Sterling Heights Professional Office
For Sale
$950,000
42301 Mound Rd, Sterling Heights, MI 48314
Custom-built office building in high-traffic Sterling Heights location.
Property Size2,400 SF
Lot Size0.62 Acres
Price / SF$198.29
Days on Market152
Property Features for 42301 Mound Rd
General Information
Standard status
Active
Size
2,400 SF
Lot size
0.62 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$28,533
Building Details
Building Size
2,400 SF
Year Built
2017
Listing Agency:
Keller Williams Paint Creek
(586) 663-0473
Listed By:
Evan Bassy
(586) 663-0473
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:22AM
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 Paint Creek
Investment Insights
Based on property information with market context.
This custom-built professional building, completed in 2017, is located in a high-traffic area of Sterling Heights. The stand-alone office building contains 4,791 square feet of space. The building is suitable for medical, legal, wellness, or corporate professionals. The layout adapts to various professional needs, including patient consultations, team operations, or private meeting areas. The property features a fully finished lower level with elevator access. The building is positioned along Mound Road, with an estimated 35,000+ vehicles passing by daily. The property offers exposure and signage potential, along with on-site parking and curb appeal. It is designed to support business growth.
Key Highlights
- High‑traffic location on Mound Road with 35,000+ vehicles passing daily, providing exceptional visibility.
- Custom‑built in 2017 with 4,791 sq ft of thoughtfully designed space suitable for various professional uses.
- Fully finished lower level with elevator access, ensuring seamless accessibility for all.
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
$55,336
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
5.82%
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%
$1,106,720
$1.1M
Cap Rate 7%
$790,514
$790.5K
Cap Rate 9%
$614,844
$614.8K
Market Conditions
NOI Build-Up for 4,791 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
$83.9K $17.52/SF
− Vacancy
−$10.2K −$2.12/SF
EGI
$73.8K $15.40/SF
− OpEx
−$18.4K −$3.85/SF
NOI
$55.3K $11.55/SF
Area
Sterling Heights, MI
Vacancy
12.10%
Lease Rate
$17.52 /SF/Yr
Expense Ratio
25.00%
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%
$1,106,720
Cap Rate 7%
$790,514
Cap Rate 9%
$614,844
Alternative Uses
Best Use
Office B
$790.5K
$691.7K – $922.3K
NOI $55,336 @ 7.0% cap · market cap 5.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.06M
$924.8K – $1.23M
NOI $73,984 @ 7.0% cap · market cap 7.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
309
Businesses Nearby
Explore this area
Business Placement
Demographics for 48314, MI
21,614
Population
9,286
Households
2.3
Avg Household Size
44
Median Age
36%
College-Educated
91%
High-School Grad
7.8 sq mi
ZIP Area
2,771
Density / Sq Mi
$80,383
Median Household Income
$46,481
Median Earnings
$1,397
Median Rent
$309,700
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Custom-built office building in high-traffic Sterling Heights location.
Where is this office building located?
The property is located at 42301 Mound Rd Sterling Heights, MI.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: High‑traffic location on Mound Road with 35,000+ vehicles passing daily, providing exceptional visibility.; Custom‑built in 2017 with 4,791 sq ft of thoughtfully designed space suitable for various professional uses.; Fully finished lower level with elevator access, ensuring seamless accessibility for all.
