Updated Retail
For Sale
Contact for pricing
986 Southfield Road, Dearborn, MI 48146
Leased retail building with recent major updates and versatile zoning for a variety of commercial uses.
Property Size1,440 SF
Price / SF$208.33
Days on Market384
Property Features for 986 Southfield Road
General Information
Standard status
Active
Size
1,440 SF
Property subtype
Retail
Building Details
Year Built
1985
Listing Agency:
CENTURY 21 Curran & Oberski Dearborn Heights
(313) 274-7200
Listed By:
Leen Slim · License #460081
Source:
Crexi
Added: Jul 25, 2025
Changed: Aug 8
Last Checked: Jul 21 at 11:00AM
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 Dearborn Heights
Investment Insights
Based on property information with market context.
This for-sale retail building is configured to support commercial activity and is currently leased. The property has received recent improvements, including a new roof, new water heater, updated A/C, and new floors. The overall condition reflects an emphasis on updated interior finishes and building systems.
The property is offered with versatile zoning, which can support a variety of commercial endeavors. Buyer and buyer’s agent are advised that all data and measurements are estimated and should be verified.
For investors or owner-operators seeking a retail asset with ongoing tenancy, the leased status provides current occupancy. The updated building components and retail-oriented improvements may support continued use or future modifications within the bounds of the property’s zoning. Because zoning details and measurements are not specified in the available information, prospective buyers should confirm allowable uses and verify all facts during their due diligence.
The property is offered with versatile zoning, which can support a variety of commercial endeavors. Buyer and buyer’s agent are advised that all data and measurements are estimated and should be verified.
For investors or owner-operators seeking a retail asset with ongoing tenancy, the leased status provides current occupancy. The updated building components and retail-oriented improvements may support continued use or future modifications within the bounds of the property’s zoning. Because zoning details and measurements are not specified in the available information, prospective buyers should confirm allowable uses and verify all facts during their due diligence.
Key Highlights
- Leased retail building built in 1985
- Recent major updates include a new roof, new water heater, new A/C, and new floors
- Versatile zoning supports a variety of commercial endeavors (buyer to verify)
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
$17,736
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
5.91%
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%
$354,720
$354.7K
Cap Rate 7%
$253,371
$253.4K
Cap Rate 9%
$197,067
$197.1K
Market Conditions
NOI Build-Up for 1,440 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
$26.8K $18.60/SF
− Vacancy
−$1.4K −$1.00/SF
EGI
$25.3K $17.60/SF
− OpEx
−$7.6K −$5.28/SF
NOI
$17.7K $12.32/SF
Area
Dearborn, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$354,720
Cap Rate 7%
$253,371
Cap Rate 9%
$197,067
Alternative Uses
Best Use
Retail
$253.4K
$221.7K – $295.6K
NOI $17,736 @ 7.0% cap · market cap 5.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$317.7K
$278.0K – $370.6K
NOI $22,237 @ 7.0% cap · market cap 7.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
488
Businesses Nearby
241k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 68%
Home Improvements & Furnishings 20%
Dining 6%
Hotels & Casinos 5%
Walmart
Superstores
164,560 visits/mo
0.4 miles
The Home Depot
Home Improvements & Furnishings
49,291 visits/mo
0.2 miles
Wendy's
Dining
13,767 visits/mo
0.4 miles
DoubleTree by Hilton
Hotels & Casinos
3,985 visits/mo
0.2 miles
Holiday Inn Express & Suites
Hotels & Casinos
3,308 visits/mo
0.1 miles
Demographics for 48146, MI
40,245
Population
15,874
Households
2.5
Avg Household Size
37
Median Age
11%
College-Educated
81%
High-School Grad
5.8 sq mi
ZIP Area
6,939
Density / Sq Mi
$57,183
Median Household Income
$36,886
Median Earnings
$972
Median Rent
$117,400
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?
Retail space - Leased retail building with recent major updates and versatile zoning for a variety of commercial uses.
Where is this retail space located?
The property is located at 986 Southfield Road Dearborn, MI.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Leased retail building built in 1985; Recent major updates include a new roof, new water heater, new A/C, and new floors; Versatile zoning supports a variety of commercial endeavors (buyer to verify)
