Professional Office
For Sale
$260,500
537 S Garfield Avenue, Traverse City, MI 49686
COMMERCIAL - Traverse City, MI
Property Size1,608 SF
Lot Size0.19 Acres
Price / SF$162
Days on Market205
Property Features for 537 S Garfield Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Parking features
Parking Lot
Exterior features
Vinyl
Lot features
Freestanding
Directions
East side of S Garfield Ave between E Eighth St and Hannah Ave.
Subdivision
Grand Traverse
Standard status
Active
Size
1,608 SF
Lot size
0.19 Acres
Taxes and HOA fees
Tax Description
UNIT 1 - GARFIELD PLAZA PHASE 2 GTC CONDO SUB PLAN NO 30 0624-0536 MASTER DEED FILED NOVEMBER 1, 1984.
Legal Description
UNIT 1 - GARFIELD PLAZA PHASE 2 GTC CONDO SUB PLAN NO 30 0624-0536 MASTER DEED FILED NOVEMBER 1, 1984.
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Three West, LLC
(231) 929-2955
Listed By:
Noah Endres
(231) 632-1125
Added: Jan 13
Changed: Aug 4
Last Checked: Aug 6 at 11:06PM
MLS# 1941710
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 1,608-square-foot professional office building includes two private offices plus a reception/waiting area. The space also features a private restroom and a finished basement with an additional office and restroom.
The property is located in a high-traffic area at the intersection of S Garfield Ave and E Eighth, with over 21,000 cars per day.
The building’s layout supports a tenant who needs a reception area alongside multiple private workspaces, with added functionality provided by the finished basement office and restroom.
The property is located in a high-traffic area at the intersection of S Garfield Ave and E Eighth, with over 21,000 cars per day.
The building’s layout supports a tenant who needs a reception area alongside multiple private workspaces, with added functionality provided by the finished basement office and restroom.
Key Highlights
- 1,608 SF professional office building with a reception/waiting area, 2 private offices, and a private restroom
- Finished basement adds an additional office and restroom
- Located at S Garfield Ave and E Eighth in a high‑traffic area with over 21,000 cars per day
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
$17,222
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
6.61%
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%
$344,440
$344.4K
Cap Rate 7%
$246,029
$246.0K
Cap Rate 9%
$191,356
$191.4K
Market Conditions
NOI Build-Up for 1,608 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
$27.0K $16.80/SF
− Vacancy
−$4.1K −$2.52/SF
EGI
$23.0K $14.28/SF
− OpEx
−$5.7K −$3.57/SF
NOI
$17.2K $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%
$344,440
Cap Rate 7%
$246,029
Cap Rate 9%
$191,356
Alternative Uses
Best Use
Office B
$246.0K
$215.3K – $287.0K
NOI $17,222 @ 7.0% cap · market cap 6.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$349.3K
$305.7K – $407.5K
NOI $24,452 @ 7.0% cap · market cap 9.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
21,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
863
Businesses Nearby
Explore this area
Business Placement
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
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 - Office building offers two private offices, reception area, private restroom, and finished basement office with restroom.
Where is this office building located?
The property is located at 537 S Garfield Avenue Traverse City, MI.
What is the asking price?
The asking price for this property is $260,500.
What are key features of this property?
This property features: 1,608 SF professional office building with a reception/waiting area, 2 private offices, and a private restroom; Finished basement adds an additional office and restroom; Located at S Garfield Ave and E Eighth in a high‑traffic area with over 21,000 cars per day
