Industrial Warehouse with
For Sale
Contact for pricing
6566 Sterling Drive South, Sterling Heights, MI 48312
Warehouse facility includes 15'7" clear height, shop space, and dedicated office area with multiple grade level doors.
Property Size31,000 SF
Price / SF$112.90
Days on Market26
Property Features for 6566 Sterling Drive South
General Information
Standard status
Active
Size
31,000 SF
Total Parking Spaces
62
Property subtype
Industrial
Zoning
M-1
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Additional Details
Clear Height
15.6 ft
Service Bays
1
Amenities
walk-in coolers
HVAC systems
exhaust fans
floor and trench drains
vehicle wash bay
backup generator
Building Details
Year Built
1969
Year Renovated
2016
Stories
6
Listing Agency:
Signature Associates Warren
(248) 948-0103
Listed By:
Paul Hoge · License #MI 6502127881
Source:
Crexi
Added: Jul 21
Changed: Aug 14
Last Checked: Aug 14 at 8:06AM
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 Signature Associates Warren
Investment Insights
Based on property information with market context.
This industrial property provides 31,000 square feet of warehouse space plus 3,000 square feet of dedicated office area. The facility includes shop space with a separate block room totaling 5,428 square feet, and offers 15'7" clear height. Additional improvements include multiple grade level doors, walk-in coolers, comprehensive HVAC systems with exhaust fans, floor and trench drains, and a vehicle wash bay. The property also includes a backup generator for added operational continuity, along with a covered and fenced rear area of 1,980 square feet.
The property is offered for sale at 6566 Sterling Drive South in Sterling Heights, Michigan.
The layout is designed to support both production and support functions, combining office space with industrial, climate-controlled, and drainage-ready areas.
The property is offered for sale at 6566 Sterling Drive South in Sterling Heights, Michigan.
The layout is designed to support both production and support functions, combining office space with industrial, climate-controlled, and drainage-ready areas.
Key Highlights
- 31,000 SF industrial space plus 3,000 SF dedicated office area
- 15'7" clear height with shop space including a separate block room (5,428 SF)
- Multiple grade level doors for warehouse operations
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
$193,383
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
5.53%
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%
$3,867,660
$3.9M
Cap Rate 7%
$2,762,614
$2.8M
Cap Rate 9%
$2,148,700
$2.1M
Market Conditions
NOI Build-Up for 31,000 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
$238.1K $7.68/SF
− Vacancy
−$10.6K −$0.34/SF
EGI
$227.5K $7.34/SF
− OpEx
−$34.1K −$1.10/SF
NOI
$193.4K $6.24/SF
Area
Sterling Heights, MI
Vacancy
4.44%
Lease Rate
$7.68 /SF/Yr
Expense Ratio
15.00%
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%
$3,867,660
Cap Rate 7%
$2,762,614
Cap Rate 9%
$2,148,700
Alternative Uses
Best Use
Warehouse
$2.76M
$2.42M – $3.22M
NOI $193,383 @ 7.0% cap · market cap 5.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.84M
$5.98M – $7.98M
NOI $478,710 @ 7.0% cap · market cap 13.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
15 ft
Clear height
1
Service bays
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
500
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48312, MI
34,854
Population
14,282
Households
2.4
Avg Household Size
42
Median Age
31%
College-Educated
87%
High-School Grad
11.1 sq mi
ZIP Area
3,140
Density / Sq Mi
$71,266
Median Household Income
$40,488
Median Earnings
$1,176
Median Rent
$253,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse facility includes 15'7" clear height, shop space, and dedicated office area with multiple grade level doors.
Where is this warehouse located?
The property is located at 6566 Sterling Drive South Sterling Heights, MI.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 31,000 SF industrial space plus 3,000 SF dedicated office area; 15'7" clear height with shop space including a separate block room (5,428 SF); Multiple grade level doors for warehouse operations
