Built-Out Commercial
For Sale
$100,000
22701 Michigan Avenue, Dearborn, MI 48124
Established restaurant-ready space with storefront signage and customer parking in a busy Dearborn commercial corridor.
Property Size1,200 SF
Price / SF$83.33
Days on Market22
Property Features for 22701 Michigan Avenue
General Information
Standard status
Active
Size
1,200 SF
Property subtype
Commercial
Zoning
Commercial, Multiple
Taxes and HOA fees
Annual Taxes
$20,470
Building Details
Building Size
1,200 SF
Year Built
1925
Listing Agency:
Keller Williams Legacy
(313) 752-0000
Listed By:
Nick Jaafar
Source:
Irishhillsfivestarhomes
Added: Aug 2
Changed: Aug 23
Last Checked: Aug 23 at 2:35AM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
This 1,200-square-foot commercial kitchen space is fully built out for restaurant use and includes storefront signage and customer parking. The property is positioned along Michigan Avenue in Dearborn’s West Dearborn area, within a high-traffic commercial corridor.
The sale excludes the current business name, inventory, and existing equipment and trade fixtures, including refrigeration, prep tables, sinks, shelving, HVAC, and point-of-sale components. The current lease structure is NNN, with the monthly lease amount excluded from this summary.
The sale excludes the current business name, inventory, and existing equipment and trade fixtures, including refrigeration, prep tables, sinks, shelving, HVAC, and point-of-sale components. The current lease structure is NNN, with the monthly lease amount excluded from this summary.
Key Highlights
- 1,200 SF fully built‑out commercial kitchen space
- Storefront signage along Michigan Avenue
- Customer parking available
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
$7,042
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
7.04%
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%
$140,840
$140.8K
Cap Rate 7%
$100,600
$100.6K
Cap Rate 9%
$78,244
$78.2K
Market Conditions
NOI Build-Up for 1,200 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
$10.5K $8.76/SF
− Vacancy
−$452 −$0.38/SF
EGI
$10.1K $8.38/SF
− OpEx
−$3.0K −$2.51/SF
NOI
$7.0K $5.87/SF
Area
Dearborn, MI
Vacancy
4.30%
Lease Rate
$8.76 /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%
$140,840
Cap Rate 7%
$100,600
Cap Rate 9%
$78,244
Alternative Uses
Best Use
Specialty Retail
$234.5K
$205.2K – $273.6K
NOI $16,416 @ 7.0% cap · market cap 16.42%
Second Best
Retail
$211.1K
$184.8K – $246.3K
NOI $14,780 @ 7.0% cap · market cap 14.78%
Theoretical Best
Office A
$264.7K
$231.6K – $308.9K
NOI $18,531 @ 7.0% cap · market cap 18.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,642
Businesses Nearby
321k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 26%
Dining 24%
Groceries 21%
Apparel 15%
Kroger
Groceries
68,288 visits/mo
0.4 miles
Marshalls
Apparel
32,809 visits/mo
0.2 miles
Buffalo Wild Wings
Dining
18,533 visits/mo
0.4 miles
Staples
Office Supplies
17,789 visits/mo
0.3 miles
Dollar Tree
Shops & Services
16,340 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial kitchen - Established restaurant-ready space with storefront signage and customer parking in a busy Dearborn commercial corridor.
Where is this commercial kitchen located?
The property is located at 22701 Michigan Avenue Dearborn, MI.
What is the asking price?
The asking price for this property is $100,000.
What are key features of this property?
This property features: 1,200 SF fully built‑out commercial kitchen space; Storefront signage along Michigan Avenue; Customer parking available
