Building Details

Year Built 1968

Buildings 1

Stories 1

Listing Agency: Colliers - Royal Oak/Detroit, Michigan

Listed By: Michael Koenigbauer · License #6501346706

Source: Crexi

Added: Apr 5, 2023 Changed: Aug 15 Last Checked: Aug 20 at 1:37PM

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Investment Insights

Based on property information with market context.

This commercial real estate offering features a 22,023-square-foot retail space. The property is located on Orchard Lake Road in West Bloomfield Township, Michigan.

Key Highlights

• Retail Property
• Spacious 22,023 SqFt
• Built in 1968

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

$236,976

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

7.42%

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%

$4,739,520 $4.7M

Cap Rate 7%

$3,385,371 $3.4M

Cap Rate 9%

$2,633,067 $2.6M

Market Conditions

NOI Build-Up for 22,023 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

$370.0K $16.80/SF

− Vacancy

−$31.4K −$1.43/SF

EGI

$338.5K $15.37/SF

− OpEx

−$101.6K −$4.61/SF

NOI

$237.0K $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%

$4,739,520

Cap Rate 7%

$3,385,371

Cap Rate 9%

$2,633,067

Alternative Uses

Best Use

Retail

$3.39M

$2.96M – $3.95M (±1% cap)

NOI $236,976 @ 7.0% cap · market cap 7.42%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$4.75M

$4.16M – $5.54M (±1% cap)

NOI $332,512 @ 7.0% cap · market cap 10.41%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Real Estate Agency Restaurant Building Supply Law Firm Auto Repair Shop Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

371

Businesses Nearby

Explore this area Business Placement

Demographics for 48322, MI

32,188

Population

13,481

Households

2.4

Avg Household Size

47

Median Age

58%

College-Educated

94%

High-School Grad

11.7 sq mi

ZIP Area

2,751

Density / Sq Mi

$118,001

Median Household Income

$59,991

Median Earnings

$1,975

Median Rent

$374,000

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

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Frequently Asked Questions

What type of property is this?

Retail space - 22,023 SqFt retail space available for sale.

Where is this retail space located?

The property is located at 6644 Orchard Lake Rd West Bloomfield Township, MI.

What is the asking price?

The asking price for this property is $3,195,000.

What are key features of this property?

This property features: Retail Property; Spacious 22,023 SqFt; Built in 1968