7,000 SF Auto Repair
For Sale
Contact for pricing
11820-11866 Gratiot Ave, Detroit, MI 48213
7,000 SF auto repair shop for sale.
Property Size7,000 SF
Price / SF$85.71
Days on Market3061
Property Features for 11820-11866 Gratiot Ave
General Information
Standard status
Active
Size
7,000 SF
Property subtype
Retail
Building Details
Buildings
2
Listing Agency:
NAI Farbman Southfield
(248) 351-4367
Listed By:
Brad Margolis · License #MI 6501371948
Source:
Crexi
Added: Apr 14, 2018
Changed: Aug 19
Last Checked: Aug 29 at 4:59PM
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 NAI Farbman Southfield
Investment Insights
Based on property information with market context.
A 7,000 square foot auto repair shop is available for sale. The property is located at 11820-11866 Gratiot Ave, Detroit, MI 48213 and is suitable for auto shops, automotive properties, retail properties, and general commercial real estate purposes.
Key Highlights
- 7,000 SF auto repair shop
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
$34,046
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
5.67%
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%
$680,920
$680.9K
Cap Rate 7%
$486,371
$486.4K
Cap Rate 9%
$378,289
$378.3K
Market Conditions
NOI Build-Up for 7,000 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
$51.2K $7.32/SF
− Vacancy
−$2.6K −$0.37/SF
EGI
$48.6K $6.95/SF
− OpEx
−$14.6K −$2.08/SF
NOI
$34.0K $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%
$680,920
Cap Rate 7%
$486,371
Cap Rate 9%
$378,289
Alternative Uses
Best Use
Retail
$1.23M
$1.08M – $1.44M
NOI $86,218 @ 7.0% cap · market cap 14.37%
Second Best
Industrial
$486.4K
$425.6K – $567.4K
NOI $34,046 @ 7.0% cap · market cap 5.67%
Theoretical Best
Office A
$1.54M
$1.35M – $1.80M
NOI $108,096 @ 7.0% cap · market cap 18.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
249
Businesses Nearby
33k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 90%
Dining 6%
Electronics 4%
Family Dollar
Shops & Services
15,657 visits/mo
0.4 miles
BP
Shops & Services
11,872 visits/mo
0.3 miles
Marathon Petroleum
Shops & Services
2,385 visits/mo
0.5 miles
Little Caesars Pizza
Dining
1,984 visits/mo
0.1 miles
Boost Mobile
Electronics
1,304 visits/mo
0.4 miles
Demographics for 48213, MI
19,088
Population
11,365
Households
1.7
Avg Household Size
39
Median Age
7%
College-Educated
82%
High-School Grad
6.5 sq mi
ZIP Area
2,937
Density / Sq Mi
$33,755
Median Household Income
$24,765
Median Earnings
$837
Median Rent
$52,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Similar Off Market Nearby
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- Frank's Exotic Auto Center — 10920 Conner St, Detroit, MI 48213
- Express Auto Repair — 11820 Gratiot Ave, Detroit, MI 48213
Frequently Asked Questions
What type of property is this?
Auto shop - 7,000 SF auto repair shop for sale.
Where is this auto shop located?
The property is located at 11820-11866 Gratiot Ave Detroit, MI.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: 7,000 SF auto repair shop
