Flex Building with Overhead
For Sale
$619,000
8722 US-31, Grawn, MI 49637
Commercial, Grawn, MI
Property Size6,720 SF
Lot Size0.76 Acres
Price / SF$92.11
Days on Market570
Property Features for 8722 US-31
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Commercial
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking features
Parking Lot
Exterior features
Vinyl
Lot features
Inside Lot
Directions
From Chums Corner, West on 31 toward Interlochen, past Grawn Corners, building on right before Interlochen Corners.
Subdivision
Grand Traverse
Standard status
Active
Size
6,720 SF
Lot size
0.76 Acres
Taxes and HOA fees
Tax Description
GL 123-6 E 100' OF W 1586' OF S 330' OF SW 1/4 SEC 10 T26N R12W
Legal Description
GL 123-6 E 100' OF W 1586' OF S 330' OF SW 1/4 SEC 10 T26N R12W
Utilities
Water source
Private
Amenities
2 baths
full kitchen
commercial foyer entrance
hot water boiler radiant heat
metallic cable wiring
optic cable
deck
12-foot overhead garage doors
large separate room
high ceilings
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Bouwman Realty Group
Listed By:
Laurie Bouwman
(231) 631-4919
Added: Feb 9, 2025
Changed: Aug 19
Last Checked: Sep 2 at 11:06AM
MLS# 1930749
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 flex property contains 6,720 square feet within a frame building on 0.76 acres. The layout combines front retail and office areas with a large open room, a commercial foyer, a main-floor kitchen, and two bathrooms. A separate upper-level area has plumbing for a kitchen and bathroom, its own entrance, and a deck facing the wooded rear portion of the site.
The building includes 12-foot overhead doors at the rear, a side garage-door entry, and high ceilings in the larger back room. Radiant heat is supplied by a hot-water boiler. Additional features include vinyl exterior siding, an asphalt roof, a cement approach with curbing, metallic cable wiring, optic cable, private water, and a parking lot. The property fronts US-31 and includes room for expansion on the front side.
The building includes 12-foot overhead doors at the rear, a side garage-door entry, and high ceilings in the larger back room. Radiant heat is supplied by a hot-water boiler. Additional features include vinyl exterior siding, an asphalt roof, a cement approach with curbing, metallic cable wiring, optic cable, private water, and a parking lot. The property fronts US-31 and includes room for expansion on the front side.
Key Highlights
- 6,720‑square‑foot flex building on 0.76 acres
- 12‑foot overhead doors at the rear plus a side garage‑door entry
- Front retail and office areas with a large open back room
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
$39,161
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
6.33%
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%
$783,220
$783.2K
Cap Rate 7%
$559,443
$559.4K
Cap Rate 9%
$435,122
$435.1K
Market Conditions
NOI Build-Up for 6,720 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
$60.5K $9.00/SF
− Vacancy
−$4.5K −$0.68/SF
EGI
$55.9K $8.33/SF
− OpEx
−$16.8K −$2.50/SF
NOI
$39.2K $5.83/SF
Area
Grand Traverse County, MI
Vacancy
7.50%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$783,220
Cap Rate 7%
$559,443
Cap Rate 9%
$435,122
Alternative Uses
Best Use
Retail
$1.19M
$1.04M – $1.38M
NOI $83,091 @ 7.0% cap · market cap 13.42%
Second Best
Office B
$1.03M
$899.6K – $1.20M
NOI $71,971 @ 7.0% cap · market cap 11.63%
Theoretical Best
Office A
$1.46M
$1.28M – $1.70M
NOI $102,187 @ 7.0% cap · market cap 16.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
28
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49637, MI
3,466
Population
1,562
Households
2.2
Avg Household Size
44
Median Age
22%
College-Educated
91%
High-School Grad
22.2 sq mi
ZIP Area
156
Density / Sq Mi
$74,871
Median Household Income
$29,035
Median Earnings
$1,309
Median Rent
$228,100
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?
Flex space - Open-concept commercial building with retail, office, storage, and adaptable upper-level space.
Where is this flex space located?
The property is located at 8722 US-31 Grawn, MI.
What is the asking price?
The asking price for this property is $619,000.
What are key features of this property?
This property features: 6,720‑square‑foot flex building on 0.76 acres; 12‑foot overhead doors at the rear plus a side garage‑door entry; Front retail and office areas with a large open back room
