Flex Space Near Detroit
For Sale
$950,000
2987 Franklin Street #2, Detroit, MI 48207
Commercial-zoned unit with two parking spaces in an attached gated lot.
Property Size5,605 SF
Days on Market306
Property Features for 2987 Franklin Street #2
General Information
Standard status
Active
Size
5,605 SF
Total Parking Spaces
2
Property subtype
Commercial
Zoning
Commercial
Occupancy
100%
Building Details
Building Size
5,605 SF
Year Built
1943
Stories
1
Tenancy
Single
Listing Agency:
Good Company
(313) 410-1149
Listed By:
Jay Taylor · License #6501394740
(313) 410-1149
Source:
Homesforsaleinmich
Added: Oct 30, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:39PM
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-space unit at 2987 Franklin Street #2 was built in 1943 and is zoned Commercial. The property is suited to office, retail, creative, or light industrial use, providing a versatile base for several commercial formats. It is currently occupied under a month-to-month lease.
The offering is positioned beside the Detroit Riverwalk and within minutes of downtown Detroit and Eastern Market. Two parking spaces are included in an attached gated parking lot. Adjacent sections may also be acquired with the unit, creating a combined 12,000-square-foot configuration.
The offering is positioned beside the Detroit Riverwalk and within minutes of downtown Detroit and Eastern Market. Two parking spaces are included in an attached gated parking lot. Adjacent sections may also be acquired with the unit, creating a combined 12,000-square-foot configuration.
Key Highlights
- Commercial zoning supports office, retail, creative, or light industrial use
- Built in 1943
- Current month‑to‑month lease
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
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
935
Businesses Nearby
Under-served
Demand for This Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial-zoned unit with two parking spaces in an attached gated lot.
Where is this flex space located?
The property is located at 2987 Franklin Street #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: Commercial zoning supports office, retail, creative, or light industrial use; Built in 1943; Current month‑to‑month lease
