Medical Office Building with
For Sale
Contact for pricing
37244 S Groesbeck Hwy, Clinton Twp, MI 48036
Medical/office building near hospitals with expansion potential.
Property Size6,655 SF
Price / SF$195.33
Days on Market553
Property Features for 37244 S Groesbeck Hwy
General Information
Standard status
Active
Size
6,655 SF
Property subtype
Office
Zoning
Commercial
Lease Type
NNN
Investment Type
Owner/User
Building Details
Year Built
1972
Year Renovated
2024
Buildings
1
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
Realty Executives Home Towne (Shelby)
(810) 300-1650
Listed By:
Frank Locricchio · License #6501314190
Source:
Crexi
Added: Feb 4, 2025
Changed: Aug 8
Last Checked: Aug 11 at 6:29AM
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 Realty Executives Home Towne (Shelby)
Investment Insights
Based on property information with market context.
This commercial property is zoned for medical and general office use. It is located within a mile of McLaren Macomb Hospital and minutes from Henry Ford Macomb Hospital and other major outpatient facilities. The Parkway Office Building is a stand-alone structure with high visibility, benefiting from a traffic count of 28,816 vehicles per day on Groesbeck Highway. The property includes a large private parking lot and an attached vacant lot, allowing for expansion. The floor plan is versatile, featuring 12 ft structural ceilings with built-in drop ceilings. Each unit is separately metered for gas and electric. Unit A offers 3854 square feet, Unit B, currently occupied by anchor tenant Edward Jones, provides 1054 square feet, and Unit C includes 1600 square feet. All three units have undergone recent interior remodeling within the last two years. The parking lot was resealed in 2024, and the AC unit was replaced in 2021. A large marquis sign is included. The property offers potential rental income of $16-25 per square foot and is suitable for owner-occupants and investors.
Key Highlights
- Zoned for medical and general office use, located near McLaren Macomb and Henry Ford Macomb Hospitals.
- High visibility location with a traffic count of 28,816 per day.
- Large private parking lot for client convenience.
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
$69,772
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
5.37%
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%
$1,395,440
$1.4M
Cap Rate 7%
$996,743
$996.7K
Cap Rate 9%
$775,244
$775.2K
Market Conditions
NOI Build-Up for 6,655 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
$131.8K $19.80/SF
− Vacancy
−$15.5K −$2.33/SF
EGI
$116.3K $17.47/SF
− OpEx
−$46.5K −$6.99/SF
NOI
$69.8K $10.48/SF
Area
Macomb County, MI
Vacancy
11.75%
Lease Rate
$19.80 /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%
$1,395,440
Cap Rate 7%
$996,743
Cap Rate 9%
$775,244
Alternative Uses
Best Use
Healthcare Medical
$996.7K
$872.2K – $1.16M
NOI $69,772 @ 7.0% cap · market cap 5.37%
Second Best
Office B
$327.3K
$286.4K – $381.8K
NOI $22,910 @ 7.0% cap · market cap 1.76%
Theoretical Best
Specialty Retail
$1.25M
$1.09M – $1.45M
NOI $87,215 @ 7.0% cap · market cap 6.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
625
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48036, MI
22,517
Population
9,855
Households
2.3
Avg Household Size
41
Median Age
22%
College-Educated
93%
High-School Grad
8.3 sq mi
ZIP Area
2,713
Density / Sq Mi
$65,109
Median Household Income
$36,730
Median Earnings
$1,018
Median Rent
$201,000
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical/office building near hospitals with expansion potential.
Where is this medical office space located?
The property is located at 37244 S Groesbeck Hwy Clinton Twp, MI.
What is the asking price?
The asking price for this property is $1,299,900.
What are key features of this property?
This property features: Zoned for medical and general office use, located near McLaren Macomb and Henry Ford Macomb Hospitals.; High visibility location with a traffic count of 28,816 per day.; Large private parking lot for client convenience.
