Renovated Office
For Sale
$1,999,999
28230 Orchard Lake Rd Farmington, Farmington, MI 48334
BI-zoned property configured for office, medical, and professional uses.
Property Size16,732 SF
Days on Market198
Property Features for 28230 Orchard Lake Rd Farmington
General Information
Standard status
Active
Size
16,732 SF
Class
B
Property subtype
Single Tenant Office
Building Details
Building Size
16,732 SF
Year Built
1971
Listing Agency:
The Jonna Group
Listed By:
Simon Jonna · License #6501357188
(248) 226-1610
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 5:47AM
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 The Jonna Group
Investment Insights
Based on property information with market context.
This 16,732-square-foot office property in Farmington Hills is configured as a multi-tenant building. Constructed in 1971 and renovated in 2008, the asset offers a combination of existing office functionality and updated improvements. BI zoning supports office, medical, and professional uses, subject to applicable requirements.
The property is located at 28230 Orchard Lake Rd, with access to I-696, M-5, and Northwestern Hwy. On-site parking includes 66 spaces, and the building offers signage opportunity along the roadway. The surrounding area includes Heritage Park, Farmington Hills Golf Club, and nearby dining options. The property is positioned within Oakland County’s business district and is presented for owner-user or investor consideration.
The property is located at 28230 Orchard Lake Rd, with access to I-696, M-5, and Northwestern Hwy. On-site parking includes 66 spaces, and the building offers signage opportunity along the roadway. The surrounding area includes Heritage Park, Farmington Hills Golf Club, and nearby dining options. The property is positioned within Oakland County’s business district and is presented for owner-user or investor consideration.
Key Highlights
- 16,732 SF multi‑tenant office building
- BI zoning supports office, medical, and professional uses
- Renovated in 2008; originally constructed in 1971
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
$57,600
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
2.88%
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%
$1,152,000
$1.2M
Cap Rate 7%
$822,857
$822.9K
Cap Rate 9%
$640,000
$640.0K
Market Conditions
NOI Build-Up for 16,732 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
$100.4K $6.00/SF
− Vacancy
−$23.6K −$1.41/SF
EGI
$76.8K $4.59/SF
− OpEx
−$19.2K −$1.15/SF
NOI
$57.6K $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%
$1,152,000
Cap Rate 7%
$822,857
Cap Rate 9%
$640,000
Alternative Uses
Best Use
Office B
$822.9K
$720.0K – $960.0K
NOI $57,600 @ 7.0% cap · market cap 2.88%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.61M
$3.16M – $4.21M
NOI $252,626 @ 7.0% cap · market cap 12.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
947
Businesses Nearby
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.
Frequently Asked Questions
What type of property is this?
Office building - BI-zoned property configured for office, medical, and professional uses.
Where is this office building located?
The property is located at 28230 Orchard Lake Rd Farmington Farmington, MI.
What is the asking price?
The asking price for this property is $1,999,999.
What are key features of this property?
This property features: 16,732 SF multi‑tenant office building; BI zoning supports office, medical, and professional uses; Renovated in 2008; originally constructed in 1971
