Retail Building and Auto
For Sale
Contact for pricing
3840 East 8 Mile Rd, Detroit, MI 48234
Retail building and auto garage totaling 5,516 square feet.
Property Size5,516 SF
Price / SF$58.01
Days on Market1900
Property Features for 3840 East 8 Mile Rd
General Information
Standard status
Active
Size
5,516 SF
Property subtype
Retail
Zoning
B4
Investment Type
Owner/User
Building Details
Year Built
1962
Year Renovated
2024
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Signature Associates Southfield
Listed By:
Joe Stack · License #MI
(248) 359-0615
Source:
Crexi
Added: Jun 23, 2021
Changed: Aug 31
Last Checked: Sep 1 at 8:21PM
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 Signature Associates Southfield
Investment Insights
Based on property information with market context.
The property features a 3,025 square foot retail building and a 2,491 square foot auto garage. The structures have been completely updated and are ready for buildout.
Key Highlights
- 3,025 sq. ft. retail building
- 2,491 sq. ft. auto garage
- Completely updated
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
$26,828
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
8.38%
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%
$536,560
$536.6K
Cap Rate 7%
$383,257
$383.3K
Cap Rate 9%
$298,089
$298.1K
Market Conditions
NOI Build-Up for 5,516 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
$40.4K $7.32/SF
− Vacancy
−$2.1K −$0.37/SF
EGI
$38.3K $6.95/SF
− OpEx
−$11.5K −$2.08/SF
NOI
$26.8K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$536,560
Cap Rate 7%
$383,257
Cap Rate 9%
$298,089
Alternative Uses
Best Use
Retail
$970.6K
$849.3K – $1.13M
NOI $67,940 @ 7.0% cap · market cap 21.23%
Second Best
Industrial
$383.3K
$335.4K – $447.1K
NOI $26,828 @ 7.0% cap · market cap 8.38%
Theoretical Best
Office A
$1.22M
$1.06M – $1.42M
NOI $85,180 @ 7.0% cap · market cap 26.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
330
Businesses Nearby
10k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 65%
Dining 35%
Citgo
Shops & Services
6,701 visits/mo
0.4 miles
Krispy Krunchy Chicken
Dining
3,612 visits/mo
0.4 miles
Demographics for 48234, MI
31,442
Population
15,688
Households
2
Avg Household Size
36
Median Age
11%
College-Educated
84%
High-School Grad
7.8 sq mi
ZIP Area
4,031
Density / Sq Mi
$36,473
Median Household Income
$31,587
Median Earnings
$965
Median Rent
$57,100
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?
Retail space - Retail building and auto garage totaling 5,516 square feet.
Where is this retail space located?
The property is located at 3840 East 8 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: 3,025 sq. ft. retail building; 2,491 sq. ft. auto garage; Completely updated
