Central Business District Office
For Sale
Contact for pricing
440 E Congress St, Detroit, MI 48226
Large office building in Detroit’s CBD with B-6 zoning and access to I-75 within one mile.
Property Size85,539 SF
Price / SF$116.91
Days on Market172
Property Features for 440 E Congress St
General Information
Standard status
Active
Size
85,539 SF
Property subtype
OFFICE
Zoning
B-6
Additional Details
Highway Access
Yes
Listing Agency:
Avison Young | Detroit
(313) 209-4120
Listed By:
Robert Danforth
(313) 622-0159
Source:
Moodyscre
Added: Mar 29
Changed: Sep 6
Last Checked: Sep 15 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 Avison Young | Detroit
Investment Insights
Based on property information with market context.
Up to 85,539 square foot office building located in a B-6 zoning region of Detroit’s CBD. The property is presented as a repositioning and redevelopment opportunity and may also suit an office or medical office user seeking a lower replacement-cost alternative.
The building is less than one mile from the I-75 expressway, supporting convenient regional access for employees, patients, and visitors.
Offered for sale as a larger-format office asset with the flexibility associated with its CBD location and B-6 zoning designation.
The building is less than one mile from the I-75 expressway, supporting convenient regional access for employees, patients, and visitors.
Offered for sale as a larger-format office asset with the flexibility associated with its CBD location and B-6 zoning designation.
Key Highlights
- Up to 85,539 SF office building in Detroit’s CBD
- Located in a B‑6 zoning region
- Less than 1 mile from I‑75 expressway
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
$886,868
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
8.87%
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%
$17,737,360
$17.7M
Cap Rate 7%
$12,669,543
$12.7M
Cap Rate 9%
$9,854,089
$9.9M
Market Conditions
NOI Build-Up for 85,539 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
$1.64M $19.20/SF
− Vacancy
−$164.2K −$1.92/SF
EGI
$1.48M $17.28/SF
− OpEx
−$591.2K −$6.91/SF
NOI
$886.9K $10.37/SF
Area
Detroit, MI
Vacancy
10.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
40.00%
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%
$17,737,360
Cap Rate 7%
$12,669,543
Cap Rate 9%
$9,854,089
Alternative Uses
Best Use
Healthcare Medical
$12.67M
$11.09M – $14.78M
NOI $886,868 @ 7.0% cap · market cap 8.87%
Second Best
Office B
$12.38M
$10.83M – $14.44M
NOI $866,590 @ 7.0% cap · market cap 8.67%
Theoretical Best
Office A
$18.87M
$16.51M – $22.02M
NOI $1,320,917 @ 7.0% cap · market cap 13.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
5,321
Businesses Nearby
Explore this area
Business Placement
Demographics for 48226, MI
6,307
Population
5,160
Households
1.2
Avg Household Size
37
Median Age
53%
College-Educated
93%
High-School Grad
1.2 sq mi
ZIP Area
5,256
Density / Sq Mi
$69,813
Median Household Income
$60,957
Median Earnings
$1,714
Median Rent
$307,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Detroit, MI
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Frequently Asked Questions
What type of property is this?
Office building - Large office building in Detroit’s CBD with B-6 zoning and access to I-75 within one mile.
Where is this office building located?
The property is located at 440 E Congress St Detroit, MI.
What is the asking price?
The asking price for this property is $10,000,000.
What are key features of this property?
This property features: Up to 85,539 SF office building in Detroit’s CBD; Located in a B‑6 zoning region; Less than 1 mile from I‑75 expressway
