The Tile Shop NNN Retail
New
For Sale
$4,750,000
37025 Grand River Ave, Farmington, MI 48335
Single-tenant retail asset occupied under a long-term NNN lease with limited landlord maintenance obligations.
Property Size29,651 SF
Days on Market2
Property Features for 37025 Grand River Ave
General Information
Standard status
Active
Size
29,651 SF
Property subtype
Retail
Building Details
Building Size
29,651 SF
Year Built
1974
Tenancy
Single
Listing Agency:
Thomas A. Duke Company
Listed By:
Eric Szerlag · License #6501343471
(248) 476-3494
Source:
Thomasduke
Added: Sep 22
Last Checked: Sep 22 at 1:49PM
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 Thomas A. Duke Company
Investment Insights
Based on property information with market context.
Located at 37025 Grand River Ave in Farmington, Michigan, this single-tenant retail property is occupied by The Tile Shop. The building was constructed in 1974 and operates under a long-term NNN lease, with landlord responsibilities limited to the roof and structure.
The tenant has operated at this site continuously since 1997 and has completed two separate ten-year lease extensions. Approximately 8 years remain in the current lease term, with an 8% base-rent increase scheduled for March 2029. The location ranks in the top 20% of Tile Shop locations nationally and is the company’s 2nd most visited location in Michigan, according to Placer data.
The tenant has operated at this site continuously since 1997 and has completed two separate ten-year lease extensions. Approximately 8 years remain in the current lease term, with an 8% base-rent increase scheduled for March 2029. The location ranks in the top 20% of Tile Shop locations nationally and is the company’s 2nd most visited location in Michigan, according to Placer data.
Key Highlights
- Single‑tenant The Tile Shop location at 37025 Grand River Ave, Farmington, MI 48335
- Long‑term NNN lease with landlord maintenance limited to roof and structure
- Tenant has operated at the site continuously since 1997
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
$319,057
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
6.72%
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%
$6,381,140
$6.4M
Cap Rate 7%
$4,557,957
$4.6M
Cap Rate 9%
$3,545,078
$3.5M
Market Conditions
NOI Build-Up for 29,651 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
$498.1K $16.80/SF
− Vacancy
−$42.3K −$1.43/SF
EGI
$455.8K $15.37/SF
− OpEx
−$136.7K −$4.61/SF
NOI
$319.1K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$6,381,140
Cap Rate 7%
$4,557,957
Cap Rate 9%
$3,545,078
Alternative Uses
Best Use
Retail
$4.56M
$3.99M – $5.32M
NOI $319,057 @ 7.0% cap · market cap 6.72%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.40M
$5.60M – $7.46M
NOI $447,683 @ 7.0% cap · market cap 9.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
473
Businesses Nearby
580
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Hotels & Casinos 100%
Knights Inn
Hotels & Casinos
580 visits/mo
0.4 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
NNN property - Single-tenant retail asset occupied under a long-term NNN lease with limited landlord maintenance obligations.
Where is this nnn property located?
The property is located at 37025 Grand River Ave Farmington, MI.
What is the asking price?
The asking price for this property is $4,750,000.
What are key features of this property?
This property features: Single‑tenant The Tile Shop location at 37025 Grand River Ave, Farmington, MI 48335; Long‑term NNN lease with landlord maintenance limited to roof and structure; Tenant has operated at the site continuously since 1997
