Retail Space with Gated
New
For Sale
$649,000
3627 W Vernor Hwy, Detroit, MI 48216
B4-zoned commercial space with secure off-street parking and a heated garage.
Property Size5,691 SF
Price / SF$114.04
Days on Market2
Property Features for 3627 W Vernor Hwy
General Information
Standard status
Active
Size
5,691 SF
Total Parking Spaces
14
Property subtype
Commercial
Zoning
B4
Additional Details
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$7,510
Amenities
gated parking lot
heated garage
Building Details
Building Size
5,691 SF
Year Built
2002
Buildings
1
Listing Agency:
JTRE Group
Listed By:
Jennifer Tuck
(586) 615-7840
Source:
Elliman
Added: Sep 15
Last Checked: Sep 15 at 2:43PM
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 JTRE Group
Investment Insights
Based on property information with market context.
This 5,691-square-foot retail property at 3627 W Vernor Hwy offers a flexible commercial layout within a building constructed in 2002. The space is described as suitable for storefront retail, dining, creative office, medical or physical therapy use, a wellness gym, and boutique hospitality. A gated lot provides 14 dedicated off-street parking spaces, complemented by a 2-car heated garage that can support inventory, equipment, or vehicle storage.
The property sits along the West Vernor commercial district in Southwest Detroit, less than 1 mile from the historic Ford Train Station and near Corktown. Walk Score is 62, Bike Score is 87, and Transit Score is 47. B4 zoning is identified for the property, with the source also describing potential conversion pathways for transient lodging or multi-family mixed-use.
The property sits along the West Vernor commercial district in Southwest Detroit, less than 1 mile from the historic Ford Train Station and near Corktown. Walk Score is 62, Bike Score is 87, and Transit Score is 47. B4 zoning is identified for the property, with the source also describing potential conversion pathways for transient lodging or multi-family mixed-use.
Key Highlights
- 5,691 square feet of retail space
- 14 dedicated off‑street parking spaces in a gated lot
- 2‑car heated garage for storage or vehicle parking
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
$59,004
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
9.09%
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%
$1,180,080
$1.2M
Cap Rate 7%
$842,914
$842.9K
Cap Rate 9%
$655,600
$655.6K
Market Conditions
NOI Build-Up for 5,691 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
$109.3K $19.20/SF
− Vacancy
−$10.9K −$1.92/SF
EGI
$98.3K $17.28/SF
− OpEx
−$39.3K −$6.91/SF
NOI
$59.0K $10.37/SF
Area
Detroit, MI
Vacancy
10.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
40.00%
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%
$1,180,080
Cap Rate 7%
$842,914
Cap Rate 9%
$655,600
Alternative Uses
Best Use
Specialty Retail
$1.07M
$938.8K – $1.25M
NOI $75,102 @ 7.0% cap · market cap 11.57%
Second Best
Retail
$1.00M
$876.2K – $1.17M
NOI $70,096 @ 7.0% cap · market cap 10.80%
Theoretical Best
Office A
$1.26M
$1.10M – $1.46M
NOI $87,882 @ 7.0% cap · market cap 13.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
543
Businesses Nearby
Explore this area
Business Placement
Demographics for 48216, MI
5,031
Population
3,398
Households
1.5
Avg Household Size
35
Median Age
37%
College-Educated
87%
High-School Grad
2.3 sq mi
ZIP Area
2,187
Density / Sq Mi
$42,278
Median Household Income
$42,189
Median Earnings
$860
Median Rent
$225,300
Median Home Value
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Market
Vacancy Rate% for Office in Detroit, MI
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Frequently Asked Questions
What type of property is this?
Retail space - B4-zoned commercial space with secure off-street parking and a heated garage.
Where is this retail space located?
The property is located at 3627 W Vernor Hwy Detroit, MI.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: 5,691 square feet of retail space; 14 dedicated off‑street parking spaces in a gated lot; 2‑car heated garage for storage or vehicle parking
