Dearborn Commercial Property on
For Sale
$3,300,000
15241 Michigan Ave, Dearborn, MI 48126
Prime commercial opportunity in the heart of Dearborn, Michigan.
Property Size14,000 SF
Price / SF$235.71
Days on Market105
Property Features for 15241 Michigan Ave
General Information
Standard status
Active
Size
14,000 SF
Property subtype
Commercial
Building Details
Year Built
1955
Listing Agency:
RE/MAX Team 2000
(313) 561-0900
Listed By:
Bilal A Hamie · License #360292
(313) 561-0900
Source:
Elliman
Added: Apr 24
Changed: Jul 10
Last Checked: Aug 6 at 8:52AM
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, located in Dearborn, offers over 14,000 square feet of space and is ready for a new business. Situated in a growing area with high visibility, the property presents potential for expansion and success. It is zoned BB – GENERAL BUSINESS DISTRICT, allowing for a variety of commercial uses such as a medical center or retail. The property includes a newly installed fire suppression system, new front glass windows, a newer HVAC system, and a large parking lot.
Key Highlights
- Prime commercial location in the heart of Dearborn.
- Turn‑key condition, ready for immediate business operation.
- Large 14,000+ sqft space with potential for expansion.
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
$172,437
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
5.23%
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%
$3,448,740
$3.4M
Cap Rate 7%
$2,463,386
$2.5M
Cap Rate 9%
$1,915,967
$1.9M
Market Conditions
NOI Build-Up for 14,000 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
$260.4K $18.60/SF
− Vacancy
−$14.1K −$1.00/SF
EGI
$246.3K $17.60/SF
− OpEx
−$73.9K −$5.28/SF
NOI
$172.4K $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%
$3,448,740
Cap Rate 7%
$2,463,386
Cap Rate 9%
$1,915,967
Alternative Uses
Best Use
Retail
$2.46M
$2.16M – $2.87M
NOI $172,437 @ 7.0% cap · market cap 5.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.09M
$2.70M – $3.60M
NOI $216,192 @ 7.0% cap · market cap 6.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
654
Businesses Nearby
129k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 54%
Dining 23%
Shops & Services 21%
Apparel 1%
Kroger
Groceries
69,327 visits/mo
0.1 miles
McDonald's
Dining
19,756 visits/mo
0.3 miles
Burger King
Dining
9,739 visits/mo
0.3 miles
Dollar General
Shops & Services
9,126 visits/mo
0.4 miles
Citizens Bank
Shops & Services
4,103 visits/mo
0.3 miles
Demographics for 48126, MI
55,863
Population
16,919
Households
3.3
Avg Household Size
28
Median Age
24%
College-Educated
74%
High-School Grad
8.4 sq mi
ZIP Area
6,650
Density / Sq Mi
$42,353
Median Household Income
$27,724
Median Earnings
$1,222
Median Rent
$200,600
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Prime commercial opportunity in the heart of Dearborn, Michigan.
Where is this retail space located?
The property is located at 15241 Michigan Ave Dearborn, MI.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: Prime commercial location in the heart of Dearborn.; Turn‑key condition, ready for immediate business operation.; Large 14,000+ sqft space with potential for expansion.
