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%
$738,560
Cap Rate 7%
$527,543
Cap Rate 9%
$410,311
Alternative Uses
Best Use
Office B
$527.5K
$461.6K – $615.5K
NOI $36,928 @ 7.0% cap · market cap 3.08%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.31M
$2.02M – $2.70M
NOI $161,961 @ 7.0% cap · market cap 13.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
947
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48334, MI
18,731
Population
8,528
Households
2.2
Avg Household Size
45
Median Age
59%
College-Educated
96%
High-School Grad
9.1 sq mi
ZIP Area
2,058
Density / Sq Mi
$98,937
Median Household Income
$56,067
Median Earnings
$1,511
Median Rent
$327,200
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.
Similar Off Market Nearby
- Softech, INC. - Dental Office Computer Systems and software — 28104 Orchard Lake Rd, Farmington Hills, MI 48334
- Safety Net - Metro Detroit IT Company — 28580 Orchard Lake Rd Unit 225, Farmington Hills, MI 48334
- We Fix It Phone Repair — 27883 Orchard Lake Rd, Farmington Hills, MI 48334
- The Computer Group Inc — 32985 Hamilton Ct Unit 135, Farmington, MI 48334
- Callidus — 32985 Hamilton Ct, Farmington Hills, MI 48334
Frequently Asked Questions
What type of property is this?
Office space - Office space available in Farmington Hills, Michigan.
Where is this office space located?
The property is located at 28116 Orchard Lake Rd Farmington Hills, MI.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: Office Property; Spacious 10,727 SqFt; Built in 1984
