Mixed-Use Building with Residential
For Sale
$1,900,000
512 N Main St, Royal Oak, MI 48067
Updated property combining retail, office, and residential loft space in downtown Royal Oak.
Property Size10,279 SF
Price / SF$184.84
Days on Market323
Property Features for 512 N Main St
General Information
Standard status
Active
Size
10,279 SF
Class
C
Total Parking Spaces
10
Property subtype
Office, Retail
Zoning
NB
Additional Details
Frontage
97 ft
Building Details
Building Size
10,279 SF
Year Built
1924
Buildings
1
Listing Agency:
Signature Associates - Southfield
(248) 359-3837
Listed By:
Peter Vanderkaay · License #6501388318
(248) 359-3837
Source:
Cpix.resimplifi
Added: Oct 13, 2025
Changed: Aug 29
Last Checked: Aug 29 at 5:36PM
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 - Southfield
Investment Insights
Based on property information with market context.
This mixed-use building brings together retail space, office areas, and two residential lofts within a substantially updated property. The improvements include modern amenities, while the building’s original construction dates to 1924. The configuration supports a blend of commercial and residential occupancy within one asset.
Positioned on Main Street in downtown Royal Oak, the property provides 97 feet of frontage and includes 10 on-site parking spaces. Additional street parking is available. The property is identified as NB zoning and is located at 512 N. Main St.
Positioned on Main Street in downtown Royal Oak, the property provides 97 feet of frontage and includes 10 on-site parking spaces. Additional street parking is available. The property is identified as NB zoning and is located at 512 N. Main St.
Key Highlights
- Mixed‑use configuration with retail, office, and 2 residential lofts
- 97' of frontage on Main Street
- 10 on‑site parking spaces plus street parking availability
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
$110,606
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%
$2,212,120
$2.2M
Cap Rate 7%
$1,580,086
$1.6M
Cap Rate 9%
$1,228,956
$1.2M
Market Conditions
NOI Build-Up for 10,279 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
$172.7K $16.80/SF
− Vacancy
−$14.7K −$1.43/SF
EGI
$158.0K $15.37/SF
− OpEx
−$47.4K −$4.61/SF
NOI
$110.6K $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%
$2,212,120
Cap Rate 7%
$1,580,086
Cap Rate 9%
$1,228,956
Alternative Uses
Best Use
Retail
$1.58M
$1.38M – $1.84M
NOI $110,606 @ 7.0% cap · market cap 5.82%
Second Best
Mixed Use
$1.49M
$1.30M – $1.73M
NOI $104,075 @ 7.0% cap · market cap 5.48%
Theoretical Best
Specialty Retail
$2.22M
$1.94M – $2.59M
NOI $155,196 @ 7.0% cap · market cap 8.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,380
Businesses Nearby
Explore this area
Business Placement
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
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?
Mixed-use property - Updated property combining retail, office, and residential loft space in downtown Royal Oak.
Where is this mixed-use property located?
The property is located at 512 N Main St Royal Oak, MI.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Mixed‑use configuration with retail, office, and 2 residential lofts; 97' of frontage on Main Street; 10 on‑site parking spaces plus street parking availability
