Freestanding Storefront with Loading
New
For Sale
$1,600,000
7870 SOUTHFIELD FWY, Detroit, MI 48228
Open retail layout includes showroom space, service areas, two restrooms, and overhead loading access.
Property Size9,212 SF
Lot Size0.46 Acres
Price / SF$173.69
Days on Market6
Property Features for 7870 SOUTHFIELD FWY
General Information
Standard status
Active
Size
9,212 SF
Lot size
0.46 Acres
Property subtype
Industrial
Zoning
B-4
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
on-site/lighted parking
alley access
fenced site
overhead service/loading door
central air
natural-gas forced-air heat
220V service
3-phase power
security system
closed-circuit cameras
3
Rubber
Building Details
Year Built
19
Construction
brick
Listing Agency:
EXP Realty Main
(888) 501-7085
Listed By:
Fadi Dabaja · License #6506045188
(313) 600-6189
Source:
Xome
Added: Aug 29
Changed: Sep 2
Last Checked: Sep 2 at 2:36PM
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 Main
Investment Insights
Based on property information with market context.
This freestanding retail property contains approximately 9,212 square feet on 0.46 acres, with 110 feet of frontage. The interior offers a largely open sales floor, storefront glazing, service and utility areas, two restrooms, and an overhead service/loading door. The site includes lighted on-site parking, alley access, fencing, and a security system with closed-circuit cameras. Building systems include central air, natural-gas forced-air heat, 220V service, 3-phase power, brick construction, and a rubber roof.
Positioned at Southfield Freeway and Tireman in Detroit’s B-4 General Business District, the property has exposure to freeway, service-drive, and cross-street traffic. Joy Road, Warren Avenue, Ford Road, I-94, and M-39 provide access to surrounding areas. Potential uses identified for the site include general retail, showroom, medical or dental services, fitness, professional office, salon, pet services, trade school, and select low-impact manufacturing, subject to City approval and applicable requirements.
Positioned at Southfield Freeway and Tireman in Detroit’s B-4 General Business District, the property has exposure to freeway, service-drive, and cross-street traffic. Joy Road, Warren Avenue, Ford Road, I-94, and M-39 provide access to surrounding areas. Potential uses identified for the site include general retail, showroom, medical or dental services, fitness, professional office, salon, pet services, trade school, and select low-impact manufacturing, subject to City approval and applicable requirements.
Key Highlights
- Approximately 9,212 SF freestanding retail building on 0.46 acres
- 110 feet of frontage at Southfield Freeway and Tireman
- B‑4 General Business District zoning in Detroit
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
$113,463
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
7.09%
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%
$2,269,260
$2.3M
Cap Rate 7%
$1,620,900
$1.6M
Cap Rate 9%
$1,260,700
$1.3M
Market Conditions
NOI Build-Up for 9,212 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
$171.3K $18.60/SF
− Vacancy
−$9.3K −$1.00/SF
EGI
$162.1K $17.60/SF
− OpEx
−$48.6K −$5.28/SF
NOI
$113.5K $12.32/SF
Area
ZIP 48228
Vacancy
5.40%
Lease Rate
$18.60 /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%
$2,269,260
Cap Rate 7%
$1,620,900
Cap Rate 9%
$1,260,700
Alternative Uses
Best Use
Retail
$1.62M
$1.42M – $1.89M
NOI $113,463 @ 7.0% cap · market cap 7.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.89M
$1.66M – $2.21M
NOI $132,448 @ 7.0% cap · market cap 8.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
406
Businesses Nearby
12k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 94%
Dining 6%
Chase Bank
Shops & Services
10,825 visits/mo
0.4 miles
Gambino's
Dining
720 visits/mo
0.4 miles
Demographics for 48228, MI
53,893
Population
22,620
Households
2.4
Avg Household Size
31
Median Age
11%
College-Educated
78%
High-School Grad
8.9 sq mi
ZIP Area
6,055
Density / Sq Mi
$31,485
Median Household Income
$27,533
Median Earnings
$1,086
Median Rent
$55,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Open retail layout includes showroom space, service areas, two restrooms, and overhead loading access.
Where is this storefront property located?
The property is located at 7870 SOUTHFIELD FWY Detroit, MI.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Approximately 9,212 SF freestanding retail building on 0.46 acres; 110 feet of frontage at Southfield Freeway and Tireman; B‑4 General Business District zoning in Detroit
