Flex Space with Overhead
For Sale
Contact for pricing
517-523 W Nine Mile Road, Ferndale, MI 48220
CBD-zoned flex property with dual-address configuration and on-site parking.
Property Size3,574 SF
Price / SF$151.09
Days on Market207
Property Features for 517-523 W Nine Mile Road
General Information
Standard status
Active
Size
3,574 SF
Total Parking Spaces
8
Property subtype
Industrial, Mixed Use, Retail
Zoning
CBD (Central Business District)
Investment Type
Value Add
Building Details
Year Built
1926
Tenancy
Multi
Listing Agency:
The Jonna Group at Colliers International
(249) 540-1000
Listed By:
Simon Jonna · License #MI 6501357188
Source:
Crexi
Added: Feb 6
Changed: Aug 29
Last Checked: Aug 31 at 8:24PM
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 The Jonna Group at Colliers International
Investment Insights
Based on property information with market context.
This 3,574-square-foot flex property is arranged across two addresses, 517 and 523 W 9 Mile Rd, supporting separate occupancy or a multi-tenant layout. The building includes one 10-foot by 10-foot overhead door and eight surface parking spaces.
Located in a walkable downtown setting, the property is near dining, entertainment, and established neighborhoods. CBD zoning supports a broad range of potential uses. The property is offered for sale and may also accommodate repositioning or market-rate leasing strategies.
Located in a walkable downtown setting, the property is near dining, entertainment, and established neighborhoods. CBD zoning supports a broad range of potential uses. The property is offered for sale and may also accommodate repositioning or market-rate leasing strategies.
Key Highlights
- 3,574 SF flex property at 517‑523 W 9 Mile Rd
- Two addresses support separate occupancy or multi‑tenant configuration
- One 10’ x 10’ overhead door
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
$38,458
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
7.12%
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%
$769,160
$769.2K
Cap Rate 7%
$549,400
$549.4K
Cap Rate 9%
$427,311
$427.3K
Market Conditions
NOI Build-Up for 3,574 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
$60.0K $16.80/SF
− Vacancy
−$5.1K −$1.43/SF
EGI
$54.9K $15.37/SF
− OpEx
−$16.5K −$4.61/SF
NOI
$38.5K $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%
$769,160
Cap Rate 7%
$549,400
Cap Rate 9%
$427,311
Alternative Uses
Best Use
Retail
$549.4K
$480.7K – $641.0K
NOI $38,458 @ 7.0% cap · market cap 7.12%
Second Best
Flex RnD
$528.1K
$462.1K – $616.1K
NOI $36,965 @ 7.0% cap · market cap 6.85%
Theoretical Best
Specialty Retail
$770.9K
$674.5K – $899.4K
NOI $53,962 @ 7.0% cap · market cap 9.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,475
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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 Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Quarton Catering — 22020 Woodward Ave, Ferndale, MI 48220
- Got Pho — 172 W Nine Mile Rd, Ferndale, MI 48220
- Hero or Villain Deli: HQ — 22965 Woodward Ave, Ferndale, MI 48220
- Cappuccino Man — W Cambourne St, Ferndale, MI 48220
Frequently Asked Questions
What type of property is this?
Flex space - CBD-zoned flex property with dual-address configuration and on-site parking.
Where is this flex space located?
The property is located at 517-523 W Nine Mile Road Ferndale, MI.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: 3,574 SF flex property at 517‑523 W 9 Mile Rd; Two addresses support separate occupancy or multi‑tenant configuration; One 10’ x 10’ overhead door
