Updated Subway Restaurant
For Sale
$349,800
22905 Michigan Avenue, Dearborn, MI 48124
Food-service operation with a long-term lease and 2023 interior updates.
Property Size1,500 SF
Days on Market113
Property Features for 22905 Michigan Avenue
General Information
Standard status
Active
Size
1,500 SF
Property subtype
Business Opportunity
Zoning
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$2.00
Building Details
Building Size
1,500 SF
Year Built
1980
Year Renovated
2023
Stories
1
Listing Agency:
Century 21 Curran & Oberski
(313) 203-8214
Listed By:
Bill M Darwich · License #6501368264
(313) 203-8214
Source:
Carolbollo
Added: Apr 22
Changed: Aug 10
Last Checked: Aug 11 at 2:38PM
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 Century 21 Curran & Oberski
Investment Insights
Based on property information with market context.
This Subway restaurant business operates from a commercially zoned location at 22905 Michigan Avenue in Dearborn. Interior improvements completed in 2023 include refreshed Subway décor and some newer equipment. The property was built in 1980, while the business is offered with a long-term lease already in place.
The restaurant is positioned on Michigan Avenue near Downtown Dearborn, with Biggby Coffee, Kroger, and Marshalls among the nearby retailers. The offering may suit an owner-operator or investor, as both possibilities are explicitly supported by the existing business and lease structure.
The restaurant is positioned on Michigan Avenue near Downtown Dearborn, with Biggby Coffee, Kroger, and Marshalls among the nearby retailers. The offering may suit an owner-operator or investor, as both possibilities are explicitly supported by the existing business and lease structure.
Key Highlights
- Subway restaurant business at 22905 Michigan Avenue, Dearborn, MI 48124
- Interior updated in 2023 with new Subway décor
- Some newer equipment included
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
$20,520
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
5.87%
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%
$410,400
$410.4K
Cap Rate 7%
$293,143
$293.1K
Cap Rate 9%
$228,000
$228.0K
Market Conditions
NOI Build-Up for 1,500 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
$28.8K $19.20/SF
− Vacancy
−$1.4K −$0.96/SF
EGI
$27.4K $18.24/SF
− OpEx
−$6.8K −$4.56/SF
NOI
$20.5K $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%
$410,400
Cap Rate 7%
$293,143
Cap Rate 9%
$228,000
Alternative Uses
Best Use
Specialty Retail
$293.1K
$256.5K – $342.0K
NOI $20,520 @ 7.0% cap · market cap 5.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$330.9K
$289.5K – $386.1K
NOI $23,163 @ 7.0% cap · market cap 6.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,296
Businesses Nearby
279k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 34%
Groceries 24%
Apparel 17%
Dining 10%
Kroger
Groceries
68,288 visits/mo
0.2 miles
Marshalls
Apparel
32,809 visits/mo
0.1 miles
Staples
Office Supplies
17,789 visits/mo
0.1 miles
Dollar Tree
Shops & Services
16,340 visits/mo
0.2 miles
Five Below
Shops & Services
13,301 visits/mo
0.1 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?
Conventional restaurant - Food-service operation with a long-term lease and 2023 interior updates.
Where is this conventional restaurant located?
The property is located at 22905 Michigan Avenue Dearborn, MI.
What is the asking price?
The asking price for this property is $349,800.
What are key features of this property?
This property features: Subway restaurant business at 22905 Michigan Avenue, Dearborn, MI 48124; Interior updated in 2023 with new Subway décor; Some newer equipment included
