Commercial Real Estate in Detroit offers a unique opportunity for investors to tap into the city's rich history and cultural significance. As a major city in the Midwestern United States, Detroit has a diverse economy with a strong presence of automotive, finance, healthcare, education, and technology industries. Commercial Real Estate in Detroit can represent a wide range of investments, from office spaces to retail centers, and from industrial properties to hotels. With its strategic location along the Detroit River, the city offers easy access to major transportation hubs, including the Detroit Metropolitan Wayne County Airport and the Amtrak station in New Center. Detroit's infrastructure is also supported by freight railroads, airports, and freeways, making it an attractive location for businesses that rely on logistics and transportation. The city's amenities, such as sports facilities, parks, and cultural institutions, also contribute to its appeal as a great place to live, work, and invest.
Detroit's Commercial Real Estate market offers 348 listings, with an average price per square foot of $193 USD and an average size of 59,225 square feet. The largest property available is 514,273 square feet. With an average cap rate of 8.98%, Commercial Real Estate in Detroit can provide a stable source of income for investors. In addition to Commercial Real Estate, Detroit also offers Industrial Properties, Apartment Buildings, Office Properties, and Hotels, each with its own unique characteristics and investment opportunities. Industrial Properties in Detroit are ideal for businesses that require easy access to transportation hubs and a skilled workforce. Apartment Buildings in Detroit offer a range of options for residents, from luxury high-rises to affordable housing. Office Properties in Detroit provide a professional environment for businesses, with many located in the downtown area. Hotels in Detroit cater to tourists and business travelers, offering a range of amenities and services.
What financing options are available for purchasing commercial real estate?
When it comes to financing options for purchasing commercial real estate in Detroit, there are several alternatives to consider, including:
- Traditional bank loans, which offer competitive interest rates and flexible repayment terms, making them a popular choice for many investors.
- Commercial mortgage-backed securities (CMBS), which provide access to a large pool of capital and can be used to finance a wide range of commercial properties.
- Private money lenders, which offer short-term, high-interest loans that can be used to finance fix-and-flip projects or other value-add opportunities.
How do cap rates factor into commercial real estate purchases?
When considering commercial real estate purchases in Detroit, understanding cap rates is crucial. The average cap rate in Detroit is 8.98%, which can help investors gauge the potential return on investment for a property, making it a vital factor in their purchasing decisions; to learn more about cap rates, check out our article on what is a cap rate.
With 348 available listings of commercial real estate in Detroit, investors have a range of options to choose from, each with its own unique characteristics, such as average price per square foot of $193 USD and average size of 59,225 square feet, as well as a largest size of 514,273 square feet, making it essential to carefully evaluate cap rates to ensure a profitable investment.
What is considered a commercial property?
A commercial property in Detroit, Michigan is typically defined as a building or land used for business or commercial purposes, such as office spaces, retail stores, restaurants, warehouses, and industrial facilities, which can be found in various neighborhoods and districts throughout the city, including Downtown, Midtown, Corktown, and New Center.
With 348 available listings of commercial real estate in Detroit, investors and business owners can find opportunities that suit their needs, ranging from small office spaces to large industrial facilities, with average prices per square foot of $193 USD, average sizes of 59,225 square feet, and largest sizes of 514,273 square feet, offering a cap rate of 8.98%.
