Freestanding Retail Building in
For Sale
$150,000
595 Orchard Lake Rd, Pontiac, MI 48341
Versatile 1,224 SF retail building on 0.09 acres.
Property Size1,224 SF
Lot Size0.09 Acres
Price / SF$122.55
Days on Market108
Property Features for 595 Orchard Lake Rd
General Information
Standard status
Active
Size
1,224 SF
Lot size
0.09 Acres
Property subtype
Commercial
Building Details
Year Built
1950
Listing Agency:
EXP Realty Birmingham
(248) 686-0024
Listed By:
Paul Mychalowych · License #6506042081
(248) 686-0024
Source:
Elliman
Added: Apr 24
Changed: Jul 10
Last Checked: Aug 8 at 1:00PM
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.
This freestanding commercial property is located in Pontiac, offering visibility and access on Orchard Lake Road. The 1,224 square foot retail building is situated on a 0.09 acre corner lot with frontage on Orchard Lake Road and Thomas Lane. The property is suitable for retail, service-oriented businesses, office space, or owner occupancy. It features tenant-controlled HVAC, on-site parking, storage space, and signage exposure to local traffic. Located in a commercial corridor, the site benefits from daytime and commuter traffic, proximity to retail and business nodes, and access to major roadways. The property is suited for an owner-operator or investor seeking a compact, high-visibility retail footprint. The bike score is 40, indicating it is somewhat bikeable, and the walk score is 52, indicating it is somewhat walkable.
Key Highlights
- Prime freestanding commercial property with excellent visibility on Orchard Lake Road
- Versatile 1,224 sq ft building suitable for retail, service, office, or owner occupancy
- High‑traffic location in a busy commercial corridor with strong daytime and commuter traffic
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
$13,171
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
8.78%
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%
$263,420
$263.4K
Cap Rate 7%
$188,157
$188.2K
Cap Rate 9%
$146,344
$146.3K
Market Conditions
NOI Build-Up for 1,224 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
$20.6K $16.80/SF
− Vacancy
−$1.7K −$1.43/SF
EGI
$18.8K $15.37/SF
− OpEx
−$5.6K −$4.61/SF
NOI
$13.2K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$263,420
Cap Rate 7%
$188,157
Cap Rate 9%
$146,344
Alternative Uses
Best Use
Retail
$188.2K
$164.6K – $219.5K
NOI $13,171 @ 7.0% cap · market cap 8.78%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$264.0K
$231.0K – $308.0K
NOI $18,480 @ 7.0% cap · market cap 12.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
431
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48341, MI
16,980
Population
8,601
Households
2
Avg Household Size
38
Median Age
24%
College-Educated
86%
High-School Grad
6.7 sq mi
ZIP Area
2,534
Density / Sq Mi
$46,185
Median Household Income
$34,200
Median Earnings
$917
Median Rent
$124,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Storefront property - Versatile 1,224 SF retail building on 0.09 acres.
Where is this storefront property located?
The property is located at 595 Orchard Lake Rd Pontiac, MI.
What is the asking price?
The asking price for this property is $150,000.
What are key features of this property?
This property features: Prime freestanding commercial property with excellent visibility on Orchard Lake Road; Versatile 1,224 sq ft building suitable for retail, service, office, or owner occupancy; High‑traffic location in a busy commercial corridor with strong daytime and commuter traffic
