Clean Industrial Building with Expansion
For Sale
$5,500,000
3275 Lapeer West Rd, Auburn Hills, MI 48326
Expandable industrial building with I-75 exposure and income-producing billboard.
Property Size46,010 SF
Days on Market167
Property Features for 3275 Lapeer West Rd
General Information
Standard status
Active
Size
46,010 SF
Property subtype
Industrial
Building Details
Building Size
46,010 SF
Year Built
1985
Listing Agency:
(248) 568-4640
Listed By:
Joe Hamway
(248) 568-4640
Source:
Tcnworldwide
Added: Mar 6
Changed: Aug 20
Last Checked: Aug 19 at 5:23AM
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 Joe Hamway
Investment Insights
Based on property information with market context.
This very clean industrial building offers expansion possibilities. The property features skylights, air lines, a paging system, and a lunch room/kitchen. It benefits from exposure to I-75 and includes an income-producing billboard on site. The property is located on Lapeer West Rd in Auburn Hills, MI.
Key Highlights
- I‑75 Exposure
- Income Producing Billboard
- Expandable
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
$276,812
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
5.03%
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%
$5,536,240
$5.5M
Cap Rate 7%
$3,954,457
$4.0M
Cap Rate 9%
$3,075,689
$3.1M
Market Conditions
NOI Build-Up for 46,010 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
$338.2K $7.35/SF
− Vacancy
−$12.5K −$0.27/SF
EGI
$325.7K $7.08/SF
− OpEx
−$48.8K −$1.06/SF
NOI
$276.8K $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%
$5,536,240
Cap Rate 7%
$3,954,457
Cap Rate 9%
$3,075,689
Alternative Uses
Best Use
Warehouse
$3.95M
$3.46M – $4.61M
NOI $276,812 @ 7.0% cap · market cap 5.03%
Second Best
Industrial
$3.26M
$2.85M – $3.80M
NOI $227,963 @ 7.0% cap · market cap 4.14%
Theoretical Best
Specialty Retail
$9.92M
$8.68M – $11.58M
NOI $694,677 @ 7.0% cap · market cap 12.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
147
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48326, MI
22,228
Population
12,219
Households
1.8
Avg Household Size
36
Median Age
47%
College-Educated
93%
High-School Grad
16.9 sq mi
ZIP Area
1,315
Density / Sq Mi
$79,468
Median Household Income
$46,012
Median Earnings
$1,411
Median Rent
$235,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- SmartGuard and SmartAxess — 2110 Walton Blvd. Suite F, Auburn Hills, MI 48326
- U-Pack — 3660 Lapeer Rd, Auburn Hills, MI 48326
Frequently Asked Questions
What type of property is this?
Warehouse - Expandable industrial building with I-75 exposure and income-producing billboard.
Where is this warehouse located?
The property is located at 3275 Lapeer West Rd Auburn Hills, MI.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: I‑75 Exposure; Income Producing Billboard; Expandable
