Industrial Distribution Center For
For Sale
Contact for pricing
2401 S Gulley Rd, Dearborn, MI 48124
Industrial distribution center offered for sale with warehouse-focused functionality for logistics and storage users.
Property Size375,812 SF
Price / SF$85.15
Days on Market61
Property Features for 2401 S Gulley Rd
General Information
Standard status
Active
Size
375,812 SF
Property subtype
Industrial
Zoning
1A - Light Industrial, 1B - Medium Industrial
Building Details
Year Built
1968
Listing Agency:
Lee & Associates - Detroit
Listed By:
Jon Savoy · License #MI 6502335133
Source:
Crexi
Added: Jun 12
Changed: Aug 8
Last Checked: Jun 20 at 2:23AM
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 Lee & Associates - Detroit
Investment Insights
Based on property information with market context.
This for-sale industrial distribution center is a warehouse-type commercial property presented for owners and operators seeking dedicated logistics and storage space. The listing provides the property’s overall industrial profile and warehouse classification, with the availability presented as a sale opportunity.
The asset is located at 2401 S Gulley Rd in Dearborn, Michigan, and is described as being west of M-24. The property is offered through a single listing price.
For tenant and buyer consideration, this type of warehouse property is typically suited to organizations that need straightforward space for distribution, warehousing, and related industrial operations. Prospective users and investors can evaluate the site for compatibility with their facility requirements based on the warehouse/distribution designation provided in the materials. As with any industrial purchase, diligence should focus on confirming the specific building configuration and any site improvements needed for the intended operating model before finalizing next steps.
The asset is located at 2401 S Gulley Rd in Dearborn, Michigan, and is described as being west of M-24. The property is offered through a single listing price.
For tenant and buyer consideration, this type of warehouse property is typically suited to organizations that need straightforward space for distribution, warehousing, and related industrial operations. Prospective users and investors can evaluate the site for compatibility with their facility requirements based on the warehouse/distribution designation provided in the materials. As with any industrial purchase, diligence should focus on confirming the specific building configuration and any site improvements needed for the intended operating model before finalizing next steps.
Key Highlights
- Industrial distribution center built in 1968
- Offered for sale at an asking price of $32,000,000
- Located west of M‑24
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
$2,350,262
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
7.34%
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%
$47,005,240
$47.0M
Cap Rate 7%
$33,575,171
$33.6M
Cap Rate 9%
$26,114,022
$26.1M
Market Conditions
NOI Build-Up for 375,812 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
$2.89M $7.68/SF
− Vacancy
−$121.2K −$0.32/SF
EGI
$2.77M $7.36/SF
− OpEx
−$414.8K −$1.10/SF
NOI
$2.35M $6.25/SF
Area
Dearborn, MI
Vacancy
4.20%
Lease Rate
$7.68 /SF/Yr
Expense Ratio
15.00%
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%
$47,005,240
Cap Rate 7%
$33,575,171
Cap Rate 9%
$26,114,022
Alternative Uses
Best Use
Warehouse
$33.58M
$29.38M – $39.17M
NOI $2,350,262 @ 7.0% cap · market cap 7.34%
Second Best
Industrial
$31.51M
$27.57M – $36.76M
NOI $2,205,387 @ 7.0% cap · market cap 6.89%
Theoretical Best
Office A
$82.91M
$72.54M – $96.72M
NOI $5,803,391 @ 7.0% cap · market cap 18.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
526
Businesses Nearby
Explore this area
Business Placement
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 Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - Industrial distribution center offered for sale with warehouse-focused functionality for logistics and storage users.
Where is this distribution center located?
The property is located at 2401 S Gulley Rd Dearborn, MI.
What is the asking price?
The asking price for this property is $32,000,000.
What are key features of this property?
This property features: Industrial distribution center built in 1968; Offered for sale at an asking price of $32,000,000; Located west of M‑24
