Building Details

Year Built 1890

Buildings 1

Stories 2

Tenancy Single

Listing Agency: Signature Associates m***@signatureassociates.com Show Phone

Listed By: ANATOLA SESI · License #6501444197

Source: Crexi

Added: May 23, 2025 Changed: Aug 12 Last Checked: Aug 19 at 8:02PM

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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 Signature Associates

Investment Insights

Based on property information with market context.

This mixed-use property, located in Franklin, Michigan, is available for sale. The building provides 3,866 square feet of space suitable for a combination of retail and office uses. The property is located at 32440 Franklin Rd.

Key Highlights

• No property information was provided to extract selling points.

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

$47,617

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

3.19%

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%

$952,340 $952.3K

Cap Rate 7%

$680,243 $680.2K

Cap Rate 9%

$529,078 $529.1K

Market Conditions

NOI Build-Up for 3,866 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

$71.9K $18.60/SF

− Vacancy

−$3.9K −$1.00/SF

EGI

$68.0K $17.60/SF

− OpEx

−$20.4K −$5.28/SF

NOI

$47.6K $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%

$952,340

Cap Rate 7%

$680,243

Cap Rate 9%

$529,078

Alternative Uses

Best Use

Retail

$680.2K

$595.2K – $793.6K (±1% cap)

NOI $47,617 @ 7.0% cap · market cap 3.19%

Second Best

Mixed Use

$656.1K

$574.1K – $765.5K (±1% cap)

NOI $45,928 @ 7.0% cap · market cap 3.07%

Theoretical Best

Office A

$852.9K

$746.3K – $995.0K (±1% cap)

NOI $59,700 @ 7.0% cap · market cap 3.99%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Mixed-use properties

Suggested Use

Top Pick Restaurant Real Estate Agency Hair Salon Nail Salon Spa & Massage Center Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

101

Businesses Nearby

Explore this area Business Placement

Demographics for 48025, MI

14,878

Population

5,866

Households

2.5

Avg Household Size

45

Median Age

75%

College-Educated

98%

High-School Grad

8.0 sq mi

ZIP Area

1,860

Density / Sq Mi

$177,126

Median Household Income

$97,095

Median Earnings

$2,397

Median Rent

$514,500

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Mixed-use property in Franklin, Michigan, totaling 3,866 square feet.

Where is this mixed-use property located?

The property is located at 32440 Franklin Road Franklin, MI.

What is the asking price?

The asking price for this property is $1,495,000.

What are key features of this property?

This property features: No property information was provided to extract selling points.