Office Units with
For Sale
Contact for pricing
Pending
23954 Michigan Ave, Dearborn, MI 48124
Two-building commercial property with private parking and space that can be configured into additional units.
Property Size6,948 SF
Days on Market562
Property Features for 23954 Michigan Ave
General Information
Standard status
Pending
Size
6,948 SF
Class
C
Total Parking Spaces
4
Property subtype
Retail, Office
Zoning
BB
Occupancy
50%
Lease Type
Net
Investment Type
Value Add
Site & Location
Corner Location
Yes
Anchor Co-Tenants
H&R Block
Amenities
high-visibility billboard
private parking lot
Building Details
Year Built
1954
Buildings
2
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
Det Properties
Listed By:
Joel Karboske · License #6504431925
Source:
Crexi
Added: Feb 14, 2025
Changed: Aug 30
Last Checked: Jul 16 at 9:51PM
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 Det Properties
Investment Insights
Based on property information with market context.
This 6,984-square-foot office property comprises two buildings with distinct leasing configurations. The corner building is occupied by H&R Block, which has maintained occupancy for over 30 years and recently renewed its lease. H&R Block also leases the billboard positioned above the property. The second building provides flexible office space and can be divided into two additional units, supporting a range of layouts for medical offices, studios, retail shops, or professional services.
A private parking lot behind the buildings serves tenants and visitors. The property is located on Michigan Avenue in Dearborn, Michigan, within a commercial business district and at a corner location. Its combination of existing tenancy, billboard income, divisible space, and on-site parking creates a varied office property configuration.
A private parking lot behind the buildings serves tenants and visitors. The property is located on Michigan Avenue in Dearborn, Michigan, within a commercial business district and at a corner location. Its combination of existing tenancy, billboard income, divisible space, and on-site parking creates a varied office property configuration.
Key Highlights
- 6,984 SF office property comprising two buildings
- Corner building occupied by H&R Block for over 30 years
- H&R Block recently renewed its lease
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
$85,578
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
5.19%
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%
$1,711,560
$1.7M
Cap Rate 7%
$1,222,543
$1.2M
Cap Rate 9%
$950,867
$950.9K
Market Conditions
NOI Build-Up for 6,948 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
$129.2K $18.60/SF
− Vacancy
−$7.0K −$1.00/SF
EGI
$122.3K $17.60/SF
− OpEx
−$36.7K −$5.28/SF
NOI
$85.6K $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%
$1,711,560
Cap Rate 7%
$1,222,543
Cap Rate 9%
$950,867
Alternative Uses
Best Use
Retail
$1.22M
$1.07M – $1.43M
NOI $85,578 @ 7.0% cap · market cap 5.19%
Second Best
Office B
$1.09M
$957.1K – $1.28M
NOI $76,570 @ 7.0% cap · market cap 4.64%
Theoretical Best
Office A
$1.53M
$1.34M – $1.79M
NOI $107,293 @ 7.0% cap · market cap 6.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
927
Businesses Nearby
Explore this area
Business Placement
Demographics for 48124, MI
34,134
Population
14,787
Households
2.3
Avg Household Size
39
Median Age
40%
College-Educated
94%
High-School Grad
8.8 sq mi
ZIP Area
3,879
Density / Sq Mi
$78,353
Median Household Income
$49,103
Median Earnings
$1,280
Median Rent
$192,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Two-building commercial property with private parking and space that can be configured into additional units.
Where is this office units located?
The property is located at 23954 Michigan Ave Dearborn, MI.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: 6,984 SF office property comprising two buildings; Corner building occupied by H&R Block for over 30 years; H&R Block recently renewed its lease
