Fully Leased Office
For Sale
$502,230
607 Randolph Street, Traverse City, MI 49684
Commercial, Traverse City, MI
Property Size1,768 SF
Price / SF$284.07
Days on Market724
Property Features for 607 Randolph Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Exterior features
Brick, Block
Lot features
Inside Lot
Directions
South side of Randolph St between N Maple St and N Division St.
Subdivision
Grand Traverse
Standard status
Active
Size
1,768 SF
Taxes and HOA fees
Tax Description
UNIT 1 - WINDWARD CONDOMINIUM GTC CONDO SUB PLAN 387 THIS IS A CONVERTABLE & CONTRACTABLE CONDO 2015C-00028 MASTER DEED FILED MAY 18, 2015.
Legal Description
UNIT 1 - WINDWARD CONDOMINIUM GTC CONDO SUB PLAN 387 THIS IS A CONVERTABLE & CONTRACTABLE CONDO 2015C-00028 MASTER DEED FILED MAY 18, 2015.
Building Details
Building materials
Brick, Block, Frame
Roof type
Membrane
Listing Agency:
Three West, LLC
(231) 929-2955
Listed By:
Kevin Endres · License #6505352968
(231) 534-5225
Added: Sep 10, 2024
Changed: Aug 31
Last Checked: Sep 3 at 6:06AM
MLS# 1926993
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 1,768-square-foot office unit is part of a contemporary professional office property constructed in 2015. The building features brick, block, and frame construction with a membrane roof, while the unit is fully occupied and designated Commercial C-2 zoning.
The property is located at 607 Randolph Street in Traverse City, near West Grand Traverse Bay. The current tenant’s initial lease term concludes in March of 2026, with two available three-year renewal options. The combination of established occupancy, documented lease options, and modern construction provides a straightforward profile for office ownership.
The property is located at 607 Randolph Street in Traverse City, near West Grand Traverse Bay. The current tenant’s initial lease term concludes in March of 2026, with two available three-year renewal options. The combination of established occupancy, documented lease options, and modern construction provides a straightforward profile for office ownership.
Key Highlights
- 1,768 SF office unit constructed in 2015
- 100% occupancy with an initial lease term ending in March of 2026
- Two 3‑year tenant renewal options
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
$18,935
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
3.77%
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%
$378,700
$378.7K
Cap Rate 7%
$270,500
$270.5K
Cap Rate 9%
$210,389
$210.4K
Market Conditions
NOI Build-Up for 1,768 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
$29.7K $16.80/SF
− Vacancy
−$4.5K −$2.52/SF
EGI
$25.2K $14.28/SF
− OpEx
−$6.3K −$3.57/SF
NOI
$18.9K $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%
$378,700
Cap Rate 7%
$270,500
Cap Rate 9%
$210,389
Alternative Uses
Best Use
Office B
$270.5K
$236.7K – $315.6K
NOI $18,935 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$384.1K
$336.1K – $448.1K
NOI $26,885 @ 7.0% cap · market cap 5.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,571
Businesses Nearby
Explore this area
Business Placement
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
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 units - C-2-zoned office unit with full occupancy and contemporary construction in Traverse City.
Where is this office units located?
The property is located at 607 Randolph Street Traverse City, MI.
What is the asking price?
The asking price for this property is $502,230.
What are key features of this property?
This property features: 1,768 SF office unit constructed in 2015; 100% occupancy with an initial lease term ending in March of 2026; Two 3‑year tenant renewal options
