Wholesale Warehouse and Supply
For Sale
Contact for pricing
3774 Joy RD, Detroit, MI 48206
Warm, dry warehouse space suited for wholesale distribution tied to electrical supplies and lighting fixtures.
Property Size7,350 SF
Price / SF$228.57
Days on Market623
Property Features for 3774 Joy RD
General Information
Standard status
Active
Size
7,350 SF
Property subtype
Business for Sale
Building Details
Year Built
1950
Listing Agency:
Herbert J Hill Realty Real Estate Master
Listed By:
Herbert Hill · License #MI
Source:
Crexi
Added: Nov 22, 2024
Changed: Jul 10
Last Checked: Aug 6 at 12:21PM
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 Herbert J Hill Realty Real Estate Master
Investment Insights
Based on property information with market context.
The property is offered for sale as a warehouse and supply facility associated with Annex Electrical Supply Company, handling wholesale electrical supplies and lighting fixtures. The building includes approximately 7,500 square feet of warehouse space described as warm and dry. The structure is reported to be well maintained.
The facility is located at 3774 Joy Rd. in Detroit, Michigan. The remarks indicate the company has been established since 1940 and that the location was built about ten years later, with the building’s ground location described as a long-running base for servicing electricians in the metropolitan Detroit area.
For buyers or operators seeking a ready-to-use warehouse setting for wholesale distribution, the combination of warm, dry storage and a well-maintained structure supports day-to-day handling of inventory. The property’s long-standing connection to electrical supplies and lighting fixture wholesale may also appeal to an operator looking for continuity in an established niche. For further details on layout, inclusions, or operating history, please contact the listing agent.
The facility is located at 3774 Joy Rd. in Detroit, Michigan. The remarks indicate the company has been established since 1940 and that the location was built about ten years later, with the building’s ground location described as a long-running base for servicing electricians in the metropolitan Detroit area.
For buyers or operators seeking a ready-to-use warehouse setting for wholesale distribution, the combination of warm, dry storage and a well-maintained structure supports day-to-day handling of inventory. The property’s long-standing connection to electrical supplies and lighting fixture wholesale may also appeal to an operator looking for continuity in an established niche. For further details on layout, inclusions, or operating history, please contact the listing agent.
Key Highlights
- Warehouse building built in 1950 at 3774 Joy Rd., Detroit, MI 48206
- Total warehouse space: 7,500 sq. ft.
- Warm, dry warehouse space for wholesale distribution of electrical supplies and lighting fixtures
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
$52,375
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
3.12%
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%
$1,047,500
$1.0M
Cap Rate 7%
$748,214
$748.2K
Cap Rate 9%
$581,944
$581.9K
Market Conditions
NOI Build-Up for 7,350 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
$64.4K $8.76/SF
− Vacancy
−$2.8K −$0.38/SF
EGI
$61.6K $8.38/SF
− OpEx
−$9.2K −$1.26/SF
NOI
$52.4K $7.13/SF
Area
Detroit, MI
Vacancy
4.30%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
15.00%
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%
$1,047,500
Cap Rate 7%
$748,214
Cap Rate 9%
$581,944
Alternative Uses
Best Use
Warehouse
$748.2K
$654.7K – $872.9K
NOI $52,375 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.62M
$1.42M – $1.89M
NOI $113,501 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
322
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48206, MI
15,712
Population
10,784
Households
1.5
Avg Household Size
38
Median Age
24%
College-Educated
89%
High-School Grad
3.1 sq mi
ZIP Area
5,068
Density / Sq Mi
$43,702
Median Household Income
$36,674
Median Earnings
$923
Median Rent
$102,300
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Warm, dry warehouse space suited for wholesale distribution tied to electrical supplies and lighting fixtures.
Where is this warehouse located?
The property is located at 3774 Joy RD Detroit, MI.
What is the asking price?
The asking price for this property is $1,680,000.
What are key features of this property?
This property features: Warehouse building built in 1950 at 3774 Joy Rd., Detroit, MI 48206; Total warehouse space: 7,500 sq. ft.; Warm, dry warehouse space for wholesale distribution of electrical supplies and lighting fixtures
