Dearborn Renovated Commercial Property For
For Sale
$429,000
10306 DIX, Dearborn, MI 48120
Prime, renovated commercial property in Dearborn with high visibility.
Property Size1,725 SF
Lot Size0.10 Acres
Price / SF$248.70
Days on Market641
Property Features for 10306 DIX
General Information
Standard status
Active
Size
1,725 SF
Lot size
0.10 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$3,896
Building Details
Year Built
1936
Listing Agency:
RE/MAX Team 2000
(313) 561-0900
Listed By:
Yousef Beydoun · License #6501354088
(313) 561-0900
Source:
Exitrealty
Added: Nov 6, 2024
Changed: Aug 8
Last Checked: Aug 9 at 6:11AM
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 RE/MAX Team 2000
Investment Insights
Based on property information with market context.
This commercial property in Dearborn offers a strategic location in the heavily populated South Dearborn area on Dix Road. The property provides high visibility with exposure to multiple flows of traffic. Originally a medical office, the property has been newly renovated with a modern exterior. A new roof was installed in 2024. On-site parking is available, along with ample street parking. The property is suitable for a variety of uses, including retail space. An additional parking lot across the street is available for sale separately. The property is also available for lease at $2,500. The building size is 1725 square feet.
Key Highlights
- Prime location on heavily populated Dix Road in South Dearborn with high traffic visibility.
- Newly renovated with a modern exterior and a new roof installed in 2024.
- Turnkey investment opportunity** suitable for various uses (originally a medical office).
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
$21,247
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
4.95%
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%
$424,940
$424.9K
Cap Rate 7%
$303,529
$303.5K
Cap Rate 9%
$236,078
$236.1K
Market Conditions
NOI Build-Up for 1,725 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
$32.1K $18.60/SF
− Vacancy
−$1.7K −$1.00/SF
EGI
$30.4K $17.60/SF
− OpEx
−$9.1K −$5.28/SF
NOI
$21.2K $12.32/SF
Area
Dearborn, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$424,940
Cap Rate 7%
$303,529
Cap Rate 9%
$236,078
Alternative Uses
Best Use
Retail
$303.5K
$265.6K – $354.1K
NOI $21,247 @ 7.0% cap · market cap 4.95%
Second Best
Healthcare Medical
$277.5K
$242.8K – $323.8K
NOI $19,425 @ 7.0% cap · market cap 4.53%
Theoretical Best
Office A
$380.5K
$333.0K – $444.0K
NOI $26,638 @ 7.0% cap · market cap 6.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
283
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48120, MI
8,338
Population
2,910
Households
2.9
Avg Household Size
29
Median Age
37%
College-Educated
76%
High-School Grad
4.7 sq mi
ZIP Area
1,774
Density / Sq Mi
$66,667
Median Household Income
$48,170
Median Earnings
$1,407
Median Rent
$236,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Prime, renovated commercial property in Dearborn with high visibility.
Where is this medical office space located?
The property is located at 10306 DIX Dearborn, MI.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: Prime location on heavily populated Dix Road in South Dearborn with high traffic visibility.; Newly renovated with a modern exterior and a new roof installed in 2024.; Turnkey investment opportunity** suitable for various uses (originally a medical office).
