Light Industrial Warehouse with
New
For Sale
$775,000
31186 Eight Mile Road, Farmington Hills, MI 48336
Fenced grounds and grade-level loading support contractor-oriented operations.
Property Size5,000 SF
Lot Size0.92 Acres
Price / SF$155
Days on Market2
Property Features for 31186 Eight Mile Road
General Information
Standard status
Active
Size
5,000 SF
Lot size
0.92 Acres
Property subtype
Industrial - Manufacturing
Zoning
L-1
Financials
Asking Price
$775,000
Gross Income
$49,224
Site & Location
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Warehouse & Industrial
Clear Height
14 ft
Clear Span
Yes
Drive-In Doors
2
Building Details
Building Size
5,000 SF
Listing Agency:
Burger & Company
(734) 890-4609
Listed By:
Jack Bushart · License #6501442083
Source:
Commercialcafe
Added: Aug 10
Changed: Aug 11
Last Checked: Aug 11 at 5:36AM
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 Burger & Company
Investment Insights
Based on property information with market context.
This light industrial warehouse offers 5,000 square feet within a fenced .92-acre site, combining enclosed space with outdoor yard area. The building includes clear-span warehouse space with 14' clear height and two 10' x 12' grade-level doors. L-1 Light Industrial zoning supports the property’s established commercial-industrial profile.
Located at 31186 Eight Mile Road in Farmington Hills, the property sits just east of the Orchard Lake and Eight Mile intersection. The building is currently leased to SERVPRO through 3/31/27, providing an existing occupancy arrangement for the buyer.
Located at 31186 Eight Mile Road in Farmington Hills, the property sits just east of the Orchard Lake and Eight Mile intersection. The building is currently leased to SERVPRO through 3/31/27, providing an existing occupancy arrangement for the buyer.
Key Highlights
- 5,000 square foot warehouse on a fenced .92 acre lot
- Two 10' x 12' grade‑level doors
- Clear‑span warehouse space with 14' clear height
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
$30,082
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
3.88%
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%
$601,640
$601.6K
Cap Rate 7%
$429,743
$429.7K
Cap Rate 9%
$334,244
$334.2K
Market Conditions
NOI Build-Up for 5,000 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
$36.8K $7.35/SF
− Vacancy
−$1.4K −$0.27/SF
EGI
$35.4K $7.08/SF
− OpEx
−$5.3K −$1.06/SF
NOI
$30.1K $6.02/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /SF/Yr
Expense Ratio
15.00%
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%
$601,640
Cap Rate 7%
$429,743
Cap Rate 9%
$334,244
Alternative Uses
Best Use
Warehouse
$429.7K
$376.0K – $501.4K
NOI $30,082 @ 7.0% cap · market cap 3.88%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.08M
$943.7K – $1.26M
NOI $75,492 @ 7.0% cap · market cap 9.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
14 ft
Clear height
2
Drive-in doors
Yes
Fenced yard
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
375
Businesses Nearby
Under-served
Demand for This Use
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 Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Fenced grounds and grade-level loading support contractor-oriented operations.
Where is this warehouse located?
The property is located at 31186 Eight Mile Road Farmington Hills, MI.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: 5,000 square foot warehouse on a fenced .92 acre lot; Two 10' x 12' grade‑level doors; Clear‑span warehouse space with 14' clear height
