Light Industrial Warehouse
For Sale
Contact for pricing
32432 Eight Mile Road, Farmington, MI 48336
Two warehouse buildings on a light industrial lot offer four grade level doors, with one building leased month to month.
Property Size5,912 SF
Lot Size0.40 Acres
Price / SF$88.80
Days on Market52
Property Features for 32432 Eight Mile Road
General Information
Standard status
Active
Size
5,912 SF
Lot size
0.40 Acres
Property subtype
Industrial
Zoning
Light Industrial
Investment Type
Owner/User
Additional Details
Road Access
Yes
Drive-In Doors
4
Building Details
Year Built
1986
Buildings
2
Tenancy
Multi
Listing Agency:
Burger & Company
Listed By:
Jack Bushart · License #6501442083
(734) 890-4609
Source:
Crexi
Added: Jul 16
Changed: Sep 3
Last Checked: Aug 29 at 1:04PM
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 property includes two warehouse buildings totaling 2,172 square feet and 3,740 square feet on a 0.40-acre lot. Each building is equipped with grade level doors, with four total doors across the site and listed as varying in size. The North building is leased on a month-to-month basis, while the South building is vacant.
The South building has frontage on 8 Mile Road, and the property is located just east of the Farmington Road & 8 Mile intersection. The property is zoned L-1 Light Industrial, supporting warehouse and light industrial uses.
The site presents a flexible owner-user and investment setup with both an occupied and a vacant warehouse component, along with drive-up grade level access through multiple doors.
The South building has frontage on 8 Mile Road, and the property is located just east of the Farmington Road & 8 Mile intersection. The property is zoned L-1 Light Industrial, supporting warehouse and light industrial uses.
The site presents a flexible owner-user and investment setup with both an occupied and a vacant warehouse component, along with drive-up grade level access through multiple doors.
Key Highlights
- 1986‑built industrial property with two warehouse buildings totaling 2,172 SF and 3,740 SF
- 0.40‑acre lot with 8 Mile frontage and access near the Farmington Rd & 8 Mile intersection
- Four grade level doors across the two buildings
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
$35,569
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
6.78%
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%
$711,380
$711.4K
Cap Rate 7%
$508,129
$508.1K
Cap Rate 9%
$395,211
$395.2K
Market Conditions
NOI Build-Up for 5,912 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
$43.5K $7.35/SF
− Vacancy
−$1.6K −$0.27/SF
EGI
$41.8K $7.08/SF
− OpEx
−$6.3K −$1.06/SF
NOI
$35.6K $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%
$711,380
Cap Rate 7%
$508,129
Cap Rate 9%
$395,211
Alternative Uses
Best Use
Warehouse
$508.1K
$444.6K – $592.8K
NOI $35,569 @ 7.0% cap · market cap 6.78%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,262 @ 7.0% cap · market cap 17.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Drive-in doors
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
699
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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- Links Moving Systems - Farmington — 30835 W 10 Mile Rd #1047, Farmington Hills, MI 48336
Frequently Asked Questions
What type of property is this?
Warehouse - Two warehouse buildings on a light industrial lot offer four grade level doors, with one building leased month to month.
Where is this warehouse located?
The property is located at 32432 Eight Mile Road Farmington, MI.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 1986‑built industrial property with two warehouse buildings totaling 2,172 SF and 3,740 SF; 0.40‑acre lot with 8 Mile frontage and access near the Farmington Rd & 8 Mile intersection; Four grade level doors across the two buildings
