Flex Space with Loading
For Sale
$250,000
317 Cherry Street, Houghton Lake, MI 48629
COMMERCIAL - Houghton Lake, MI
Property Size1,890 SF
Lot Size0.16 Acres
Price / SF$132.28
Days on Market243
Property Features for 317 Cherry Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
201 C
Subdivision
Linwood Park
Directions
South on Federal from W Houghton Lake Dr. West on Collingwood. North on Cherry. Property is the second on the right.
Standard status
Active
APN
011-460-033-0000
Size
1,890 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Description
L-1003 P-2136 (L-449 P-254 L-541 P-623) 224 LOT 33 LINWOOD PARK.
Tax Annual Amount
710
Legal Description
L-1003 P-2136 (L-449 P-254 L-541 P-623) 224 LOT 33 LINWOOD PARK.
Building Details
Floors in Building
2
Building materials
Steel Siding
Listing Agency:
KW Northern Michigan Team Partners
(989) 745-8992
Listed By:
Kayla Marie Spohn
(989) 965-4973
Added: Dec 23, 2025
Changed: Aug 4
Last Checked: Aug 23 at 6:06PM
MLS# 201838354
Copyright © 2026 Water Wonderland Board of Realtors®. 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 1,890-square-foot flex property includes open shop space, an overhead door, a loading dock, and 200-amp electrical service. Steel siding supports the building’s practical light-industrial configuration, while zoning is identified as 201 C. The property is located at 317 Cherry Street in Houghton Lake, Michigan.
The sale includes the established Pifer & Morford Heating HVAC company, along with its client list and HVAC equipment. The business has served the Houghton Lake area since 1946 and provides residential and commercial heating services. The combination of commercial real estate, operating business assets, and dedicated shop improvements supports continued HVAC, trade, storage, or other light-industrial use.
The sale includes the established Pifer & Morford Heating HVAC company, along with its client list and HVAC equipment. The business has served the Houghton Lake area since 1946 and provides residential and commercial heating services. The combination of commercial real estate, operating business assets, and dedicated shop improvements supports continued HVAC, trade, storage, or other light-industrial use.
Key Highlights
- 1,890‑square‑foot flex property
- 200‑amp electrical service
- Open shop area with overhead door and loading dock
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
$11,511
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
4.60%
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%
$230,220
$230.2K
Cap Rate 7%
$164,443
$164.4K
Cap Rate 9%
$127,900
$127.9K
Market Conditions
NOI Build-Up for 1,890 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
$24.5K $12.96/SF
− Vacancy
−$6.8K −$3.59/SF
EGI
$17.7K $9.37/SF
− OpEx
−$6.2K −$3.28/SF
NOI
$11.5K $6.09/SF
Area
Roscommon County, MI
Vacancy
27.70%
Lease Rate
$12.96 /SF/Yr
Expense Ratio
35.00%
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%
$230,220
Cap Rate 7%
$164,443
Cap Rate 9%
$127,900
Alternative Uses
Best Use
Flex RnD
$164.4K
$143.9K – $191.9K
NOI $11,511 @ 7.0% cap · market cap 4.60%
Second Best
Industrial
$152.9K
$133.8K – $178.4K
NOI $10,704 @ 7.0% cap · market cap 4.28%
Theoretical Best
Office A
$311.0K
$272.2K – $362.9K
NOI $21,773 @ 7.0% cap · market cap 8.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Dock-high doors
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
71
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
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?
Flex space - Commercial flex property with shop area, overhead access, and an HVAC business included in the sale.
Where is this flex space located?
The property is located at 317 Cherry Street Houghton Lake, MI.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 1,890‑square‑foot flex property; 200‑amp electrical service; Open shop area with overhead door and loading dock
