Steel Warehouse with Overhead
For Sale
$995,000
1416 Industry Drive, Traverse City, MI 49696
Commercial, Traverse City, MI
Property Size9,720 SF
Lot Size1.26 Acres
Price / SF$102.37
Days on Market17
Property Features for 1416 Industry Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Industrial, Manufacture/Warehouse
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Parking
24
Parking features
Parking Lot
Exterior features
Steel
Lot features
Industrial Park
Directions
From S Garfield turn right onto W Hammond Rd then left onto Industry Drive.
Subdivision
Grand Traverse
Standard status
Active
Size
9,720 SF
Lot size
1.26 Acres
Taxes and HOA fees
Tax Description
UNIT 26 HAMMOND INDUSTRIAL CENTRE GRAND TRAVERSE CONDO SUBDIVISION NO 160SEC26 T27N R11W
Tax Annual Amount
18536
Legal Description
UNIT 26 HAMMOND INDUSTRIAL CENTRE GRAND TRAVERSE CONDO SUBDIVISION NO 160SEC26 T27N R11W
Utilities
Water source
Private
Building Details
Building materials
Steel
Roof type
Metal
Listing Agency:
REMAX Bayshore - West Shore Dr TC · RE/MAX International
(231) 941-4500
Listed By:
Brooks Wilcox · License #6501452622
(616) 826-5933
Added: Aug 5
Changed: Aug 19
Last Checked: Aug 21 at 5:06AM
MLS# 1948910
Copyright © 2026 Northern Great Lakes Realtors 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 9,720-square-foot warehouse occupies 1.26 acres within Hammond Industrial Centre. The steel building has a metal roof, two bathrooms, a parking lot, and two 14' x 14' overhead doors supporting loading and material movement. Its configuration emphasizes industrial utility rather than extensive office improvements.
Electrical service includes two dedicated 240V, 60A circuits, each with its own safety disconnect. The available power supports equipment such as air compressors, welders, shop machinery, well pumps, large motors, and mini-split or HVAC systems. The property is located at 1416 Industry Drive in Traverse City, Michigan, within an established industrial corridor.
Electrical service includes two dedicated 240V, 60A circuits, each with its own safety disconnect. The available power supports equipment such as air compressors, welders, shop machinery, well pumps, large motors, and mini-split or HVAC systems. The property is located at 1416 Industry Drive in Traverse City, Michigan, within an established industrial corridor.
Key Highlights
- 9,720‑square‑foot steel warehouse on 1.26 acres
- Two 14' x 14' overhead doors for loading and receiving
- Two dedicated 240V, 60A circuits with individual safety disconnects
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
$77,352
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
7.77%
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%
$1,547,040
$1.5M
Cap Rate 7%
$1,105,029
$1.1M
Cap Rate 9%
$859,467
$859.5K
Market Conditions
NOI Build-Up for 9,720 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
$96.8K $9.96/SF
− Vacancy
−$5.8K −$0.60/SF
EGI
$91.0K $9.36/SF
− OpEx
−$13.7K −$1.40/SF
NOI
$77.4K $7.96/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$9.96 /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%
$1,547,040
Cap Rate 7%
$1,105,029
Cap Rate 9%
$859,467
Alternative Uses
Best Use
Warehouse
$1.11M
$966.9K – $1.29M
NOI $77,352 @ 7.0% cap · market cap 7.77%
Second Best
Industrial
$809.2K
$708.0K – $944.1K
NOI $56,643 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$2.11M
$1.85M – $2.46M
NOI $147,806 @ 7.0% cap · market cap 14.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
123
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49696, MI
9,528
Population
5,005
Households
1.9
Avg Household Size
43
Median Age
41%
College-Educated
96%
High-School Grad
68.7 sq mi
ZIP Area
139
Density / Sq Mi
$96,138
Median Household Income
$46,893
Median Earnings
$1,309
Median Rent
$289,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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- Ashland Storage — 1067 N Rusch Rd, Traverse City, MI 49696
Frequently Asked Questions
What type of property is this?
Warehouse - Functional industrial space with dedicated power, two bathrooms, and parking in an established industrial park.
Where is this warehouse located?
The property is located at 1416 Industry Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 9,720‑square‑foot steel warehouse on 1.26 acres; Two 14' x 14' overhead doors for loading and receiving; Two dedicated 240V, 60A circuits with individual safety disconnects
