Flex Space with Divisible
For Sale
$599,000
28550 Joy Rd, Livonia, MI 48150
Flexible commercial building with separate front and rear access, multiple HVAC systems, and immediate occupancy.
Property Size5,000 SF
Lot Size0.50 Acres
Price / SF$119.80
Days on Market9
Property Features for 28550 Joy Rd
General Information
Standard status
Active
Size
5,000 SF
Lot size
0.50 Acres
Building Details
Year Built
1986
Buildings
1
Building Size
5,000 SF
Listing Agency:
North Shores Properties, LLC.
(313) 701-5503
Listed By:
Robin Massey
Source:
Katie-k
Added: Aug 22
Changed: Aug 30
Last Checked: Aug 30 at 5:49AM
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 North Shores Properties, LLC.
Investment Insights
Based on property information with market context.
This 5,000 sq ft flex space in Livonia, Michigan, was built in 1986 and provides a practical configuration for a range of commercial operations. The building includes four bathrooms, two multi-ton furnaces, two air conditioners, and an interior dividing wall. Front and rear entrances support a layout that can function as two separate units.
The property occupies 1/2 acre at 28550 Joy Rd and measures 83 x 240. More than 20 parking spaces are positioned at both the front and rear of the building. Immediate occupancy is available.
The property occupies 1/2 acre at 28550 Joy Rd and measures 83 x 240. More than 20 parking spaces are positioned at both the front and rear of the building. Immediate occupancy is available.
Key Highlights
- 5,000 sq ft flex space on 1/2 acre
- Potential for two separate units with dividing wall and front/rear entrances
- More than 20 parking spaces at the front and rear
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
$31,548
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
5.27%
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%
$630,960
$631.0K
Cap Rate 7%
$450,686
$450.7K
Cap Rate 9%
$350,533
$350.5K
Market Conditions
NOI Build-Up for 5,000 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
$50.4K $10.08/SF
− Vacancy
−$1.9K −$0.37/SF
EGI
$48.5K $9.71/SF
− OpEx
−$17.0K −$3.40/SF
NOI
$31.5K $6.31/SF
Area
Wayne County, MI
Vacancy
3.70%
Lease Rate
$10.08 /SF/Yr
Expense Ratio
35.00%
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%
$630,960
Cap Rate 7%
$450,686
Cap Rate 9%
$350,533
Alternative Uses
Best Use
Flex RnD
$450.7K
$394.4K – $525.8K
NOI $31,548 @ 7.0% cap · market cap 5.27%
Second Best
Industrial
$369.8K
$323.6K – $431.4K
NOI $25,885 @ 7.0% cap · market cap 4.32%
Theoretical Best
Specialty Retail
$925.7K
$810.0K – $1.08M
NOI $64,800 @ 7.0% cap · market cap 10.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
393
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48150, MI
26,573
Population
10,724
Households
2.5
Avg Household Size
42
Median Age
36%
College-Educated
96%
High-School Grad
12.1 sq mi
ZIP Area
2,196
Density / Sq Mi
$94,058
Median Household Income
$50,779
Median Earnings
$1,328
Median Rent
$228,600
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible commercial building with separate front and rear access, multiple HVAC systems, and immediate occupancy.
Where is this flex space located?
The property is located at 28550 Joy Rd Livonia, MI.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: 5,000 sq ft flex space on 1/2 acre; Potential for two separate units with dividing wall and front/rear entrances; More than 20 parking spaces at the front and rear
