Renovated Office Building in
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15929 W 7 Mile Rd, Detroit, MI 48235
Turnkey 1,500 SF office in Detroit's College Park area.
Property Size1,500 SF
Price / SF$65
Days on Market670
Property Features for 15929 W 7 Mile Rd
General Information
Standard status
Active
Size
1,500 SF
Total Parking Spaces
2
Property subtype
Office
Zoning
B4
Investment Type
Owner/User
Building Details
Year Built
1955
Year Renovated
2006
Listing Agency:
P.A. Commercial Corporate & Investment Real Estate
(248) 663-0508
Listed By:
DeVon Jackson · License #MI 6501320577
Source:
Crexi
Added: Oct 11, 2024
Changed: Aug 9
Last Checked: Aug 10 at 3:32PM
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 P.A. Commercial Corporate & Investment Real Estate
Investment Insights
Based on property information with market context.
This 1,500 SF office building, originally constructed in 1955 and renovated in 2006, offers a turnkey solution for business owners seeking a location in the College Park area of Detroit. Zoned B4, the property features a complete buildout, including paneled walls, tile floors, four private offices, a reception area, a breakroom, and two bathrooms. The property also includes available furniture, fixtures, and equipment, along with two dedicated parking spaces.
Key Highlights
- Turnkey office space ready for immediate occupancy.
- Zoned B4, suitable for a variety of business uses.
- Includes furniture, fixtures, and equipment.
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
$5,164
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
5.30%
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%
$103,280
$103.3K
Cap Rate 7%
$73,771
$73.8K
Cap Rate 9%
$57,378
$57.4K
Market Conditions
NOI Build-Up for 1,500 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
$9.0K $6.00/SF
− Vacancy
−$2.1K −$1.41/SF
EGI
$6.9K $4.59/SF
− OpEx
−$1.7K −$1.15/SF
NOI
$5.2K $3.44/SF
Area
ZIP 48235
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$103,280
Cap Rate 7%
$73,771
Cap Rate 9%
$57,378
Alternative Uses
Best Use
Office B
$73.8K
$64.6K – $86.1K
NOI $5,164 @ 7.0% cap · market cap 5.30%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$212.6K
$186.1K – $248.1K
NOI $14,884 @ 7.0% cap · market cap 15.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
471
Businesses Nearby
Explore this area
Business Placement
Demographics for 48235, MI
45,188
Population
20,946
Households
2.2
Avg Household Size
39
Median Age
15%
College-Educated
91%
High-School Grad
6.2 sq mi
ZIP Area
7,288
Density / Sq Mi
$41,011
Median Household Income
$31,545
Median Earnings
$1,151
Median Rent
$79,400
Median Home Value
Market
Vacancy Rate% for Office in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Turnkey 1,500 SF office in Detroit's College Park area.
Where is this office building located?
The property is located at 15929 W 7 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $97,500.
What are key features of this property?
This property features: Turnkey office space ready for immediate occupancy.; Zoned B4, suitable for a variety of business uses.; Includes furniture, fixtures, and equipment.
