Renovated Flex
New
For Sale
$429,000
3805 E McNichols Rd, Detroit, MI 48212
Separate metering and adaptable configuration support owner-user or multi-tenant operations.
Property Size6,964 SF
Days on Market2
Property Features for 3805 E McNichols Rd
General Information
Standard status
Active
Size
6,964 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,542
Building Details
Building Size
6,964 SF
Year Built
1930
Listing Agency:
Keller Williams Legacy
(313) 752-0000
Listed By:
Ali Nasser · License #443119
(313) 752-0000
Source:
Elliman
Added: Aug 12
Changed: Aug 13
Last Checked: Aug 13 at 5:34AM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
This 6,964 SF flex building, constructed in 1930, is arranged as three separately metered units. Unit 1 contains approximately 3,500 SF with a 10-ton HVAC system, while Units 2 and 3 each provide approximately 1,200 SF with individual 5-ton HVAC systems. A removed partition currently creates a larger open retail area, and the wall can be reinstalled to restore the prior separation. Improvements include a new tear-off metal roof, replacement plumbing, upgraded three-phase electrical service, and separate HVAC systems.
The property is located at 3805 E McNichols Rd in Detroit, at the corner of Conant Street and McNichols, along the Detroit/Hamtramck corridor. It is currently operating as a liquidation center and offers a configuration suited to retail, showroom, office, specialty use, or multiple-tenant operations.
The property is located at 3805 E McNichols Rd in Detroit, at the corner of Conant Street and McNichols, along the Detroit/Hamtramck corridor. It is currently operating as a liquidation center and offers a configuration suited to retail, showroom, office, specialty use, or multiple-tenant operations.
Key Highlights
- 6,964 SF flex building with three separately metered units
- Unit 1: approximately 3,500 SF with a 10‑ton HVAC system
- Units 2 and 3: approximately 1,200 SF each with individual 5‑ton HVAC systems
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
$33,871
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
7.90%
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%
$677,420
$677.4K
Cap Rate 7%
$483,871
$483.9K
Cap Rate 9%
$376,344
$376.3K
Market Conditions
NOI Build-Up for 6,964 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
$51.0K $7.32/SF
− Vacancy
−$2.6K −$0.37/SF
EGI
$48.4K $6.95/SF
− OpEx
−$14.5K −$2.08/SF
NOI
$33.9K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$677,420
Cap Rate 7%
$483,871
Cap Rate 9%
$376,344
Alternative Uses
Best Use
Retail
$1.23M
$1.07M – $1.43M
NOI $85,775 @ 7.0% cap · market cap 19.99%
Second Best
Flex RnD
$713.9K
$624.7K – $832.9K
NOI $49,974 @ 7.0% cap · market cap 11.65%
Theoretical Best
Office A
$1.54M
$1.34M – $1.79M
NOI $107,540 @ 7.0% cap · market cap 25.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
295
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48212, MI
43,192
Population
14,739
Households
2.9
Avg Household Size
29
Median Age
16%
College-Educated
68%
High-School Grad
5.3 sq mi
ZIP Area
8,149
Density / Sq Mi
$37,293
Median Household Income
$28,894
Median Earnings
$935
Median Rent
$98,200
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?
Flex space - Separate metering and adaptable configuration support owner-user or multi-tenant operations.
Where is this flex space located?
The property is located at 3805 E McNichols Rd Detroit, MI.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: 6,964 SF flex building with three separately metered units; Unit 1: approximately 3,500 SF with a 10‑ton HVAC system; Units 2 and 3: approximately 1,200 SF each with individual 5‑ton HVAC systems
