Climate-Controlled Warehouse
For Sale
$1,225,000
1205 Auto Avenue, Harbor Springs, MI 49740
Commercial/Industrial, Harbor Springs, MI
Property Size4,320 SF
Price / SF$283.56
Days on Market346
Property Features for 1205 Auto Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
LTT B-2
Window features
Vinyl Frames
Elementary school district
Harbor Springs
Middle school district
Harbor Springs
High school district
Harbor Springs
Directions
E. on West Conway Rd. to left on Auto Ave.
Subdivision
Little Traverse
Standard status
Active
APN
08-16-14-100-022
Size
4,320 SF
Taxes and HOA fees
Tax Description
PART OF COM AT W 1/4 COR OF SECTION 14, TH N90o00'00"E 1383.35 FTALG E/W 1/4 OF SD SEC, TH N00o22'29
HOA Fee
$800 Monthly
Legal Description
PART OF COM AT W 1/4 COR OF SECTION 14, TH N90o00'00"E 1383.35 FTALG E/W 1/4 OF SD SEC, TH N00o22'29
Utilities
Heating system
Natural Gas
Water source
Well
Amenities
restrooms
irrigated green space
wide paved drive
climate-controlled in-floor radiant heat
gated community
Building Details
Year built
2024
Roof type
Metal
Listing Agency:
Graham Real Estate
(231) 526-6251
Listed By:
Heidi Kresnak
(231) 838-1977
Added: Sep 29, 2025
Changed: Aug 19
Last Checked: Sep 9 at 10:06PM
MLS# 474841
Copyright © 2026 Northern Michigan MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 4,320-square-foot warehouse property is configured for automotive storage and collection use, with garage layouts ranging from 1,280 square feet to 6,000 square feet. The 2024 construction includes climate control, in-floor radiant heat, restrooms, a metal roof, and natural gas service.
Located at 1205 Auto Avenue in Harbor Springs, the property occupies a gated setting with irrigated green space and a wide paved drive designed for maneuvering trailers and car haulers. Well water serves the site, and the property is zoned LTT B-2.
Located at 1205 Auto Avenue in Harbor Springs, the property occupies a gated setting with irrigated green space and a wide paved drive designed for maneuvering trailers and car haulers. Well water serves the site, and the property is zoned LTT B-2.
Key Highlights
- Garage configurations range from 1,280 square feet to 6,000 square feet
- 4,320‑square‑foot warehouse property built in 2024
- Climate‑controlled space with in‑floor radiant heat
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
$68,436
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
5.59%
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%
$1,368,720
$1.4M
Cap Rate 7%
$977,657
$977.7K
Cap Rate 9%
$760,400
$760.4K
Market Conditions
NOI Build-Up for 4,320 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
$86.6K $20.04/SF
− Vacancy
−$6.1K −$1.40/SF
EGI
$80.5K $18.64/SF
− OpEx
−$12.1K −$2.80/SF
NOI
$68.4K $15.84/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /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%
$1,368,720
Cap Rate 7%
$977,657
Cap Rate 9%
$760,400
Alternative Uses
Best Use
Warehouse
$977.7K
$855.5K – $1.14M
NOI $68,436 @ 7.0% cap · market cap 5.59%
Second Best
Industrial
$805.1K
$704.5K – $939.3K
NOI $56,359 @ 7.0% cap · market cap 4.60%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49740, MI
7,511
Population
6,057
Households
1.2
Avg Household Size
55
Median Age
46%
College-Educated
97%
High-School Grad
124.9 sq mi
ZIP Area
60
Density / Sq Mi
$85,230
Median Household Income
$38,820
Median Earnings
$997
Median Rent
$332,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Gated commercial setting with restrooms, paved circulation, and in-floor radiant heat.
Where is this warehouse located?
The property is located at 1205 Auto Avenue Harbor Springs, MI.
What is the asking price?
The asking price for this property is $1,225,000.
What are key features of this property?
This property features: Garage configurations range from 1,280 square feet to 6,000 square feet; 4,320‑square‑foot warehouse property built in 2024; Climate‑controlled space with in‑floor radiant heat
