Three-Story Office and Classroom
For Sale
$350,000
3442 MCDOUGALL ST, Detroit, MI 48207
Three-story building with office and classroom space, plus a fully equipped commercial kitchen on the lower level.
Property Size4,686 SF
Price / SF$74.69
Days on Market307
Property Features for 3442 MCDOUGALL ST
General Information
Standard status
Active
Size
4,686 SF
Property subtype
Industrial
Amenities
commercial kitchen
parking lot
3
33142
Building Details
Year Built
19
Stories
3
Listing Agency:
O'Connor Realty Detroit, LLC
(313) 963-9891
Listed By:
Vincent Mazzola · License #6501387170
Source:
Xome
Added: Oct 10, 2025
Changed: Aug 8
Last Checked: Aug 11 at 4:48AM
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 O'Connor Realty Detroit, LLC
Investment Insights
Based on property information with market context.
This three-story building at 3442 McDougall Street offers a mix of office and classroom space. The lower level includes a fully equipped commercial kitchen, providing an on-site food preparation component within the building.
The property is located about a block from Gratiot Avenue in Detroit’s McDougall-Hunt neighborhood, just north of the Eastern Market District. Parking is available in the lot behind the building for tenant and visitor access.
With its combination of offices, classrooms, and an equipped kitchen, the building supports flexible operational layouts within a single structure.
The property is located about a block from Gratiot Avenue in Detroit’s McDougall-Hunt neighborhood, just north of the Eastern Market District. Parking is available in the lot behind the building for tenant and visitor access.
With its combination of offices, classrooms, and an equipped kitchen, the building supports flexible operational layouts within a single structure.
Key Highlights
- Three‑story building with a mix of office and classroom space
- Lower level includes a fully equipped commercial kitchen
- Parking available in the lot behind the building
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
$22,791
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
6.51%
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%
$455,820
$455.8K
Cap Rate 7%
$325,586
$325.6K
Cap Rate 9%
$253,233
$253.2K
Market Conditions
NOI Build-Up for 4,686 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
$34.3K $7.32/SF
− Vacancy
−$1.7K −$0.37/SF
EGI
$32.6K $6.95/SF
− OpEx
−$9.8K −$2.08/SF
NOI
$22.8K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$455,820
Cap Rate 7%
$325,586
Cap Rate 9%
$253,233
Alternative Uses
Best Use
Specialty Retail
$883.4K
$773.0K – $1.03M
NOI $61,840 @ 7.0% cap · market cap 17.67%
Second Best
Office B
$678.2K
$593.4K – $791.2K
NOI $47,474 @ 7.0% cap · market cap 13.56%
Theoretical Best
Office A
$1.03M
$904.5K – $1.21M
NOI $72,362 @ 7.0% cap · market cap 20.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
935
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Market
Vacancy Rate% for Office in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Three-story building with office and classroom space, plus a fully equipped commercial kitchen on the lower level.
Where is this office units located?
The property is located at 3442 MCDOUGALL ST Detroit, MI.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Three‑story building with a mix of office and classroom space; Lower level includes a fully equipped commercial kitchen; Parking available in the lot behind the building
