Commercial Space Near Detroit
For Sale
$950,000
2987 Franklin St 2, Detroit, MI 48207
Commercial space near Detroit Riverwalk, suitable for multiple uses.
Property Size5,605 SF
Lot Size0.07 Acres
Days on Market256
Property Features for 2987 Franklin St 2
General Information
Standard status
Active
Size
5,605 SF
Lot size
0.07 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$8,701
Building Details
Building Size
5,605 SF
Year Built
1943
Listing Agency:
Good Company
(313) 410-1149
Listed By:
Jay Taylor · License #6501394740
(313) 410-1149
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:51AM
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 Good Company
Investment Insights
Based on property information with market context.
This commercial space is located in Rivertown, adjacent to the Detroit Riverwalk and minutes from downtown Detroit and the Eastern Market. The property is suitable for office, retail, creative, or light industrial uses. The space can be combined with adjacent spaces. Sections 1, 2 + 4 can be purchased solo for $1.25M or in combination with this unit (Section 3) for a discounted $1.99M and a whopping 12,000 sqft. The property is currently occupied with a month-to-month lease. The purchase includes 2 parking spaces in the attached gated parking lot.
Key Highlights
- Prime location next to the Detroit Riverwalk and close to Downtown Detroit and Eastern Market.
- Versatile commercial space suitable for office, retail, creative, or light industrial use.
- Opportunity to combine with adjacent spaces for a total of 12,000 sqft (Sections 1, 2, 3 & 4).
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
$69,036
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
7.27%
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%
$1,380,720
$1.4M
Cap Rate 7%
$986,229
$986.2K
Cap Rate 9%
$767,067
$767.1K
Market Conditions
NOI Build-Up for 5,605 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
$104.3K $18.60/SF
− Vacancy
−$5.6K −$1.00/SF
EGI
$98.6K $17.60/SF
− OpEx
−$29.6K −$5.28/SF
NOI
$69.0K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
30.00%
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%
$1,380,720
Cap Rate 7%
$986,229
Cap Rate 9%
$767,067
Alternative Uses
Best Use
Retail
$986.2K
$863.0K – $1.15M
NOI $69,036 @ 7.0% cap · market cap 7.27%
Second Best
Office B
$811.2K
$709.8K – $946.4K
NOI $56,784 @ 7.0% cap · market cap 5.98%
Theoretical Best
Office A
$1.24M
$1.08M – $1.44M
NOI $86,554 @ 7.0% cap · market cap 9.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
935
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Market
Vacancy Rate% for Office in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Commercial space near Detroit Riverwalk, suitable for multiple uses.
Where is this office units located?
The property is located at 2987 Franklin St 2 Detroit, 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 next to the Detroit Riverwalk and close to Downtown Detroit and Eastern Market.; Versatile commercial space suitable for office, retail, creative, or light industrial use.; Opportunity to combine with adjacent spaces for a total of 12,000 sqft (Sections 1, 2, 3 & 4).
