Royal Oak Medical Building
For Sale
Contact for pricing
5130 Coolidge Hwy, Royal Oak, MI 48073
Prime location medical building with redevelopment potential in Royal Oak.
Property Size8,630 SF
Price / SF$260.72
Days on Market178
Property Features for 5130 Coolidge Hwy
General Information
Standard status
Active
Size
8,630 SF
Class
B
Property subtype
Office
Zoning
GEN BUS
Building Details
Year Built
1977
Listing Agency:
Encore Real Estate Investment Services
(248) 702-0288
Listed By:
Noah Dalaly · License #MI 6501452772
Source:
Crexi
Added: Feb 23
Changed: Aug 8
Last Checked: Jul 24 at 11:23AM
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 Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
This soon-to-be vacant medical building is located in Royal Oak, Michigan. The property is an outparcel to Meijer, a characteristic that enhances long-term visibility, access, and redevelopment potential. The site supports multiple strategic use cases due to strong surrounding retail synergy, excellent traffic drivers, and a desirable demographic profile. The offering presents an opportunity for developers seeking land and owner-users looking to establish a new home for their medical practice. The property is currently configured with one tenant with a lease expiring in 2026. The property size is 8630 square feet.
Key Highlights
- Prime Royal Oak location as an outparcel to Meijer.
- Rare Meijer outparcel with enhanced visibility, access, and redevelopment potential.
- Suitable for both developers and owner‑users (medical practice).
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
$116,785
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
5.19%
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%
$2,335,700
$2.3M
Cap Rate 7%
$1,668,357
$1.7M
Cap Rate 9%
$1,297,611
$1.3M
Market Conditions
NOI Build-Up for 8,630 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
$217.5K $25.20/SF
− Vacancy
−$22.8K −$2.65/SF
EGI
$194.6K $22.55/SF
− OpEx
−$77.9K −$9.02/SF
NOI
$116.8K $13.53/SF
Area
Oakland County, MI
Vacancy
10.50%
Lease Rate
$25.20 /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%
$2,335,700
Cap Rate 7%
$1,668,357
Cap Rate 9%
$1,297,611
Alternative Uses
Best Use
Healthcare Medical
$1.67M
$1.46M – $1.95M
NOI $116,785 @ 7.0% cap · market cap 5.19%
Second Best
Office B
$424.4K
$371.4K – $495.2K
NOI $29,709 @ 7.0% cap · market cap 1.32%
Theoretical Best
Specialty Retail
$1.86M
$1.63M – $2.17M
NOI $130,299 @ 7.0% cap · market cap 5.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,002
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48073, MI
33,658
Population
17,551
Households
1.9
Avg Household Size
39
Median Age
59%
College-Educated
97%
High-School Grad
7.4 sq mi
ZIP Area
4,548
Density / Sq Mi
$86,426
Median Household Income
$58,525
Median Earnings
$1,245
Median Rent
$302,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Petco Vaccination Clinic — 1217 Coolidge Hwy, Troy, MI 48084
- Royal Oak Veterinarian — 4902 Delemere Ave, Royal Oak, MI 48073
- Burrwood Veterinary — 4245 W 14 Mile Rd, Royal Oak, MI 48073
- VetIQ Petcare — 5150 Coolidge Hwy, Royal Oak, MI 48073
Frequently Asked Questions
What type of property is this?
Medical Office Space - Prime location medical building with redevelopment potential in Royal Oak.
Where is this medical office space located?
The property is located at 5130 Coolidge Hwy Royal Oak, MI.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Prime Royal Oak location as an outparcel to Meijer.; Rare Meijer outparcel with enhanced visibility, access, and redevelopment potential.; Suitable for both developers and owner‑users (medical practice).
