Detroit Retail Opportunity with
For Sale
Contact for pricing
Pending
16245 Livernois, Detroit, MI 48221
Retail property with drive-thru, high visibility, and redevelopment potential.
Property Size1,766 SF
Lot Size0.28 Acres
Days on Market1029
Property Features for 16245 Livernois
General Information
Standard status
Pending
Size
1,766 SF
Lot size
0.28 Acres
Property subtype
Retail
Zoning
B4
Investment Type
Owner/User
Building Details
Year Built
1996
Listing Agency:
SRS Real Estate Partners Newport Beach
Listed By:
Michael Carter · License #MI 6501369793
(248) 688-0630
Source:
Crexi
Added: Nov 10, 2023
Changed: Aug 21
Last Checked: Sep 4 at 12:00PM
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 SRS Real Estate Partners Newport Beach
Investment Insights
Based on property information with market context.
This property, constructed in 1996, offers a lease-up or redevelopment opportunity. Zoned B-4 – General Business District, it allows for a variety of commercial uses. The 1,766 square foot building is situated on 0.28 acres and includes a drive-thru. The property is located on Livernois Avenue, providing visibility and access to approximately 23,800 vehicles per day. It also benefits from direct access to State Highway 10 (162,000 VPD) and State Highway 8 (98,500 VPD). The surrounding area includes McDonald’s, ALDI, Church’s Texas Chicken, CVS Pharmacy, Family Dollar, Detroit Sip, and O’Reilly Auto Parts. The property is located in front of University of Detroit Mercy, which has over 5,200 students, 210 faculty members, and 100 academic degrees and programs. The location is near single-family communities and multi-family complexes, providing a residential consumer base. The trade area is supported by over 414,000 residents and 124,500 employees, with an average annual household income of $62,954.
Key Highlights
- High‑traffic location with excellent visibility: 23,800 VPD on Livernois Avenue and direct access to State Highway 10 (162,000 VPD) and State Highway 8 (98,500 VPD).
- Located in a highly desirable retail area near national/regional tenants like McDonald’s, ALDI, and CVS.
- Direct access to a large residential consumer base.
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
$23,305
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
5.48%
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%
$466,100
$466.1K
Cap Rate 7%
$332,929
$332.9K
Cap Rate 9%
$258,944
$258.9K
Market Conditions
NOI Build-Up for 1,766 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
$32.8K $18.60/SF
− Vacancy
−$1.8K −$1.00/SF
EGI
$31.1K $17.60/SF
− OpEx
−$7.8K −$4.40/SF
NOI
$23.3K $13.20/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$466,100
Cap Rate 7%
$332,929
Cap Rate 9%
$258,944
Alternative Uses
Best Use
Specialty Retail
$332.9K
$291.3K – $388.4K
NOI $23,305 @ 7.0% cap · market cap 5.48%
Second Best
Retail
$310.7K
$271.9K – $362.5K
NOI $21,752 @ 7.0% cap · market cap 5.12%
Theoretical Best
Office A
$389.6K
$340.9K – $454.5K
NOI $27,271 @ 7.0% cap · market cap 6.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
486
Businesses Nearby
55k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 51%
Dining 49%
McDonald's
Dining
23,140 visits/mo
0.4 miles
Exxon
Shops & Services
7,377 visits/mo
0.4 miles
Valero Energy
Shops & Services
6,793 visits/mo
0.4 miles
Citgo
Shops & Services
5,242 visits/mo
0.1 miles
Marathon Petroleum
Shops & Services
4,637 visits/mo
0.4 miles
Demographics for 48221, MI
38,204
Population
17,452
Households
2.2
Avg Household Size
38
Median Age
29%
College-Educated
90%
High-School Grad
5.2 sq mi
ZIP Area
7,347
Density / Sq Mi
$55,583
Median Household Income
$37,019
Median Earnings
$1,174
Median Rent
$138,700
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 property with drive-thru, high visibility, and redevelopment potential.
Where is this retail space located?
The property is located at 16245 Livernois Detroit, MI.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: High‑traffic location with excellent visibility: 23,800 VPD on Livernois Avenue and direct access to State Highway 10 (162,000 VPD) and State Highway 8 (98,500 VPD).; Located in a highly desirable retail area near national/regional tenants like McDonald’s, ALDI, and CVS.; Direct access to a large residential consumer base.
