Downtown Office Building with Freeway
For Sale
$2,000,000
965 E Jefferson Ave, Detroit, MI 48207
Prominent downtown office building with Chrysler Freeway frontage, suited for office use or development.
Property Size16,567 SF
Price / SF$120.72
Days on Market60
Property Features for 965 E Jefferson Ave
General Information
Standard status
Active
Size
16,567 SF
Property subtype
Office
Listing Agency:
Newmark Knight Frank Detroit
(248) 705-9115
Listed By:
Larry Emmons · License #6502356698
(248) 705-9115
Source:
Cpix.resimplifi
Added: Jun 8
Changed: Jul 10
Last Checked: Aug 6 at 3:30AM
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 Newmark Knight Frank Detroit
Investment Insights
Based on property information with market context.
This prominent downtown office building is offered for sale and totals 16,567 square feet. The property’s configuration supports office use, with the building positioned to accommodate a range of office-oriented requirements.
Located at 965 E Jefferson Ave in Detroit, the building provides frontage along the Chrysler Freeway. That direct roadway presence is a key consideration for office users seeking visibility and for developers evaluating a downtown redevelopment opportunity.
For office users, the building’s downtown positioning and freeway frontage can support branding and day-to-day accessibility. For developers, the property’s established office use and its prominent street exposure may offer a practical foundation for adaptive reuse or redevelopment planning, subject to applicable approvals and underwriting. Offered at $2,000,000, this is a straightforward option for buyers looking for a centrally located office asset with freeway frontage.
Located at 965 E Jefferson Ave in Detroit, the building provides frontage along the Chrysler Freeway. That direct roadway presence is a key consideration for office users seeking visibility and for developers evaluating a downtown redevelopment opportunity.
For office users, the building’s downtown positioning and freeway frontage can support branding and day-to-day accessibility. For developers, the property’s established office use and its prominent street exposure may offer a practical foundation for adaptive reuse or redevelopment planning, subject to applicable approvals and underwriting. Offered at $2,000,000, this is a straightforward option for buyers looking for a centrally located office asset with freeway frontage.
Key Highlights
- Prominent downtown office building
- Chrysler Freeway frontage
- Suited for office use or development
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
$167,839
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
8.39%
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%
$3,356,780
$3.4M
Cap Rate 7%
$2,397,700
$2.4M
Cap Rate 9%
$1,864,878
$1.9M
Market Conditions
NOI Build-Up for 16,567 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
$290.3K $17.52/SF
− Vacancy
−$66.5K −$4.01/SF
EGI
$223.8K $13.51/SF
− OpEx
−$55.9K −$3.38/SF
NOI
$167.8K $10.13/SF
Area
Detroit, MI
Vacancy
22.90%
Lease Rate
$17.52 /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%
$3,356,780
Cap Rate 7%
$2,397,700
Cap Rate 9%
$1,864,878
Alternative Uses
Best Use
Office B
$2.40M
$2.10M – $2.80M
NOI $167,839 @ 7.0% cap · market cap 8.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.65M
$3.20M – $4.26M
NOI $255,832 @ 7.0% cap · market cap 12.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,304
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
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 - Prominent downtown office building with Chrysler Freeway frontage, suited for office use or development.
Where is this office building located?
The property is located at 965 E Jefferson Ave Detroit, MI.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Prominent downtown office building; Chrysler Freeway frontage; Suited for office use or development
