Turn-Key Licensed Dispensary with
For Sale
$1,499,000
5540 E 8 Mile Road, Detroit, MI 48091
Fully licensed, turnkey dispensary with secure reception, ample parking, and drive-through capability.
Property Size3,800 SF
Lot Size1.00 Acre
Price / SF$374.75
Days on Market69
Property Features for 5540 E 8 Mile Road
General Information
Standard status
Active
Size
3,800 SF
Lot size
1.00 Acre
Property subtype
Commercial
Zoning
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$1,315
Building Details
Building Size
3,800 SF
Year Built
1949
Listing Agency:
RE/MAX Leading Edge
(313) 995-2600
Listed By:
Sam Jaafar · License #6501379437
Source:
Buyatthelake
Added: Jun 17
Changed: Aug 23
Last Checked: Aug 23 at 11:37AM
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 RE/MAX Leading Edge
Investment Insights
Based on property information with market context.
This fully built-out, turn-key dispensary is offered as a ready-to-operate retail cannabis property with a professional interior finish. The building is approximately 4,000 square feet and includes decorative, top-quality materials throughout, ceramic marble floors, and strong lighting. A secure service reception area is built with state-of-the-art safety measures, supported by rest rooms and a large storage area to support daily operations.
The property sits on an approximately one-acre lot with ample parking in a newer cement parking area. A drive-through is available, supporting customer flow and convenient off-street parking for staff and visitors. The building is located at 5540 E 8 Mile Rd in Detroit, Michigan.
For buyers seeking an operating cannabis retail facility rather than a bare buildout, this configuration provides a functional mix of customer-facing service space, secure reception, and operational back-of-house support. The inclusion of a drive-through option and the on-site parking layout may help accommodate higher-volume service needs while keeping operations self-contained within the property.
The property sits on an approximately one-acre lot with ample parking in a newer cement parking area. A drive-through is available, supporting customer flow and convenient off-street parking for staff and visitors. The building is located at 5540 E 8 Mile Rd in Detroit, Michigan.
For buyers seeking an operating cannabis retail facility rather than a bare buildout, this configuration provides a functional mix of customer-facing service space, secure reception, and operational back-of-house support. The inclusion of a drive-through option and the on-site parking layout may help accommodate higher-volume service needs while keeping operations self-contained within the property.
Key Highlights
- Fully licensed dispensary with secure service reception area built with state‑of‑the‑art safety measures
- Approx. 4,000 SF dispensary building on an approx. 1‑acre lot
- New cement parking lot with ample parking
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
$49,268
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
3.29%
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%
$985,360
$985.4K
Cap Rate 7%
$703,829
$703.8K
Cap Rate 9%
$547,422
$547.4K
Market Conditions
NOI Build-Up for 4,000 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
$74.4K $18.60/SF
− Vacancy
−$4.0K −$1.00/SF
EGI
$70.4K $17.60/SF
− OpEx
−$21.1K −$5.28/SF
NOI
$49.3K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$985,360
Cap Rate 7%
$703,829
Cap Rate 9%
$547,422
Alternative Uses
Best Use
Retail
$703.8K
$615.9K – $821.1K
NOI $49,268 @ 7.0% cap · market cap 3.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$882.4K
$772.1K – $1.03M
NOI $61,769 @ 7.0% cap · market cap 4.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
531
Businesses Nearby
9k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 54%
Shops & Services 46%
Marathon
Shops & Services
4,226 visits/mo
0.4 miles
Dairy Queen
Dining
3,571 visits/mo
0.4 miles
Tubby's
Dining
1,413 visits/mo
0.5 miles
Demographics for 48091, MI
32,267
Population
12,919
Households
2.5
Avg Household Size
37
Median Age
17%
College-Educated
82%
High-School Grad
7.9 sq mi
ZIP Area
4,084
Density / Sq Mi
$53,400
Median Household Income
$31,877
Median Earnings
$1,231
Median Rent
$138,700
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Cannabis property - Fully licensed, turnkey dispensary with secure reception, ample parking, and drive-through capability.
Where is this cannabis property located?
The property is located at 5540 E 8 Mile Road Detroit, MI.
What is the asking price?
The asking price for this property is $1,499,000.
What are key features of this property?
This property features: Fully licensed dispensary with secure service reception area built with state‑of‑the‑art safety measures; Approx. 4,000 SF dispensary building on an approx. 1‑acre lot; New cement parking lot with ample parking
