Remodeled Office Building with
For Sale
Under Contract
$599,000
3639 Cass Road, Traverse City, MI 49685
Commercial, Traverse City, MI
Property Size5,038 SF
Lot Size0.54 Acres
Price / SF$118.90
Days on Market419
Property Features for 3639 Cass Road
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Parking features
Parking Lot
Exterior features
Wood, Stone
Lot features
Freestanding
Directions
North of South Airport Rd on the west side of Cass.
Subdivision
Grand Traverse
Standard status
Active Under Contract
Size
5,038 SF
Lot size
0.54 Acres
Taxes and HOA fees
Tax Description
PT SW1/4 NE1/4 SEC 15 T27N R11W COM AT CTR POST SEC 15 TH N 19 DEG 08'21"E 591.67' TO POB TH N 15 DEG 51'42" E 150.06' TH N 21 DEG 29'49"E 142.89' TH S 64 DEG 23'05" E 124.49' TH S 26 DEG 37'14" W 250.9' TH N 89 DEG 29'16" W 93.21' TO POB.
Legal Description
PT SW1/4 NE1/4 SEC 15 T27N R11W COM AT CTR POST SEC 15 TH N 19 DEG 08'21"E 591.67' TO POB TH N 15 DEG 51'42" E 150.06' TH N 21 DEG 29'49"E 142.89' TH S 64 DEG 23'05" E 124.49' TH S 26 DEG 37'14" W 250.9' TH N 89 DEG 29'16" W 93.21' TO POB.
Building Details
Building materials
Block, Frame
Roof type
Membrane
Listing Agency:
Three West, LLC
(231) 929-2955
Listed By:
David Frost · License #6501203019
(231) 929-2955
Added: Jul 9, 2025
Changed: Aug 24
Last Checked: Aug 31 at 12:06PM
MLS# 1936256
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 5,038-square-foot office building in Traverse City has been recently remodeled and is zoned Commercial. Approximately half of the building is leased, while the remaining area is vacant and available for occupancy. The configuration supports a user seeking workspace with an existing income component, as well as an investor evaluating a partially leased office asset.
The property is positioned on Cass Road, described as a main connection road in the Traverse City area. Site improvements include a parking lot, a membrane roof, and exterior construction featuring wood and stone. The building’s structural materials include block and frame construction, and the parcel encompasses 0.54 acres.
The property is positioned on Cass Road, described as a main connection road in the Traverse City area. Site improvements include a parking lot, a membrane roof, and exterior construction featuring wood and stone. The building’s structural materials include block and frame construction, and the parcel encompasses 0.54 acres.
Key Highlights
- 5,038‑square‑foot office building on 0.54 acres
- Recently remodeled commercial office property
- Approximately half of the building is leased
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
$53,957
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
9.01%
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%
$1,079,140
$1.1M
Cap Rate 7%
$770,814
$770.8K
Cap Rate 9%
$599,522
$599.5K
Market Conditions
NOI Build-Up for 5,038 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
$84.6K $16.80/SF
− Vacancy
−$12.7K −$2.52/SF
EGI
$71.9K $14.28/SF
− OpEx
−$18.0K −$3.57/SF
NOI
$54.0K $10.71/SF
Area
Grand Traverse County, MI
Vacancy
15.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
25.00%
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%
$1,079,140
Cap Rate 7%
$770,814
Cap Rate 9%
$599,522
Alternative Uses
Best Use
Office B
$770.8K
$674.5K – $899.3K
NOI $53,957 @ 7.0% cap · market cap 9.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.09M
$957.6K – $1.28M
NOI $76,610 @ 7.0% cap · market cap 12.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
50%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
486
Businesses Nearby
Explore this area
Business Placement
Demographics for 49685, MI
20,856
Population
9,395
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
95%
High-School Grad
54.2 sq mi
ZIP Area
385
Density / Sq Mi
$82,639
Median Household Income
$45,783
Median Earnings
$1,338
Median Rent
$309,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Recently remodeled commercial office property with a partially leased configuration and available space for an owner-user.
Where is this office building located?
The property is located at 3639 Cass Road Traverse City, MI.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: 5,038‑square‑foot office building on 0.54 acres; Recently remodeled commercial office property; Approximately half of the building is leased
