Commercial Property with Façade Grant
For Sale
$500,000
28728 GRAND RIVER AVE, Farmington Hills, MI 48336
Approved City of Farmington Hills façade improvement grant up to $30,000 for eligible exterior, signage, and curb appeal upgrades.
Property Size5,416 SF
Price / SF$92.32
Days on Market68
Property Features for 28728 GRAND RIVER AVE
General Information
Standard status
Active
Size
5,416 SF
Property subtype
Industrial
Amenities
3
80120
Building Details
Year Built
19
Listing Agency:
(586) 556-1133
Listed By:
Keller Williams Lakeside
(586) 556-1133
Source:
Xome
Added: Jun 10
Changed: Aug 12
Last Checked: Aug 16 at 3:35AM
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 Keller Williams Lakeside
Investment Insights
Based on property information with market context.
This property presents a strong owner-user and investment opportunity with commercial office and retail space. A key value-add component is the approval for a City of Farmington Hills façade improvement grant, which provides reimbursement up to $30,000 for eligible exterior improvements, signage, building enhancements, and curb appeal upgrades, subject to city approval and program requirements.
Located at 28728 Grand River Avenue in Farmington Hills, the property is described as highly visible with substantial frontage on a major corridor, supporting accessibility and day-to-day customer or patient-style visibility for appropriate uses. The City is also noted as receptive to multiple redevelopment and reuse concepts, including medical office, professional office, and retail.
Buyer must verify zoning, permitted uses, grant eligibility, and redevelopment opportunities with the City of Farmington Hills.
Located at 28728 Grand River Avenue in Farmington Hills, the property is described as highly visible with substantial frontage on a major corridor, supporting accessibility and day-to-day customer or patient-style visibility for appropriate uses. The City is also noted as receptive to multiple redevelopment and reuse concepts, including medical office, professional office, and retail.
Buyer must verify zoning, permitted uses, grant eligibility, and redevelopment opportunities with the City of Farmington Hills.
Key Highlights
- Commercial property at 28728 Grand River Avenue in Farmington Hills
- Approved City of Farmington Hills façade improvement grant with up to $30,000 reimbursement for eligible exterior, signage, and curb appeal upgrades (subject to City approval and program requirements)
- Lot dimensions listed as 80120
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
$18,645
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
3.73%
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%
$372,900
$372.9K
Cap Rate 7%
$266,357
$266.4K
Cap Rate 9%
$207,167
$207.2K
Market Conditions
NOI Build-Up for 5,416 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
$32.5K $6.00/SF
− Vacancy
−$7.6K −$1.41/SF
EGI
$24.9K $4.59/SF
− OpEx
−$6.2K −$1.15/SF
NOI
$18.6K $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%
$372,900
Cap Rate 7%
$266,357
Cap Rate 9%
$207,167
Alternative Uses
Best Use
Retail
$832.5K
$728.5K – $971.3K
NOI $58,278 @ 7.0% cap · market cap 11.66%
Second Best
Office B
$266.4K
$233.1K – $310.8K
NOI $18,645 @ 7.0% cap · market cap 3.73%
Theoretical Best
Specialty Retail
$1.17M
$1.02M – $1.36M
NOI $81,773 @ 7.0% cap · market cap 16.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
979
Businesses Nearby
Explore this area
Business Placement
Demographics for 48336, MI
26,802
Population
12,296
Households
2.2
Avg Household Size
42
Median Age
44%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,882
Density / Sq Mi
$85,325
Median Household Income
$54,077
Median Earnings
$1,141
Median Rent
$247,600
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 units - Approved City of Farmington Hills façade improvement grant up to $30,000 for eligible exterior, signage, and curb appeal upgrades.
Where is this office units located?
The property is located at 28728 GRAND RIVER AVE Farmington Hills, MI.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Commercial property at 28728 Grand River Avenue in Farmington Hills; Approved City of Farmington Hills façade improvement grant with up to $30,000 reimbursement for eligible exterior, signage, and curb appeal upgrades (subject to City approval and program requirements); Lot dimensions listed as 80120
