Office Building with Rear
New
For Sale
$895,000
3800 12 Mile Rd, Berkley, MI 48072
Office and retail layout with rear parking, a loading dock, and a 2024 roof replacement.
Property Size6,814 SF
Price / SF$131.35
Days on Market3
Property Features for 3800 12 Mile Rd
General Information
Standard status
Active
Size
6,814 SF
Class
C
Property subtype
Office
Building Details
Building Size
6,814 SF
Year Built
1970
Listing Agency:
Thomas A. Duke Company
Listed By:
Andrew Battersby · License #6501384188
(248) 631-8085
Source:
Thomasduke
Added: Sep 18
Changed: Sep 20
Last Checked: Sep 20 at 6:24AM
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 Thomas A. Duke Company
Investment Insights
Based on property information with market context.
The 6,814-SF property combines office and retail space within a building constructed in 1970. A warehouse area and loading dock are located at the rear, with a large parking field behind the building. The roof was replaced in 2024.
Positioned at a signalized intersection at 3800 12 Mile Rd in Berkley, MI, the property offers an office-oriented commercial configuration with supporting retail and warehouse components.
Positioned at a signalized intersection at 3800 12 Mile Rd in Berkley, MI, the property offers an office-oriented commercial configuration with supporting retail and warehouse components.
Key Highlights
- 6,814 SF office and retail property
- Rear warehouse area with loading dock
- Roof replaced in 2024
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
$73,321
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
8.19%
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%
$1,466,420
$1.5M
Cap Rate 7%
$1,047,443
$1.0M
Cap Rate 9%
$814,678
$814.7K
Market Conditions
NOI Build-Up for 6,814 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
$114.5K $16.80/SF
− Vacancy
−$9.7K −$1.43/SF
EGI
$104.7K $15.37/SF
− OpEx
−$31.4K −$4.61/SF
NOI
$73.3K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$1,466,420
Cap Rate 7%
$1,047,443
Cap Rate 9%
$814,678
Alternative Uses
Best Use
Retail
$1.05M
$916.5K – $1.22M
NOI $73,321 @ 7.0% cap · market cap 8.19%
Second Best
Warehouse
$585.6K
$512.4K – $683.3K
NOI $40,995 @ 7.0% cap · market cap 4.58%
Theoretical Best
Specialty Retail
$1.47M
$1.29M – $1.71M
NOI $102,880 @ 7.0% cap · market cap 11.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
773
Businesses Nearby
Explore this area
Business Placement
Demographics for 48072, MI
15,194
Population
7,068
Households
2.1
Avg Household Size
38
Median Age
58%
College-Educated
99%
High-School Grad
2.4 sq mi
ZIP Area
6,331
Density / Sq Mi
$113,103
Median Household Income
$68,818
Median Earnings
$1,436
Median Rent
$289,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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?
Office units - Office and retail layout with rear parking, a loading dock, and a 2024 roof replacement.
Where is this office units located?
The property is located at 3800 12 Mile Rd Berkley, MI.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: 6,814 SF office and retail property; Rear warehouse area with loading dock; Roof replaced in 2024
