Auto Shop Building with Overhead
For Sale
$799,900
20916 Van Born Rd, Dearborn Heights, MI 48125
4,000 sq ft auto shop with storefront, offices, and a 16' overhead door, supported by extensive concrete parking.
Property Size4,000 SF
Price / SF$199.98
Days on Market31
Property Features for 20916 Van Born Rd
General Information
Standard status
Active
Size
4,000 SF
Total Parking Spaces
14
Property subtype
Commercial
Additional Details
Highway Access
Yes
Drive-In Doors
1
Taxes and HOA fees
Annual Taxes
$8,098
Building Details
Building Size
4,000 SF
Year Built
1970
Tenancy
Single
Listing Agency:
(313) 673-5314
Listed By:
Karissa O'Neill
(313) 673-5314
Source:
Elliman
Added: Jul 13
Changed: Aug 8
Last Checked: Aug 12 at 7:35AM
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 Karissa O'Neill
Investment Insights
Based on property information with market context.
This 4,000 square foot auto shop building is designed for practical daily operations and flexible use. The layout includes a customer-facing storefront, private office space, a kitchen/break room, and three restrooms. A substantial service area is anchored by a 16' overhead door, supporting a wide range of equipment, vehicles, and specialized workflows. The property has been maintained and upgraded with major capital improvements completed within the last ten years, including a newer roof, furnace, rooftop HVAC unit, concrete parking lot, and enhanced exterior lighting.
The building is set on a high-traffic thoroughfare with approximately 170 feet of prominent frontage, and it provides convenient access to I-94.
Externally, the property offers substantial concrete parking with nine spaces on the east side and five spaces on the west side, along with an enclosed lot intended for fleet vehicles, equipment storage, or overflow capacity. The property is currently occupied by a tire repair business; this offering is for the real estate only, as the operating business is marketed separately by another broker and is not included in the purchase price.
The building is set on a high-traffic thoroughfare with approximately 170 feet of prominent frontage, and it provides convenient access to I-94.
Externally, the property offers substantial concrete parking with nine spaces on the east side and five spaces on the west side, along with an enclosed lot intended for fleet vehicles, equipment storage, or overflow capacity. The property is currently occupied by a tire repair business; this offering is for the real estate only, as the operating business is marketed separately by another broker and is not included in the purchase price.
Key Highlights
- 4,000 SF commercial building built in 1970 with prominent 170 ft frontage on a high‑traffic thoroughfare
- Easy access to I‑94 plus a 16' overhead door serving an expansive service area
- Upgrades from the last 10 years include newer roof, furnace, rooftop HVAC unit, concrete parking lot, and enhanced exterior lighting
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
$37,901
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
4.74%
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%
$758,020
$758.0K
Cap Rate 7%
$541,443
$541.4K
Cap Rate 9%
$421,122
$421.1K
Market Conditions
NOI Build-Up for 4,000 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
$57.6K $14.40/SF
− Vacancy
−$3.5K −$0.86/SF
EGI
$54.1K $13.54/SF
− OpEx
−$16.2K −$4.06/SF
NOI
$37.9K $9.48/SF
Area
Wayne County, MI
Vacancy
6.00%
Lease Rate
$14.40 /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%
$758,020
Cap Rate 7%
$541,443
Cap Rate 9%
$421,122
Alternative Uses
Best Use
Retail
$541.4K
$473.8K – $631.7K
NOI $37,901 @ 7.0% cap · market cap 4.74%
Second Best
Flex RnD
$360.5K
$315.5K – $420.6K
NOI $25,238 @ 7.0% cap · market cap 3.16%
Theoretical Best
Specialty Retail
$740.6K
$648.0K – $864.0K
NOI $51,840 @ 7.0% cap · market cap 6.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Drive-in doors
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
265
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48125, MI
22,070
Population
8,791
Households
2.5
Avg Household Size
38
Median Age
16%
College-Educated
87%
High-School Grad
4.0 sq mi
ZIP Area
5,518
Density / Sq Mi
$59,534
Median Household Income
$38,241
Median Earnings
$1,298
Median Rent
$119,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- ALCOLOCK Ignition Interlock — 21194 van born rd, dearborn heights, mi 48125
- BestDrive Commercial Tire Center — 22100 Trolley Industrial Dr, Taylor, MI 48180
- Aaron's Complete Fleet Services — 20300 Lorne St, Taylor, MI 48180
- Gonzalez & Sons — 21330 Van Born Rd, Dearborn Heights, MI 48125
- ADICA Fleet Services — 20401 Trolley Industrial Dr, Taylor, MI 48180
Frequently Asked Questions
What type of property is this?
Auto shop - 4,000 sq ft auto shop with storefront, offices, and a 16' overhead door, supported by extensive concrete parking.
Where is this auto shop located?
The property is located at 20916 Van Born Rd Dearborn Heights, MI.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: 4,000 SF commercial building built in 1970 with prominent 170 ft frontage on a high‑traffic thoroughfare; Easy access to I‑94 plus a 16' overhead door serving an expansive service area; Upgrades from the last 10 years include newer roof, furnace, rooftop HVAC unit, concrete parking lot, and enhanced exterior lighting
