Remodeled Medical Office
For Sale
Contact for pricing
37325 W 12 Mile Rd., Farmington Hills, MI 48331
Multi-level office configuration combines reception, private rooms, kitchenette, storage, and unfinished areas.
Property Size5,989 SF
Price / SF$212.06
Days on Market122
Property Features for 37325 W 12 Mile Rd.
General Information
Standard status
Active
Size
5,989 SF
Class
C
Total Parking Spaces
22
Property subtype
Office
Zoning
OS-2 / Planned Office Service
Investment Type
Owner/User
Additional Details
Office Units
1
Amenities
building signage
monument signage
Building Details
Year Built
1984
Year Renovated
2014
Buildings
1
Stories
2
Units
22
Building Size
5,989 SF
Tenancy
Single
Parking Ratio
3.67 per 1,000 SF
Listing Agency:
RE/MAX Commercial Connection
Listed By:
Valerie Kemp · License #6501324315
(248) 535-8073
Source:
Crexi
Added: May 4
Changed: Sep 2
Last Checked: Aug 31 at 11:11PM
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 RE/MAX Commercial Connection
Investment Insights
Based on property information with market context.
This 5,989-square-foot medical office property at 37325 W. 12 Mile Rd. in Farmington Hills includes three levels of office and support space. The 2,642-square-foot first floor has a waiting and reception area, up to 10 private rooms, a bathroom, and an open area. A second 2,642-square-foot office level, reached by two stairways, contains four rooms, a kitchenette, bathroom, utility and storage space, plus unfinished area. The 705-square-foot second floor is unfinished open space.
Constructed in 1984 and remodeled in 2014, the building offers 22 parking spaces at a ratio of 3.67 per 1,000 square feet. Building and monument signage are available, and the property is zoned OS-2 / Planned Office Service. The site records 9,699 cars daily and is positioned in Farmington Hills within Detroit’s westerly suburbs.
Constructed in 1984 and remodeled in 2014, the building offers 22 parking spaces at a ratio of 3.67 per 1,000 square feet. Building and monument signage are available, and the property is zoned OS-2 / Planned Office Service. The site records 9,699 cars daily and is positioned in Farmington Hills within Detroit’s westerly suburbs.
Key Highlights
- 5,989‑square‑foot medical office building at 37325 W. 12 Mile Rd., Farmington Hills, MI 48331
- Built in 1984 and remodeled in 2014
- First floor measures 2,642 sq. ft. with reception, waiting area, up to 10 private rooms, bathroom, and open area
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
$81,046
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
6.38%
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%
$1,620,920
$1.6M
Cap Rate 7%
$1,157,800
$1.2M
Cap Rate 9%
$900,511
$900.5K
Market Conditions
NOI Build-Up for 5,989 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
$150.9K $25.20/SF
− Vacancy
−$15.8K −$2.65/SF
EGI
$135.1K $22.55/SF
− OpEx
−$54.0K −$9.02/SF
NOI
$81.0K $13.53/SF
Area
Oakland County, MI
Vacancy
10.50%
Lease Rate
$25.20 /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%
$1,620,920
Cap Rate 7%
$1,157,800
Cap Rate 9%
$900,511
Alternative Uses
Best Use
Healthcare Medical
$1.16M
$1.01M – $1.35M
NOI $81,046 @ 7.0% cap · market cap 6.38%
Second Best
Office B
$294.5K
$257.7K – $343.6K
NOI $20,617 @ 7.0% cap · market cap 1.62%
Theoretical Best
Specialty Retail
$1.29M
$1.13M – $1.51M
NOI $90,424 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
438
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48331, MI
22,091
Population
9,297
Households
2.4
Avg Household Size
46
Median Age
67%
College-Educated
97%
High-School Grad
9.3 sq mi
ZIP Area
2,375
Density / Sq Mi
$121,101
Median Household Income
$64,255
Median Earnings
$1,743
Median Rent
$383,200
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 - Multi-level office configuration combines reception, private rooms, kitchenette, storage, and unfinished areas.
Where is this medical office space located?
The property is located at 37325 W 12 Mile Rd. Farmington Hills, MI.
What is the asking price?
The asking price for this property is $1,270,000.
What are key features of this property?
This property features: 5,989‑square‑foot medical office building at 37325 W. 12 Mile Rd., Farmington Hills, MI 48331; Built in 1984 and remodeled in 2014; First floor measures 2,642 sq. ft. with reception, waiting area, up to 10 private rooms, bathroom, and open area
