Two-Building Retail/Office
For Sale
$549,000
728 W 11 Mile Road, Madison Heights, MI 48071
COMMERCIAL - Madison Heights, MI
Property Size4,539 SF
Lot Size0.05 Acres
Price / SF$120.95
Days on Market174
Property Features for 728 W 11 Mile Road
General Information
Property type
Commercial Sale
Property subtype
Retail
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 1, Bathroom 2, Bathroom 3
Elementary school district
Madison
Middle school district
Madison
High school district
Madison
Directions
West 11 Mile Road, just east of I-75
Standard status
Active
APN
25-14-455-027
Size
4,539 SF
Lot size
0.05 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
T1N, R11E, SEC 14 BLANCHE VILLAS SUB LOT 203
Tax Annual Amount
7976
Legal Description
T1N, R11E, SEC 14 BLANCHE VILLAS SUB LOT 203
Utilities
Utilities
Natural Gas Available
Heating system
Forced Air
Building Details
Year built
1921
Number of units
3
Listing Agency:
GRI Homes for Today
(248) 234-6789
Listed By:
Tjader Gerdom · License #6502367710
(248) 515-7606
Added: Feb 23
Changed: Aug 4
Last Checked: Aug 16 at 8:06AM
MLS# 26007084
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This offering includes two buildings in Madison Heights, Michigan: 728 W 11 Mile Road and 740 W 11 Mile Road. 728 W 11 Mile Road is a single-story retail/office building that is fully occupied. 740 W 11 Mile Road is a two-story mixed-use building with ground floor retail/office space (940 SF) available for lease, while the second-floor apartment is fully occupied.
The combined property size is 4,539 square feet on a 0.05-acre lot. The location is about three blocks east of I-75, providing convenient highway access from Detroit and its suburbs.
This is a straightforward two-building investment setup with one fully occupied asset and one mixed-use asset offering currently available ground floor space.
The combined property size is 4,539 square feet on a 0.05-acre lot. The location is about three blocks east of I-75, providing convenient highway access from Detroit and its suburbs.
This is a straightforward two-building investment setup with one fully occupied asset and one mixed-use asset offering currently available ground floor space.
Key Highlights
- Sale includes 728 & 740 West 11 Mile Road in Madison Heights, MI 48071 (2‑building investment).
- 728 West 11 Mile Road is a single‑story retail/office building that is fully occupied.
- 740 West 11 Mile Road is a 2‑story mixed‑use building with 940 SF ground‑floor retail/office available for lease.
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
$48,841
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
8.90%
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%
$976,820
$976.8K
Cap Rate 7%
$697,729
$697.7K
Cap Rate 9%
$542,678
$542.7K
Market Conditions
NOI Build-Up for 4,539 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
$76.3K $16.80/SF
− Vacancy
−$6.5K −$1.43/SF
EGI
$69.8K $15.37/SF
− OpEx
−$20.9K −$4.61/SF
NOI
$48.8K $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%
$976,820
Cap Rate 7%
$697,729
Cap Rate 9%
$542,678
Alternative Uses
Best Use
Retail
$697.7K
$610.5K – $814.0K
NOI $48,841 @ 7.0% cap · market cap 8.90%
Second Best
Office B
$223.2K
$195.3K – $260.4K
NOI $15,626 @ 7.0% cap · market cap 2.85%
Theoretical Best
Specialty Retail
$979.0K
$856.7K – $1.14M
NOI $68,532 @ 7.0% cap · market cap 12.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
499
Businesses Nearby
Explore this area
Business Placement
Demographics for 48071, MI
28,468
Population
14,690
Households
1.9
Avg Household Size
39
Median Age
32%
College-Educated
89%
High-School Grad
7.1 sq mi
ZIP Area
4,010
Density / Sq Mi
$66,726
Median Household Income
$49,151
Median Earnings
$1,138
Median Rent
$190,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Two-building portfolio includes fully occupied single-story retail/office and mixed-use building with ground floor space available.
Where is this retail space located?
The property is located at 728 W 11 Mile Road Madison Heights, MI.
What is the asking price?
The asking price for this property is $549,000.
What are key features of this property?
This property features: Sale includes 728 & 740 West 11 Mile Road in Madison Heights, MI 48071 (2‑building investment).; 728 West 11 Mile Road is a single‑story retail/office building that is fully occupied.; 740 West 11 Mile Road is a 2‑story mixed‑use building with 940 SF ground‑floor retail/office available for lease.
