Freestanding Auto Parts Retail
For Sale
Contact for pricing
8417 West Vernor Highway, Detroit, MI 48209
Freestanding 2003-built auto parts store leased to O'Reilly Auto Parts with 4+ years remaining on the term.
Property Size9,920 SF
Price / SF$212.10
Days on Market52
Property Features for 8417 West Vernor Highway
General Information
Standard status
Active
Size
9,920 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$144,140
Additional Details
Cap Rate
6.85%
Building Details
Year Built
2003
Buildings
1
Tenancy
Single
Listing Agency:
CBRE
Listed By:
David Hesano · License #MI 6501300653
Source:
Crexi
Added: Jul 8
Changed: Aug 13
Last Checked: Aug 26 at 10:44AM
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 CBRE
Investment Insights
Based on property information with market context.
Constructed in 2003, this freestanding auto parts retail building is currently leased to O'Reilly Auto Parts. The property is described as having over four (4) years remaining on its current lease term, with rental rate increases scheduled in each of the three remaining option periods. The lease structure is double-net (NN), with the landlord’s responsibilities limited to the roof, structure, outer walls, and utility service lines.
This single-tenant offering is located at 8417 West Vernor Highway in Detroit, MI, within a densely populated trade area, according to Placer.ai. The remarks also state the unit ranks in the top quartile nationally and within the top 84th percentile within Michigan.
The seller is offering the property for sale as a single-tenant investment with O'Reilly continuing operations at this freestanding location.
This single-tenant offering is located at 8417 West Vernor Highway in Detroit, MI, within a densely populated trade area, according to Placer.ai. The remarks also state the unit ranks in the top quartile nationally and within the top 84th percentile within Michigan.
The seller is offering the property for sale as a single-tenant investment with O'Reilly continuing operations at this freestanding location.
Key Highlights
- Freestanding auto parts store built in 2003, currently leased to O'Reilly Auto Parts
- Lease has 4+ years remaining, with rental rate increases in each of the three remaining option periods
- Double‑net (NN) lease: landlord responsibilities limited to roof, structure, outer walls, and utility service lines
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
$122,184
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
5.81%
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%
$2,443,680
$2.4M
Cap Rate 7%
$1,745,486
$1.7M
Cap Rate 9%
$1,357,600
$1.4M
Market Conditions
NOI Build-Up for 9,920 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
$184.5K $18.60/SF
− Vacancy
−$10.0K −$1.00/SF
EGI
$174.5K $17.60/SF
− OpEx
−$52.4K −$5.28/SF
NOI
$122.2K $12.32/SF
Area
Detroit, MI
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%
$2,443,680
Cap Rate 7%
$1,745,486
Cap Rate 9%
$1,357,600
Alternative Uses
Best Use
Retail
$1.75M
$1.53M – $2.04M
NOI $122,184 @ 7.0% cap · market cap 5.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.19M
$1.91M – $2.55M
NOI $153,187 @ 7.0% cap · market cap 7.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
409
Businesses Nearby
Explore this area
Business Placement
Demographics for 48209, MI
27,096
Population
11,020
Households
2.5
Avg Household Size
30
Median Age
10%
College-Educated
61%
High-School Grad
6.8 sq mi
ZIP Area
3,985
Density / Sq Mi
$42,152
Median Household Income
$30,091
Median Earnings
$843
Median Rent
$82,800
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?
Retail space - Freestanding 2003-built auto parts store leased to O'Reilly Auto Parts with 4+ years remaining on the term.
Where is this retail space located?
The property is located at 8417 West Vernor Highway Detroit, MI.
What is the asking price?
The asking price for this property is $2,104,000.
What are key features of this property?
This property features: Freestanding auto parts store built in 2003, currently leased to O'Reilly Auto Parts; Lease has 4+ years remaining, with rental rate increases in each of the three remaining option periods; Double‑net (NN) lease: landlord responsibilities limited to roof, structure, outer walls, and utility service lines
