Freestanding Storefront with
For Sale
$1,100,000
22402 Van Born Rd, Dearborn Heights, MI 48125
Two-suite retail property combines a built-out restaurant with separately leased commercial space.
Property Size5,300 SF
Price / SF$275
Days on Market91
Property Features for 22402 Van Born Rd
General Information
Standard status
Active
Size
5,300 SF
Class
C
Property subtype
Retail
Occupancy
33%
Additional Details
Liquor License
Yes
Building Details
Building Size
5,300 SF
Year Built
1990
Year Renovated
2021
Buildings
1
Tenancy
Multi
Listing Agency:
Thomas Duke Company
(517) 304-1114
Listed By:
Jordan Schafer
(517) 304-1114
Source:
Thomasduke
Added: Jun 2
Changed: Aug 30
Last Checked: Aug 30 at 6:21PM
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 Thomas Duke Company
Investment Insights
Based on property information with market context.
Built in 1990, this freestanding retail building at 22402 Van Born Rd includes two suites totaling 4,000 SF available and 1,300 SF leased. One suite is configured as an owner-operated restaurant and is offered with a liquor license, FF&E, and capital equipment. The second suite provides an existing leased component within the same property.
Property improvements include a new roof and parking lot completed in 2021. Ample parking supports the building, while the restaurant configuration provides an established commercial setup for an owner-user. The asset combines retail space, an existing lease, and restaurant-related equipment in a single Dearborn Heights property.
Property improvements include a new roof and parking lot completed in 2021. Ample parking supports the building, while the restaurant configuration provides an established commercial setup for an owner-user. The asset combines retail space, an existing lease, and restaurant-related equipment in a single Dearborn Heights property.
Key Highlights
- Two‑suite freestanding retail building
- 4,000 SF available with 1,300 SF leased
- Built‑out restaurant suite includes liquor license, FF&E, and capital equipment
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
$51,840
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
4.71%
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%
$1,036,800
$1.0M
Cap Rate 7%
$740,571
$740.6K
Cap Rate 9%
$576,000
$576.0K
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
$72.0K $18.00/SF
− Vacancy
−$2.9K −$0.72/SF
EGI
$69.1K $17.28/SF
− OpEx
−$17.3K −$4.32/SF
NOI
$51.8K $12.96/SF
Area
Wayne County, MI
Vacancy
4.00%
Lease Rate
$18.00 /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%
$1,036,800
Cap Rate 7%
$740,571
Cap Rate 9%
$576,000
Alternative Uses
Best Use
Specialty Retail
$740.6K
$648.0K – $864.0K
NOI $51,840 @ 7.0% cap · market cap 4.71%
Second Best
Retail
$541.4K
$473.8K – $631.7K
NOI $37,901 @ 7.0% cap · market cap 3.45%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
32.5%
Occupancy
Multi-tenant
Tenancy
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
252
Businesses Nearby
44k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 78%
Dining 20%
Electronics 2%
Tim Hortons
Dining
8,950 visits/mo
0.5 miles
Exxon
Shops & Services
7,318 visits/mo
0.2 miles
Family Dollar
Shops & Services
7,014 visits/mo
0.3 miles
Chase Bank
Shops & Services
6,834 visits/mo
0.3 miles
O'Reilly Auto Parts
Shops & Services
4,922 visits/mo
0.3 miles
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Two-suite retail property combines a built-out restaurant with separately leased commercial space.
Where is this storefront property located?
The property is located at 22402 Van Born Rd Dearborn Heights, MI.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Two‑suite freestanding retail building; 4,000 SF available with 1,300 SF leased; Built‑out restaurant suite includes liquor license, FF&E, and capital equipment
