Romulus Medical/Dental Investment
For Sale
$600,000
37235 GODDARD, Romulus, MI 48174
2,900 SF medical/dental space in excellent condition, built in 2000.
Property Size2,912 SF
Price / SF$206.04
Days on Market703
Property Features for 37235 GODDARD
General Information
Standard status
Active
Size
2,912 SF
Property subtype
Industrial
Amenities
3
Asphalt
Commercial
200.00 x 120.00
Paved Road.
Building Details
Year Built
1920
Listing Agency:
Mutual Realty, LLC
(248) 474-6464
Listed By:
Nicholas Heppard · License #6501258018
(248) 408-5763
Source:
Xome
Added: Sep 18, 2024
Changed: Aug 12
Last Checked: Aug 21 at 4:23AM
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 Mutual Realty, LLC
Investment Insights
Based on property information with market context.
This property presents an investment opportunity with 2,900 square feet of space suitable for dental or medical use. Constructed in 2000, the building is in excellent condition and features modern technology. The current tenants are part of a long-term established dental group with multiple locations throughout the United States. The tenants are in the second year of their second five-year renewal term, with an option for a third renewal term. The property is situated in a convenient location in Romulus, with proximity to the I-94 and I-275 freeways.
Key Highlights
- Long‑term established dental group tenants with multiple locations.
- Tenants are in the 2nd year of their 2nd, 5‑year renewal term, with a 3rd renewal option available.
- 2,900 square feet of prime dental/medical space.**
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
$30,665
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
5.11%
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%
$613,300
$613.3K
Cap Rate 7%
$438,071
$438.1K
Cap Rate 9%
$340,722
$340.7K
Market Conditions
NOI Build-Up for 2,912 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 $20.04/SF
− Vacancy
−$7.2K −$2.49/SF
EGI
$51.1K $17.55/SF
− OpEx
−$20.4K −$7.02/SF
NOI
$30.7K $10.53/SF
Area
Wayne County, MI
Vacancy
12.42%
Lease Rate
$20.04 /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%
$613,300
Cap Rate 7%
$438,071
Cap Rate 9%
$340,722
Alternative Uses
Best Use
Healthcare Medical
$438.1K
$383.3K – $511.1K
NOI $30,665 @ 7.0% cap · market cap 5.11%
Second Best
Office B
$143.2K
$125.3K – $167.1K
NOI $10,025 @ 7.0% cap · market cap 1.67%
Theoretical Best
Specialty Retail
$539.1K
$471.8K – $629.0K
NOI $37,740 @ 7.0% cap · market cap 6.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
181
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48174, MI
33,683
Population
13,124
Households
2.6
Avg Household Size
38
Median Age
17%
College-Educated
89%
High-School Grad
40.8 sq mi
ZIP Area
826
Density / Sq Mi
$65,675
Median Household Income
$41,186
Median Earnings
$1,053
Median Rent
$151,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - 2,900 SF medical/dental space in excellent condition, built in 2000.
Where is this medical office space located?
The property is located at 37235 GODDARD Romulus, MI.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Long‑term established dental group tenants with multiple locations.; Tenants are in the 2nd year of their 2nd, 5‑year renewal term, with a 3rd renewal option available.; 2,900 square feet of prime dental/medical space.**
