Downtown Dearborn Restaurant For
For Sale
Contact for pricing
22180 Michigan Ave, Dearborn, MI 48124
3,077 sq ft restaurant in the heart of Dearborn.
Property Size3,077 SF
Price / SF$438.74
Days on Market287
Property Features for 22180 Michigan Ave
General Information
Standard status
Active
Size
3,077 SF
Property subtype
Retail
Zoning
UG-10-FBC
Building Details
Year Built
1927
Listing Agency:
Van Esley Real Estate
(734) 459-7570
Listed By:
David Misko · License #MI
Source:
Crexi
Added: Nov 6, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:36AM
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 Van Esley Real Estate
Investment Insights
Based on property information with market context.
Located in the heart of Downtown Dearborn, this 3,077 sq ft restaurant is available for sale. Situated just two doors down from Buddy's Pizza, the property benefits from a large public parking lot located behind the building. The restaurant is currently leased through 7/31/2027. The equipment and fixtures are not included in the sale. Zoning allows for expansion upwards of 6-10 stories.
Key Highlights
- Prime Downtown Dearborn Location: High‑traffic area, just two doors down from Buddy's Pizza.
- Existing Lease in Place: Leased through 7/31/2027, providing immediate income.
- Sizeable Restaurant Space: 3,077 sq ft suitable for restaurant operations.
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
$42,093
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
3.12%
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%
$841,860
$841.9K
Cap Rate 7%
$601,329
$601.3K
Cap Rate 9%
$467,700
$467.7K
Market Conditions
NOI Build-Up for 3,077 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
$59.1K $19.20/SF
− Vacancy
−$3.0K −$0.96/SF
EGI
$56.1K $18.24/SF
− OpEx
−$14.0K −$4.56/SF
NOI
$42.1K $13.68/SF
Area
Dearborn, MI
Vacancy
5.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$841,860
Cap Rate 7%
$601,329
Cap Rate 9%
$467,700
Alternative Uses
Best Use
Specialty Retail
$601.3K
$526.2K – $701.6K
NOI $42,093 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$678.8K
$594.0K – $791.9K
NOI $47,516 @ 7.0% cap · market cap 3.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,493
Businesses Nearby
157k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Shops & Services 29%
Home Improvements & Furnishings 11%
Apparel 10%
Buffalo Wild Wings
Dining
18,533 visits/mo
0.0 miles
Buddy's Pizza
Dining
15,252 visits/mo
0.1 miles
Mobil
Shops & Services
12,157 visits/mo
0.3 miles
Comerica Bank
Shops & Services
11,306 visits/mo
0.1 miles
Harbor Freight Tools
Home Improvements & Furnishings
10,799 visits/mo
0.3 miles
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - 3,077 sq ft restaurant in the heart of Dearborn.
Where is this restaurant located?
The property is located at 22180 Michigan Ave Dearborn, MI.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Prime Downtown Dearborn Location: High‑traffic area, just two doors down from Buddy's Pizza.; Existing Lease in Place: Leased through 7/31/2027, providing immediate income.; Sizeable Restaurant Space: 3,077 sq ft suitable for restaurant operations.
