Established Storefront
For Sale
$175,000
466 W 8 Mile Rd, Farmington Hills, MI 48220
Built in 1950, this commercial storefront is located along W 8 Mile Rd in Farmington Hills.
Property Size1,050 SF
Days on Market8
Property Features for 466 W 8 Mile Rd
General Information
Standard status
Active
Size
1,050 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$3,045
Building Details
Building Size
1,050 SF
Year Built
1950
Listing Agency:
Prime Financial Plus Realty
Listed By:
Pamela B Samuel · License #6501123434
(313) 784-1267
Source:
Elliman
Added: Sep 6
Last Checked: Sep 13 at 8:04AM
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 Prime Financial Plus Realty
Investment Insights
Based on property information with market context.
This storefront property at 466 W 8 Mile Rd in Farmington Hills, Michigan, was built in 1950. The asset is classified as a storefront property and is offered for sale.
The property carries a Walk Score of 33, identified as Car-Dependent, and a Bike Score of 36, identified as Somewhat Bikeable. Its location is within the 48220 ZIP code.
The property carries a Walk Score of 33, identified as Car-Dependent, and a Bike Score of 36, identified as Somewhat Bikeable. Its location is within the 48220 ZIP code.
Key Highlights
- Storefront property built in 1950
- Located at 466 W 8 Mile Rd, Farmington Hills, MI 48220
- Walk Score: 33, Car‑Dependent
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
$11,298
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
6.46%
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%
$225,960
$226.0K
Cap Rate 7%
$161,400
$161.4K
Cap Rate 9%
$125,533
$125.5K
Market Conditions
NOI Build-Up for 1,050 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
$17.6K $16.80/SF
− Vacancy
−$1.5K −$1.43/SF
EGI
$16.1K $15.37/SF
− OpEx
−$4.8K −$4.61/SF
NOI
$11.3K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$225,960
Cap Rate 7%
$161,400
Cap Rate 9%
$125,533
Alternative Uses
Best Use
Retail
$161.4K
$141.2K – $188.3K
NOI $11,298 @ 7.0% cap · market cap 6.46%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$226.5K
$198.2K – $264.2K
NOI $15,853 @ 7.0% cap · market cap 9.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
874
Businesses Nearby
96k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 76%
Shops & Services 22%
Electronics 2%
McDonald's
Dining
20,145 visits/mo
0.4 miles
Taco Bell
Dining
15,672 visits/mo
0.2 miles
White Castle
Dining
13,051 visits/mo
0.3 miles
Wendy's
Dining
11,264 visits/mo
0.1 miles
KFC
Dining
7,635 visits/mo
0.4 miles
Demographics for 48220, MI
21,564
Population
12,003
Households
1.8
Avg Household Size
37
Median Age
53%
College-Educated
96%
High-School Grad
4.4 sq mi
ZIP Area
4,901
Density / Sq Mi
$86,095
Median Household Income
$54,557
Median Earnings
$1,191
Median Rent
$229,700
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Built in 1950, this commercial storefront is located along W 8 Mile Rd in Farmington Hills.
Where is this storefront property located?
The property is located at 466 W 8 Mile Rd Farmington Hills, MI.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: Storefront property built in 1950; Located at 466 W 8 Mile Rd, Farmington Hills, MI 48220; Walk Score: 33, Car‑Dependent
