Well-Maintained Building on Grand
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40350 Grand River Avenue, Novi, MI 48375
Extremely well-maintained building with frontage on Grand River Avenue.
Property Size11,050 SF
Price / SF$199.10
Days on Market365
Property Features for 40350 Grand River Avenue
General Information
Standard status
Active
Size
11,050 SF
Total Parking Spaces
28
Property subtype
Office, Industrial
Zoning
Light Industrial
Building Details
Year Built
1996
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Signature Associates
Listed By:
Jeff Lemanski · License #MI
Source:
Crexi
Added: Aug 21, 2025
Changed: Aug 14
Last Checked: Aug 19 at 4:12PM
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 Signature Associates
Investment Insights
Based on property information with market context.
This well-maintained building features frontage on Grand River Avenue. The office area includes two executive offices with restrooms, three private offices, a lunchroom, and an open area. There are also two restrooms and 9-foot ceilings in the office space. The warehouse portion of the building includes a 12'x14' grade-level door, an enclosed shipping area, painted walls and floors, LED lighting, and radiant tube heating. The property offers the potential to add a truck well and/or additional parking. The property size is 11,050 square feet.
Key Highlights
- Grand River Avenue frontage offers high visibility and accessibility.
- Well‑maintained building suitable for immediate occupancy.
- Functional office space includes executive offices, private offices, lunchroom 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
$114,288
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
5.19%
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%
$2,285,760
$2.3M
Cap Rate 7%
$1,632,686
$1.6M
Cap Rate 9%
$1,269,867
$1.3M
Market Conditions
NOI Build-Up for 11,050 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
$198.9K $18.00/SF
− Vacancy
−$23.1K −$2.09/SF
EGI
$175.8K $15.91/SF
− OpEx
−$61.5K −$5.57/SF
NOI
$114.3K $10.34/SF
Area
Oakland County, MI
Vacancy
11.60%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
35.00%
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%
$2,285,760
Cap Rate 7%
$1,632,686
Cap Rate 9%
$1,269,867
Alternative Uses
Best Use
Flex RnD
$1.63M
$1.43M – $1.90M
NOI $114,288 @ 7.0% cap · market cap 5.19%
Second Best
Industrial
$782.1K
$684.4K – $912.5K
NOI $54,749 @ 7.0% cap · market cap 2.49%
Theoretical Best
Specialty Retail
$2.38M
$2.09M – $2.78M
NOI $166,837 @ 7.0% cap · market cap 7.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
883
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48375, MI
23,237
Population
10,223
Households
2.3
Avg Household Size
40
Median Age
63%
College-Educated
98%
High-School Grad
8.4 sq mi
ZIP Area
2,766
Density / Sq Mi
$112,978
Median Household Income
$70,326
Median Earnings
$1,880
Median Rent
$348,900
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - Extremely well-maintained building with frontage on Grand River Avenue.
Where is this flex space located?
The property is located at 40350 Grand River Avenue Novi, MI.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Grand River Avenue frontage offers **high visibility and accessibility**.; Well‑maintained building suitable for immediate occupancy.; Functional office space includes executive offices, private offices, lunchroom and open area.
