Commercial Land with Existing
For Sale
$600,000
999999999 26529-26545 John R Rd, Madison Heights, MI 48071
Dual-parcel redevelopment site with an existing commercial building, adjacent vacant lot, and CC City Center zoning.
Property Size1,973 SF
Price / SF$304.11
Days on Market29
Property Features for 999999999 26529-26545 John R Rd
General Information
Standard status
Active
Size
1,973 SF
Building Details
Year Built
1958
Listing Agency:
Brookstone, Realtors LLC
(248) 633-7916
Listed By:
Julia L Myers
Source:
Katie-k
Added: Aug 2
Changed: Aug 29
Last Checked: Aug 29 at 7:40PM
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 Brookstone, Realtors LLC
Investment Insights
Based on property information with market context.
This dual-parcel commercial land offering combines a 1,973-square-foot concrete block building with an adjacent vacant lot. The combined site covers 0.455 acres and provides 175 feet of frontage along John R Road. The existing structure was built in 1958 and can support interim leasing while redevelopment plans are finalized.
The property is zoned CC under the 2024 City Center designation. Supported development frameworks include residential construction of up to four stories or a three-over-one configuration with ground-floor retail and multifamily units above. The site is positioned across from a school and records traffic counts averaging more than 21,000 vehicles per day.
Connectivity includes access within 1 mile of the I-75 and I-696 interchange, 15 minutes from Downtown Detroit, and 18 minutes from the Detroit-Windsor Tunnel. The regional train station is 3 miles away, the airport is 6 miles away, and the commercial waterway is 8 miles away.
The property is zoned CC under the 2024 City Center designation. Supported development frameworks include residential construction of up to four stories or a three-over-one configuration with ground-floor retail and multifamily units above. The site is positioned across from a school and records traffic counts averaging more than 21,000 vehicles per day.
Connectivity includes access within 1 mile of the I-75 and I-696 interchange, 15 minutes from Downtown Detroit, and 18 minutes from the Detroit-Windsor Tunnel. The regional train station is 3 miles away, the airport is 6 miles away, and the commercial waterway is 8 miles away.
Key Highlights
- 0.455‑acre dual‑parcel commercial land offering
- 1,973‑square‑foot concrete block building plus adjacent vacant lot
- 175 feet of frontage on John R Road
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
$21,230
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
3.54%
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%
$424,600
$424.6K
Cap Rate 7%
$303,286
$303.3K
Cap Rate 9%
$235,889
$235.9K
Market Conditions
NOI Build-Up for 1,973 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
$33.1K $16.80/SF
− Vacancy
−$2.8K −$1.43/SF
EGI
$30.3K $15.37/SF
− OpEx
−$9.1K −$4.61/SF
NOI
$21.2K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$424,600
Cap Rate 7%
$303,286
Cap Rate 9%
$235,889
Alternative Uses
Best Use
Retail
$303.3K
$265.4K – $353.8K
NOI $21,230 @ 7.0% cap · market cap 3.54%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$425.6K
$372.4K – $496.5K
NOI $29,789 @ 7.0% cap · market cap 4.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
937
Businesses Nearby
185k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 35%
Apparel 31%
Shops & Services 27%
Electronics 7%
T.J. Maxx
Apparel
56,794 visits/mo
0.5 miles
Michaels
Shops & Services
43,159 visits/mo
0.5 miles
Chili's Grill & Bar
Dining
22,741 visits/mo
0.5 miles
Panera Bread
Dining
19,563 visits/mo
0.4 miles
Starbucks
Dining
15,777 visits/mo
0.4 miles
Demographics for 48071, MI
28,468
Population
14,690
Households
1.9
Avg Household Size
39
Median Age
32%
College-Educated
89%
High-School Grad
7.1 sq mi
ZIP Area
4,010
Density / Sq Mi
$66,726
Median Household Income
$49,151
Median Earnings
$1,138
Median Rent
$190,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Dual-parcel redevelopment site with an existing commercial building, adjacent vacant lot, and CC City Center zoning.
Where is this commercial land located?
The property is located at 999999999 26529-26545 John R Rd Madison Heights, 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: 0.455‑acre dual‑parcel commercial land offering; 1,973‑square‑foot concrete block building plus adjacent vacant lot; 175 feet of frontage on John R Road
