Freestanding Commercial
For Sale
Contact for pricing
40696 Garfield Road, Clinton Township, MI 48038
Freestanding building for sale with land contract available and approximately 3,952 square feet.
Property Size3,952 SF
Price / SF$225.20
Days on Market53
Property Features for 40696 Garfield Road
General Information
Standard status
Active
Size
3,952 SF
Property subtype
Retail, Office, Special Purpose
Zoning
B-2
Lease Type
NNN
Building Details
Year Built
1993
Tenancy
Single
Listing Agency:
Pilot Property Group
Listed By:
Tony Cavataio · License #MI
(586) 291-6968
Source:
Crexi
Added: Jul 24
Changed: Sep 11
Last Checked: Sep 13 at 5:53AM
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 Pilot Property Group
Investment Insights
Based on property information with market context.
This freestanding commercial building is available for sale, and a land contract may be available for qualified buyers. The property totals approximately 3,952 square feet and offers a straightforward footprint suitable for a range of commercial uses that can be accommodated within the existing structure.
The building is located at 40696 Garfield Road in Clinton Township, Michigan 48038. Please contact the listing broker for additional details on the interior layout, condition, and any use considerations.
The building is located at 40696 Garfield Road in Clinton Township, Michigan 48038. Please contact the listing broker for additional details on the interior layout, condition, and any use considerations.
Key Highlights
- Freestanding building for sale with approximately 3,952 SF.
- Land contract available.
- Built in 1993.
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
$29,213
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
3.28%
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%
$584,260
$584.3K
Cap Rate 7%
$417,329
$417.3K
Cap Rate 9%
$324,589
$324.6K
Market Conditions
NOI Build-Up for 3,952 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
$47.4K $12.00/SF
− Vacancy
−$5.7K −$1.44/SF
EGI
$41.7K $10.56/SF
− OpEx
−$12.5K −$3.17/SF
NOI
$29.2K $7.39/SF
Area
Macomb County, MI
Vacancy
12.00%
Lease Rate
$12.00 /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%
$584,260
Cap Rate 7%
$417,329
Cap Rate 9%
$324,589
Alternative Uses
Best Use
Retail
$417.3K
$365.2K – $486.9K
NOI $29,213 @ 7.0% cap · market cap 3.28%
Second Best
Office B
$194.4K
$170.1K – $226.8K
NOI $13,605 @ 7.0% cap · market cap 1.53%
Theoretical Best
Specialty Retail
$739.9K
$647.4K – $863.2K
NOI $51,791 @ 7.0% cap · market cap 5.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
390
Businesses Nearby
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Business Placement
Demographics for 48038, MI
44,038
Population
21,395
Households
2.1
Avg Household Size
43
Median Age
29%
College-Educated
94%
High-School Grad
10.9 sq mi
ZIP Area
4,040
Density / Sq Mi
$78,684
Median Household Income
$44,811
Median Earnings
$1,255
Median Rent
$246,400
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Freestanding building for sale with land contract available and approximately 3,952 square feet.
Where is this office building located?
The property is located at 40696 Garfield Road Clinton Township, MI.
What is the asking price?
The asking price for this property is $890,000.
What are key features of this property?
This property features: Freestanding building for sale with approximately 3,952 SF.; Land contract available.; Built in 1993.
