Move-in Ready Medical Office
For Sale
Contact for pricing
1026 W Eleven Mile Rd, Royal Oak, MI 48067
Prime location near Downtown Royal Oak with expansive parking.
Property Size11,175 SF
Price / SF$187.92
Days on Market685
Property Features for 1026 W Eleven Mile Rd
General Information
Standard status
Active
Size
11,175 SF
Class
B
Total Parking Spaces
3
Property subtype
Office
Zoning
Office
Occupancy
71%
Lease Type
NNN
Building Details
Year Built
1950
Year Renovated
2007
Stories
2
Tenancy
Multi
Listing Agency:
L. Mason Capitani
(248) 637-3515
Listed By:
Aaron Smith · License #MI 6501377543
Source:
Crexi
Added: Oct 3, 2024
Changed: Aug 8
Last Checked: May 12 at 10:39PM
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 L. Mason Capitani
Investment Insights
Based on property information with market context.
This move-in ready medical office space is located a few blocks from Downtown Royal Oak. The property features expansive parking, direct suite entry, dedicated HVAC, and high visibility signage. The property size is 11175 square feet.
Key Highlights
- Prime location near Downtown Royal Oak
- Move‑in ready condition
- Expansive parking available
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
$151,225
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
7.20%
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%
$3,024,500
$3.0M
Cap Rate 7%
$2,160,357
$2.2M
Cap Rate 9%
$1,680,278
$1.7M
Market Conditions
NOI Build-Up for 11,175 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
$281.6K $25.20/SF
− Vacancy
−$29.6K −$2.65/SF
EGI
$252.0K $22.55/SF
− OpEx
−$100.8K −$9.02/SF
NOI
$151.2K $13.53/SF
Area
Oakland County, MI
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$3,024,500
Cap Rate 7%
$2,160,357
Cap Rate 9%
$1,680,278
Alternative Uses
Best Use
Healthcare Medical
$2.16M
$1.89M – $2.52M
NOI $151,225 @ 7.0% cap · market cap 7.20%
Second Best
Office B
$549.6K
$480.9K – $641.2K
NOI $38,470 @ 7.0% cap · market cap 1.83%
Theoretical Best
Specialty Retail
$2.41M
$2.11M – $2.81M
NOI $168,725 @ 7.0% cap · market cap 8.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,392
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
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?
Medical Office Space - Prime location near Downtown Royal Oak with expansive parking.
Where is this medical office space located?
The property is located at 1026 W Eleven Mile Rd Royal Oak, MI.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: Prime location near Downtown Royal Oak; Move‑in ready condition; Expansive parking available
