Multi-Unit Office
For Sale
$425,000
5685 Highland Road, Waterford, MI 48327
COMMERCIAL - Waterford, MI
Property Size3,714 SF
Lot Size0.48 Acres
Price / SF$114.43
Days on Market422
Property Features for 5685 Highland Road
General Information
Property type
Commercial Sale
Property subtype
Office
Bathrooms
4
Full bathrooms
4
Rooms
Bathroom 1, Bathroom 4, Bathroom 2, Bathroom 3
Elementary school district
Waterford
Middle school district
Waterford
High school district
Waterford
Directions
The property is located on Highland Road (M-59) between Crescent Lake Road and Airport Road.
Subdivision
Oakland County - 70
Standard status
Active
APN
13-21-127-001
Size
3,714 SF
Lot size
0.48 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
T3N, R9E, SEC 21 HIGHLAND ESTATES SUB LOT 16
Tax Annual Amount
4348
Legal Description
T3N, R9E, SEC 21 HIGHLAND ESTATES SUB LOT 16
Utilities
Utilities
Natural Gas Available
Heating system
Forced Air
Building Details
Year built
1958
Floors in Building
1
Number of units
4
Listing Agency:
GRI Homes for Today
(248) 234-6789
Listed By:
Tjader Gerdom · License #6502357230
(248) 515-7606
Added: Jun 25, 2025
Changed: Aug 4
Last Checked: Aug 20 at 9:06PM
MLS# 25030797
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This well-maintained office building is divided into four units, with one unit currently occupied by a month-to-month tenant. The property is offered for sale as a multi-unit office asset suitable for owner-users or investors.
The building is located on Highland Road (M-59) in Waterford, MI, between Crescent Lake Road and Airport Road, and is less than a half mile from Oakland County International Airport.
The property consists of approximately 3,714 square feet and includes pylon signage, supporting visibility for the building’s street-facing location.
The building is located on Highland Road (M-59) in Waterford, MI, between Crescent Lake Road and Airport Road, and is less than a half mile from Oakland County International Airport.
The property consists of approximately 3,714 square feet and includes pylon signage, supporting visibility for the building’s street-facing location.
Key Highlights
- 4‑unit office building with one unit currently occupied by a month‑to‑month tenant
- Located on Highland Road (M‑59) between Crescent Lake Road and Airport Road
- Less than 0.5 mile from Oakland County International Airport
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
$12,785
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
3.01%
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%
$255,700
$255.7K
Cap Rate 7%
$182,643
$182.6K
Cap Rate 9%
$142,056
$142.1K
Market Conditions
NOI Build-Up for 3,714 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
$22.3K $6.00/SF
− Vacancy
−$5.2K −$1.41/SF
EGI
$17.0K $4.59/SF
− OpEx
−$4.3K −$1.15/SF
NOI
$12.8K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$255,700
Cap Rate 7%
$182,643
Cap Rate 9%
$142,056
Alternative Uses
Best Use
Office B
$182.6K
$159.8K – $213.1K
NOI $12,785 @ 7.0% cap · market cap 3.01%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$801.1K
$700.9K – $934.6K
NOI $56,075 @ 7.0% cap · market cap 13.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Office units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
487
Businesses Nearby
Explore this area
Business Placement
Demographics for 48327, MI
21,811
Population
9,864
Households
2.2
Avg Household Size
41
Median Age
32%
College-Educated
94%
High-School Grad
11.3 sq mi
ZIP Area
1,930
Density / Sq Mi
$75,512
Median Household Income
$46,259
Median Earnings
$1,058
Median Rent
$241,600
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?
Office units - Four-unit office building with one month-to-month tenant, located on Highland Road between Crescent Lake and Airport roads.
Where is this office units located?
The property is located at 5685 Highland Road Waterford, MI.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 4‑unit office building with one unit currently occupied by a month‑to‑month tenant; Located on Highland Road (M‑59) between Crescent Lake Road and Airport Road; Less than 0.5 mile from Oakland County International Airport
