Flex Space with Gated
For Sale
$1,250,000
2987 Franklin St, Detroit, MI 48207
Versatile flex space suitable for office, retail, creative, or light industrial use, with gated parking included.
Property Size6,677 SF
Price / SF$187.21
Days on Market218
Property Features for 2987 Franklin St
General Information
Standard status
Active
Size
6,677 SF
Total Parking Spaces
2
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$11,607
Building Details
Tenancy
Single
Listing Agency:
Good Company
(248) 733-5811
Listed By:
Jay Taylor · License #6501394740
(313) 410-1149
Source:
Exprealty
Added: Jan 27
Changed: Aug 31
Last Checked: Sep 1 at 11:16PM
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 flex-style commercial space is set up for flexible occupancy, supporting a range of uses including office, retail, creative, or light industrial. The property is offered for sale as a standalone unit, with the option to combine with adjacent spaces. It currently has a month-to-month lease in place, and the purchase includes two parking spaces in the attached gated parking lot.
The location is in Rivertown, right next to the Detroit Riverwalk and within minutes of downtown Detroit and the Eastern Market. The surrounding area offers an established mix of commercial and retail activity, while the proximity to the Riverwalk supports a pedestrian-friendly setting.
For tenants and buyers seeking adaptability, this space can fit operations that need a commercial base with the ability to support different formats over time. The month-to-month tenancy can also be useful for an owner or operator looking for flexibility around timing and occupancy. For those needing additional room, the property can be purchased in combination with adjacent units identified as Sections 1, 2, and 4, which may be purchased solo or together with this unit. In combination, the offering is described as totaling 12,000 square feet.
The location is in Rivertown, right next to the Detroit Riverwalk and within minutes of downtown Detroit and the Eastern Market. The surrounding area offers an established mix of commercial and retail activity, while the proximity to the Riverwalk supports a pedestrian-friendly setting.
For tenants and buyers seeking adaptability, this space can fit operations that need a commercial base with the ability to support different formats over time. The month-to-month tenancy can also be useful for an owner or operator looking for flexibility around timing and occupancy. For those needing additional room, the property can be purchased in combination with adjacent units identified as Sections 1, 2, and 4, which may be purchased solo or together with this unit. In combination, the offering is described as totaling 12,000 square feet.
Key Highlights
- Commercial flex space built in 1943 with versatility for office, retail, creative, or light industrial use
- Location in Rivertown next to the Detroit Riverwalk and minutes from downtown Detroit and Eastern Market
- Open to multiple uses and can be combined with adjacent spaces for a larger total offering
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
$67,644
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
5.41%
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%
$1,352,880
$1.4M
Cap Rate 7%
$966,343
$966.3K
Cap Rate 9%
$751,600
$751.6K
Market Conditions
NOI Build-Up for 6,677 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
$117.0K $17.52/SF
− Vacancy
−$26.8K −$4.01/SF
EGI
$90.2K $13.51/SF
− OpEx
−$22.5K −$3.38/SF
NOI
$67.6K $10.13/SF
Area
Detroit, MI
Vacancy
22.90%
Lease Rate
$17.52 /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%
$1,352,880
Cap Rate 7%
$966,343
Cap Rate 9%
$751,600
Alternative Uses
Best Use
Office B
$966.3K
$845.6K – $1.13M
NOI $67,644 @ 7.0% cap · market cap 5.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.47M
$1.29M – $1.72M
NOI $103,108 @ 7.0% cap · market cap 8.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
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 - Versatile flex space suitable for office, retail, creative, or light industrial use, with gated parking included.
Where is this office units located?
The property is located at 2987 Franklin St Detroit, MI.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Commercial flex space built in 1943 with versatility for office, retail, creative, or light industrial use; Location in Rivertown next to the Detroit Riverwalk and minutes from downtown Detroit and Eastern Market; Open to multiple uses and can be combined with adjacent spaces for a larger total offering
