Renovated Multi-Tenant Office
For Sale
Contact for pricing
Pending
33505 State St, Farmington, MI 48335
Updated building systems, restrooms, and a city-supported parking arrangement serve a multi-suite office configuration.
Property Size4,560 SF
Days on Market160
Property Features for 33505 State St
General Information
Standard status
Pending
Size
4,560 SF
Class
B
Total Parking Spaces
57
Property subtype
Office
Zoning
OS Office Service
Occupancy
95%
Net Operating Income
$400,000
Additional Details
Cap Rate
7.27%
Building Details
Year Built
1973
Year Renovated
2024
Stories
2
Tenancy
Multi
Listing Agency:
P.A. Commercial Corporate & Investment Real Estate
Listed By:
Dan Blugerman · License #MI 6501181718
Source:
Crexi
Added: Mar 27
Changed: Sep 1
Last Checked: Sep 1 at 5:10PM
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 P.A. Commercial Corporate & Investment Real Estate
Investment Insights
Based on property information with market context.
This 4,560-square-foot office building contains multiple smaller suites and carries an OS Office Service zoning designation. Constructed in 1973 and renovated in 2024, the property has received substantial capital improvements, including replacement of all major building systems and restroom updates.
The building is positioned in walkable Downtown Farmington at 33505 State St. Parking is supported through an arrangement with the City of Farmington: an adjacent parcel provides public parking, while the city maintains the on-site lot, including cleaning, snow removal, salting, lighting, striping as needed, and general maintenance. Current occupancy is 95%, and the property has a 7.27% cap rate.
The building is positioned in walkable Downtown Farmington at 33505 State St. Parking is supported through an arrangement with the City of Farmington: an adjacent parcel provides public parking, while the city maintains the on-site lot, including cleaning, snow removal, salting, lighting, striping as needed, and general maintenance. Current occupancy is 95%, and the property has a 7.27% cap rate.
Key Highlights
- 4,560‑square‑foot multi‑tenant office building
- 95% occupancy
- 7.27% cap rate
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
$15,698
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
2.85%
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%
$313,960
$314.0K
Cap Rate 7%
$224,257
$224.3K
Cap Rate 9%
$174,422
$174.4K
Market Conditions
NOI Build-Up for 4,560 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
$27.4K $6.00/SF
− Vacancy
−$6.4K −$1.41/SF
EGI
$20.9K $4.59/SF
− OpEx
−$5.2K −$1.15/SF
NOI
$15.7K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$313,960
Cap Rate 7%
$224,257
Cap Rate 9%
$174,422
Alternative Uses
Best Use
Office B
$224.3K
$196.2K – $261.6K
NOI $15,698 @ 7.0% cap · market cap 2.85%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$983.6K
$860.6K – $1.15M
NOI $68,849 @ 7.0% cap · market cap 12.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
763
Businesses Nearby
Explore this area
Business Placement
Demographics for 48335, MI
25,618
Population
11,964
Households
2.1
Avg Household Size
36
Median Age
65%
College-Educated
98%
High-School Grad
7.2 sq mi
ZIP Area
3,558
Density / Sq Mi
$96,359
Median Household Income
$66,646
Median Earnings
$1,451
Median Rent
$366,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Updated building systems, restrooms, and a city-supported parking arrangement serve a multi-suite office configuration.
Where is this office building located?
The property is located at 33505 State St Farmington, MI.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 4,560‑square‑foot multi‑tenant office building; 95% occupancy; 7.27% cap rate
