Three-Unit Mixed-Use
For Sale
$564,900
602 Jackson Street, Petoskey, MI 49770
Commercial/Industrial, Petoskey, MI
Property Size2,329 SF
Price / SF$242.55
Days on Market81
Property Features for 602 Jackson Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
COP-B3
Window features
Vinyl Frames
Elementary school district
Petoskey
Middle school district
Petoskey
High school district
Petoskey
Directions
US-31 to Jackson St., turn left and602 Jackson is on the left, next to Johan's Bakery.
Subdivision
Petoskey City
Standard status
Active
APN
52-19-06-126-043
Size
2,329 SF
Taxes and HOA fees
Tax Description
WEST PARK ADD, COM ON S LN OF LOT 9, BLK 7 OF SD PLAT, 79.57 FT W OF SE COR OF SD LOT 9, TH E ALG S
Legal Description
WEST PARK ADD, COM ON S LN OF LOT 9, BLK 7 OF SD PLAT, 79.57 FT W OF SE COR OF SD LOT 9, TH E ALG S
Utilities
Utilities
Cable Available
Heating system
Natural Gas
Building Details
Building materials
Wood Frame
Roof type
Shingle
Listing Agency:
Berkshire Hathaway HomeServices Michigan Real Estate - HS
(231) 526-9800
Listed By:
Tom Mooradian · License #6501314498
(616) 334-6672
Added: Jul 2
Changed: Aug 28
Last Checked: Sep 20 at 4:06PM
MLS# 479351
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 2,329-square-foot mixed-use property contains three units: a professional office suite and two one-bedroom, one-bath apartments. The office has a long-term lease in place. Both residential units have been upgraded, and the upper apartment includes bay views from its living room, kitchen, and deck. A detached one-stall garage is also included.
The property is located in Petoskey near McLaren Hospital and adjacent to Johan's Bakery. Residential use has included both short- and long-term rentals, with one apartment currently owner occupied. Office showings are limited to weekday business hours from 9 a.m. to 4 p.m., and showing requests require up to 24 hours' notice.
The property is located in Petoskey near McLaren Hospital and adjacent to Johan's Bakery. Residential use has included both short- and long-term rentals, with one apartment currently owner occupied. Office showings are limited to weekday business hours from 9 a.m. to 4 p.m., and showing requests require up to 24 hours' notice.
Key Highlights
- 2,329‑square‑foot mixed‑use property with 3 units
- Professional office space has a long‑term lease in place
- Two 1‑bedroom, 1‑bath apartments, including one owner‑occupied unit
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
$27,886
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
4.94%
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%
$557,720
$557.7K
Cap Rate 7%
$398,371
$398.4K
Cap Rate 9%
$309,844
$309.8K
Market Conditions
NOI Build-Up for 2,329 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
$44.2K $18.96/SF
− Vacancy
−$7.0K −$3.00/SF
EGI
$37.2K $15.96/SF
− OpEx
−$9.3K −$3.99/SF
NOI
$27.9K $11.97/SF
Area
Emmet County, MI
Vacancy
15.80%
Lease Rate
$18.96 /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%
$557,720
Cap Rate 7%
$398,371
Cap Rate 9%
$309,844
Alternative Uses
Best Use
Office B
$398.4K
$348.6K – $464.8K
NOI $27,886 @ 7.0% cap · market cap 4.94%
Second Best
Mixed Use
$387.6K
$339.1K – $452.2K
NOI $27,129 @ 7.0% cap · market cap 4.80%
Theoretical Best
Warehouse
$527.1K
$461.2K – $614.9K
NOI $36,895 @ 7.0% cap · market cap 6.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Office units
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,021
Businesses Nearby
Explore this area
Business Placement
Demographics for 49770, MI
17,643
Population
10,244
Households
1.7
Avg Household Size
44
Median Age
47%
College-Educated
97%
High-School Grad
109.4 sq mi
ZIP Area
161
Density / Sq Mi
$80,431
Median Household Income
$42,154
Median Earnings
$1,077
Median Rent
$309,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Includes leased office space and two one-bedroom, one-bath apartments.
Where is this mixed-use property located?
The property is located at 602 Jackson Street Petoskey, MI.
What is the asking price?
The asking price for this property is $564,900.
What are key features of this property?
This property features: 2,329‑square‑foot mixed‑use property with 3 units; Professional office space has a long‑term lease in place; Two 1‑bedroom, 1‑bath apartments, including one owner‑occupied unit
