High-Visibility Retail/Office Investment
For Sale
Contact for pricing
29229 Northwestern Hwy, Southfield, MI 48034
Versatile property with high traffic, development potential, and diverse zoning.
Property Size10,400 SF
Lot Size1.00 Acre
Price / SF$91.35
Days on Market776
Property Features for 29229 Northwestern Hwy
General Information
Standard status
Active
Size
10,400 SF
Lot size
1.00 Acre
Property subtype
Retail, Office, Mixed Use, Land
Occupancy
30%
Lease Type
NNN
Building Details
Tenancy
Multi
Listing Agency:
EXP Realty LLC
(248) 617-7777
Listed By:
Joe Sesi · License #MI6501424978
Source:
Crexi
Added: Jul 6, 2024
Changed: Aug 19
Last Checked: Aug 20 at 12:50PM
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 EXP Realty LLC
Investment Insights
Based on property information with market context.
This property offers a highly visible retail or office opportunity in a prime Oakland County location. Situated on approximately 1 acre, the property includes 10,460 square feet of rentable space across three buildings with ample parking. The location provides easy access and excellent visibility on Northwestern Highway, which sees over 43,000 vehicles daily. It benefits from a signalized intersection with a dedicated turning lane and is located minutes from I-696, which sees 135,000 vehicles per day. The B-3 zoning allows for a variety of uses, including medical offices, banks, hotels, restaurants, retail, and with special approval, even a medical marijuana provisioning center. Located in a federal opportunity zone, the property offers potential tax savings for real estate investors. The front building has 3,957 square feet across two stories and a basement, featuring a conference room and storage on the second floor, a reception area, administration area, and five offices on the first floor, and additional storage, four offices, and a cubicle area in the basement. The middle building has 1,935 square feet across two stories with five offices, a reception area on the first floor, and storage space on the second floor. The back building is a 4,568-square-foot single-story building currently occupied by a dog grooming and boarding tenant. The surrounding area has affluent demographics, with a 5-mile population of over 190,000 residents and an average annual household income of $107,068.
Key Highlights
- Prime location on Northwestern Highway with high traffic volume and easy access to I‑696.
- Versatile B‑3 zoning permits diverse uses.
- Substantial rentable space (10,460 sq ft) across 3 buildings on approximately 1 acre with ample parking.
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
$35,802
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
3.77%
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%
$716,040
$716.0K
Cap Rate 7%
$511,457
$511.5K
Cap Rate 9%
$397,800
$397.8K
Market Conditions
NOI Build-Up for 10,400 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
$62.4K $6.00/SF
− Vacancy
−$14.7K −$1.41/SF
EGI
$47.7K $4.59/SF
− OpEx
−$11.9K −$1.15/SF
NOI
$35.8K $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%
$716,040
Cap Rate 7%
$511,457
Cap Rate 9%
$397,800
Alternative Uses
Best Use
Retail
$1.60M
$1.40M – $1.87M
NOI $111,908 @ 7.0% cap · market cap 11.78%
Second Best
Mixed Use
$1.50M
$1.32M – $1.76M
NOI $105,300 @ 7.0% cap · market cap 11.08%
Theoretical Best
Specialty Retail
$2.24M
$1.96M – $2.62M
NOI $157,023 @ 7.0% cap · market cap 16.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,770
Businesses Nearby
Explore this area
Business Placement
Demographics for 48034, MI
14,480
Population
8,634
Households
1.7
Avg Household Size
43
Median Age
40%
College-Educated
96%
High-School Grad
4.3 sq mi
ZIP Area
3,367
Density / Sq Mi
$59,634
Median Household Income
$40,068
Median Earnings
$1,275
Median Rent
$259,400
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?
Mixed-use property - Versatile property with high traffic, development potential, and diverse zoning.
Where is this mixed-use property located?
The property is located at 29229 Northwestern Hwy Southfield, MI.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Prime location on Northwestern Highway with high traffic volume and easy access to I‑696.; Versatile B‑3 zoning permits diverse uses.; Substantial rentable space (10,460 sq ft) across 3 buildings on approximately 1 acre with ample parking.
