Renovated Commercial Property on
For Sale
$4,500,000
5900 Highland Rd, Waterford, MI 48327
Renovated 49,434 SF building on approximately 7.5 acres.
Property Size49,434 SF
Lot Size7.28 Acres
Price / SF$91.03
Days on Market152
Property Features for 5900 Highland Rd
General Information
Standard status
Active
Size
49,434 SF
Lot size
7.28 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$64,968
Building Details
Year Built
1993
Units
1
Listing Agency:
Lasco Real Estate Group
(248) 840-6059
Listed By:
Jennifer Lasco · License #6502402604
(248) 840-6059
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 2:15PM
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 Lasco Real Estate Group
Investment Insights
Based on property information with market context.
This commercial property, built in 1972 and fully renovated in 2023, features 49,434 square feet of building space on just under 7.5 acres of land. The property is located at 5900 Highland Road, Waterford, MI 48327. The front portion of the building has been used for automotive dealership sales and is suitable for businesses requiring retail store frontage or client services, with private offices for management. The property is partially leased, with just under 20% currently occupied through June 30, 2029. The property consists of two parcels: 1316352020 (6.359 acres) and 1316352029 (0.918 acres).
Key Highlights
- Fully renovated in 2023.
- Large building space: 49,434 square feet.
- Sits on just under 7.5 acres of land.
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
$244,927
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
5.44%
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%
$4,898,540
$4.9M
Cap Rate 7%
$3,498,957
$3.5M
Cap Rate 9%
$2,721,411
$2.7M
Market Conditions
NOI Build-Up for 49,434 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
$363.3K $7.35/SF
− Vacancy
−$13.4K −$0.27/SF
EGI
$349.9K $7.08/SF
− OpEx
−$105.0K −$2.12/SF
NOI
$244.9K $4.95/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /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%
$4,898,540
Cap Rate 7%
$3,498,957
Cap Rate 9%
$2,721,411
Alternative Uses
Best Use
Retail
$7.60M
$6.65M – $8.87M
NOI $531,930 @ 7.0% cap · market cap 11.82%
Second Best
Industrial
$3.50M
$3.06M – $4.08M
NOI $244,927 @ 7.0% cap · market cap 5.44%
Theoretical Best
Specialty Retail
$10.66M
$9.33M – $12.44M
NOI $746,374 @ 7.0% cap · market cap 16.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
406
Businesses Nearby
Well-served
Demand for This Use
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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Similar Off Market Nearby
- Enterprise Rent-A-Car — 6175 Highland Rd, Waterford Twp, MI 48327
- Car Rental Waterford — 6510 highland rd, waterford twp, mi 48327
- U-Haul Neighborhood Dealer — 5684 Highland Rd, Waterford Twp, MI 48327, United States
- Hertz Car Rental — 6260 North Service Drive, Waterford Twp, MI 48327
Frequently Asked Questions
What type of property is this?
Automotive property - Renovated 49,434 SF building on approximately 7.5 acres.
Where is this automotive property located?
The property is located at 5900 Highland Rd Waterford, MI.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Fully renovated in 2023.; Large building space: **49,434 square feet.**; Sits on just under 7.5 acres of land.
