Versatile Commercial Property in
For Sale
Contact for pricing
5720 E Davison Street, Hamtramck, MI 48212
Two buildings offering dealership or industrial opportunities in Hamtramck.
Property Size4,970 SF
Price / SF$108.65
Days on Market701
Property Features for 5720 E Davison Street
General Information
Standard status
Active
Size
4,970 SF
Property subtype
Industrial, Retail
Building Details
Year Built
1952
Buildings
2
Units
2
Listing Agency:
Network Realty LLC
Listed By:
Nadia Kassim · License #6501409154
(586) 668-3106
Source:
Crexi
Added: Oct 13, 2024
Changed: Sep 8
Last Checked: Sep 12 at 3:38AM
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 Network Realty LLC
Investment Insights
Based on property information with market context.
This property features two buildings situated on a single lot, presenting various opportunities for potential use. The site is located in Hamtramck, Michigan. The property offers 4970 square feet of space. According to provided information, the property can be used as a dealership. The property is suitable for automotive, retail, and industrial purposes.
Key Highlights
- Two buildings on the lot
- Opportunity for use as a dealership
- Many opportunities for use
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
$47,092
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
8.72%
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%
$941,840
$941.8K
Cap Rate 7%
$672,743
$672.7K
Cap Rate 9%
$523,244
$523.2K
Market Conditions
NOI Build-Up for 4,970 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
$71.6K $14.40/SF
− Vacancy
−$4.3K −$0.86/SF
EGI
$67.3K $13.54/SF
− OpEx
−$20.2K −$4.06/SF
NOI
$47.1K $9.48/SF
Area
Wayne County, MI
Vacancy
6.00%
Lease Rate
$14.40 /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%
$941,840
Cap Rate 7%
$672,743
Cap Rate 9%
$523,244
Alternative Uses
Best Use
Retail
$672.7K
$588.7K – $784.9K
NOI $47,092 @ 7.0% cap · market cap 8.72%
Second Best
Industrial
$367.6K
$321.6K – $428.8K
NOI $25,730 @ 7.0% cap · market cap 4.76%
Theoretical Best
Specialty Retail
$920.2K
$805.1K – $1.07M
NOI $64,411 @ 7.0% cap · market cap 11.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
298
Businesses Nearby
9k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Mobil
Shops & Services
7,010 visits/mo
0.2 miles
Sunoco
Shops & Services
2,252 visits/mo
0.3 miles
Demographics for 48212, MI
43,192
Population
14,739
Households
2.9
Avg Household Size
29
Median Age
16%
College-Educated
68%
High-School Grad
5.3 sq mi
ZIP Area
8,149
Density / Sq Mi
$37,293
Median Household Income
$28,894
Median Earnings
$935
Median Rent
$98,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Automotive property - Two buildings offering dealership or industrial opportunities in Hamtramck.
Where is this automotive property located?
The property is located at 5720 E Davison Street Hamtramck, MI.
What is the asking price?
The asking price for this property is $539,999.
What are key features of this property?
This property features: Two buildings on the lot; Opportunity for use as a dealership; Many opportunities for use
