Royal Oak Mixed-Use
For Sale
$499,000
520 11 Mile Rd, Royal Oak, MI
Two buildings in prime location near downtown Royal Oak.
Property Size1,954 SF
Price / SF$255.37
Days on Market194
Property Features for 520 11 Mile Rd
General Information
Standard status
Active
Size
1,954 SF
Taxes and HOA fees
Annual Taxes
$10,703
Listing Agency:
EXP Realty Birmingham
(248) 935-2754
Listed By:
Paul Mychalowych · License #6506042081
(248) 935-2754
Source:
Exprealty
Added: Feb 11
Changed: Aug 23
Last Checked: Aug 23 at 8:10AM
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 EXP Realty Birmingham
Investment Insights
Based on property information with market context.
Located on E 11 Mile in Royal Oak, this property is within walking distance of Downtown Royal Oak and the Royal Oak Farmers Market. The property features two separate buildings on one parcel, with approximately 10 private parking spaces in the rear. The rear building has a residential-style layout and is being prepared for short-term rental use. The property is commercially zoned, and buyers should verify permitted uses with the City of Royal Oak. One building could be used for business operations while the other is utilized for additional income or complementary use. The front building includes updated office space with granite counters, a bathroom, a newer rubber roof (2022), and a boiler (2023). It could also be used as a coffee shop with possible drive-thru window service on the east side of the building. The buildings may be separately leased or combined for a single operation. The property offers excellent visibility, walkability, and a versatile layout in a desirable Royal Oak corridor. The bike score is 69, indicating it is bikeable, and the walk score is 85, indicating it is very walkable.
Key Highlights
- Prime Royal Oak location, walk to Downtown Royal Oak & Farmers Market.
- Two separate buildings on one parcel with approximately 10 private parking spaces.
- Commercially zoned for diverse uses (buyer to verify with City of Royal Oak).
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
$19,784
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
3.96%
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%
$395,680
$395.7K
Cap Rate 7%
$282,629
$282.6K
Cap Rate 9%
$219,822
$219.8K
Market Conditions
NOI Build-Up for 1,954 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
$35.2K $18.00/SF
− Vacancy
−$3.5K −$1.80/SF
EGI
$31.7K $16.20/SF
− OpEx
−$11.9K −$6.07/SF
NOI
$19.8K $10.13/SF
Area
Oakland County, MI
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$395,680
Cap Rate 7%
$282,629
Cap Rate 9%
$219,822
Alternative Uses
Best Use
Mixed Use
$282.6K
$247.3K – $329.7K
NOI $19,784 @ 7.0% cap · market cap 3.96%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$421.5K
$368.8K – $491.7K
NOI $29,502 @ 7.0% cap · market cap 5.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
656
Businesses Nearby
Explore this area
Business Placement
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two buildings in prime location near downtown Royal Oak.
Where is this mixed-use property located?
The property is located at 520 11 Mile Rd Royal Oak, MI.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: Prime Royal Oak location, walk to Downtown Royal Oak & Farmers Market.; Two separate buildings on one parcel with approximately 10 private parking spaces.; Commercially zoned for diverse uses (buyer to verify with City of Royal Oak).
