Calculate cap rates and net operating income for commercial properties in Michigan. Compare your results against Michigan's secondary market benchmarks sourced from CBRE H2 2025.
Michigan's CRE is anchored by the auto industry (GM, Ford, Stellantis headquarters in metro Detroit), with significant EV transition investment reshaping industrial demand. Grand Rapids has emerged as a strong secondary market. Ann Arbor benefits from University of Michigan and a growing tech/startup ecosystem. Detroit's suburban markets (Troy, Southfield, Auburn Hills) are significantly stronger than the city core.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.5% | 7.5% |
| Industrial | 5.5% | 7.5% |
| Retail | 6.0% | 8.5% |
| Office | 7.0% | 10.0% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Michigan cap rates range from 5.5–7.5% for multifamily and industrial, 6.0–8.5% for retail, and 7.0–10.0% for office. Detroit's suburban markets (Oakland County, Macomb County) tend toward the lower end while city-of-Detroit assets can trade at significantly higher yields reflecting perceived risk.
Michigan's auto industry transition to electric vehicles is creating massive industrial demand for EV battery manufacturing plants (Ford's BlueOval Battery Park, GM's Ultium Cells facilities), EV component suppliers, and charging infrastructure manufacturers. This has driven billions in industrial investment and increased demand for large-format manufacturing sites across the state.
Grand Rapids has consistently ranked as one of the top performing small metro markets in the Midwest. It has a diversified economy (office furniture manufacturing, healthcare, food processing, aerospace), a growing population, and lower cap rates than Detroit reflecting stronger fundamentals. Medical Mile in downtown Grand Rapids anchors healthcare real estate demand.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.