Midtown Retail Building For
For Sale
$500,000
3711 2nd Ave, Detroit, MI 48201
3,139 SF retail building in a walkable Midtown location.
Property Size3,139 SF
Lot Size0.08 Acres
Days on Market267
Property Features for 3711 2nd Ave
General Information
Standard status
Active
Size
3,139 SF
Lot size
0.08 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$15,644
Building Details
Building Size
3,139 SF
Year Built
1955
Listing Agency:
O'Connor Real Estate
(313) 963-9891
Listed By:
Ryan P Cooley · License #6501387170
(313) 963-9891
Source:
Elliman
Added: Nov 27, 2025
Changed: Aug 13
Last Checked: Aug 20 at 9:24AM
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 Real Estate
Investment Insights
Based on property information with market context.
Located one block from Selden Standard on 2nd Avenue in Midtown, this one-story building offers 3,139 square feet of space. The property sits on a 3,800-square-foot (0.087-acre) lot with frontage on 2nd Avenue. The location is highly walkable and provides convenient access to nearby establishments such as SheWolf, Roccos Italian Deli, Barcade, and Seasons. Situated adjacent to Midtown's cultural district, the property offers easy access to Detroit's museums. Environmental due diligence has been completed, including Phase I and Phase II Environmental Site Assessments, a Baseline Environmental Assessment (BEA), and a due care plan. The ceiling has been treated with an anti-mold spray and has not seen fire damage.
Key Highlights
- Prime location on 2nd Avenue in Midtown, one block from Selden Standard and close to other popular restaurants and entertainment.
- Walkable location adjacent to Midtown's cultural district with easy access to Detroit's museums.
- Building size: 3,139 square feet on a 3,800 square foot lot.
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
$38,663
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
7.73%
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%
$773,260
$773.3K
Cap Rate 7%
$552,329
$552.3K
Cap Rate 9%
$429,589
$429.6K
Market Conditions
NOI Build-Up for 3,139 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
$58.4K $18.60/SF
− Vacancy
−$3.2K −$1.00/SF
EGI
$55.2K $17.60/SF
− OpEx
−$16.6K −$5.28/SF
NOI
$38.7K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$773,260
Cap Rate 7%
$552,329
Cap Rate 9%
$429,589
Alternative Uses
Best Use
Retail
$552.3K
$483.3K – $644.4K
NOI $38,663 @ 7.0% cap · market cap 7.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$692.5K
$605.9K – $807.9K
NOI $48,473 @ 7.0% cap · market cap 9.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,203
Businesses Nearby
115k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 37%
Dining 34%
Shops & Services 18%
Apparel 10%
Whole Foods Market
Groceries
42,654 visits/mo
0.4 miles
McDonald's
Dining
31,104 visits/mo
0.4 miles
Shinola
Apparel
9,011 visits/mo
0.3 miles
Condado Tacos
Dining
7,597 visits/mo
0.1 miles
Flagstar Bank
Shops & Services
4,885 visits/mo
0.3 miles
Demographics for 48201, MI
14,500
Population
9,900
Households
1.5
Avg Household Size
33
Median Age
37%
College-Educated
88%
High-School Grad
1.9 sq mi
ZIP Area
7,632
Density / Sq Mi
$24,392
Median Household Income
$36,835
Median Earnings
$841
Median Rent
$401,500
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - 3,139 SF retail building in a walkable Midtown location.
Where is this storefront property located?
The property is located at 3711 2nd Ave Detroit, MI.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Prime location on 2nd Avenue in Midtown, one block from Selden Standard and close to other popular restaurants and entertainment.; Walkable location adjacent to Midtown's cultural district with easy access to Detroit's museums.; Building size: 3,139 square feet on a 3,800 square foot lot.
