Updated Storefront Retail
For Sale
$430,000
1025 Hannah Avenue, Traverse City, MI 49686
Commercial, Traverse City, MI
Property Size2,432 SF
Lot Size0.26 Acres
Price / SF$176.81
Days on Market49
Property Features for 1025 Hannah Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Parking features
Parking Lot
Exterior features
Block
Lot features
Freestanding
Directions
North side of Hannah between Garfield Ave and Fern St.
Subdivision
Grand Traverse
Standard status
Active
Size
2,432 SF
Lot size
0.26 Acres
Taxes and HOA fees
Tax Description
LOTS 98 97 & W 10 FT OF LOT 96 OAK HEIGHTS ADD
Legal Description
LOTS 98 97 & W 10 FT OF LOT 96 OAK HEIGHTS ADD
Amenities
front reception area
two restrooms
kitchenette area
security system
Building Details
Building materials
Block
Roof type
Membrane, Asphalt
Listing Agency:
Three West, LLC
(231) 929-2955
Listed By:
Bill Somerville · License #6501400610
(231) 620-2128
Added: Jul 27
Changed: Sep 1
Last Checked: Sep 13 at 9:06PM
MLS# 1948474
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 2,432-square-foot storefront property occupies a 0.26-acre parcel and received renovations in 2020. Improvements include a new HVAC system, refreshed interior finishes, custom woodwork, a front reception area, two restrooms, a kitchenette, and a security system. Block construction, a parking lot, and membrane and asphalt roofing are also documented.
The property is located at 1025 Hannah Avenue in Traverse City, just west of Garfield Avenue and near the TART recreational trail. Additional street parking is available beyond the on-site lot. Nearby retail businesses include RPM Records and Wild Card Cycle Works.
C-2 Neighborhood Center zoning accommodates retail, office, restaurant, and business service uses. The existing layout and building systems support a range of commercial occupancy formats within the established storefront setting.
The property is located at 1025 Hannah Avenue in Traverse City, just west of Garfield Avenue and near the TART recreational trail. Additional street parking is available beyond the on-site lot. Nearby retail businesses include RPM Records and Wild Card Cycle Works.
C-2 Neighborhood Center zoning accommodates retail, office, restaurant, and business service uses. The existing layout and building systems support a range of commercial occupancy formats within the established storefront setting.
Key Highlights
- 2,432‑square‑foot retail building on a 0.26‑acre parcel
- Renovated in 2020 with new HVAC, updated interior, and custom wood finishes
- Front reception area, two restrooms, kitchenette, and security system
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
$30,071
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
6.99%
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%
$601,420
$601.4K
Cap Rate 7%
$429,586
$429.6K
Cap Rate 9%
$334,122
$334.1K
Market Conditions
NOI Build-Up for 2,432 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
$46.7K $19.20/SF
− Vacancy
−$3.7K −$1.54/SF
EGI
$43.0K $17.66/SF
− OpEx
−$12.9K −$5.30/SF
NOI
$30.1K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$601,420
Cap Rate 7%
$429,586
Cap Rate 9%
$334,122
Alternative Uses
Best Use
Retail
$429.6K
$375.9K – $501.2K
NOI $30,071 @ 7.0% cap · market cap 6.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$528.3K
$462.3K – $616.4K
NOI $36,982 @ 7.0% cap · market cap 8.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
988
Businesses Nearby
31k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 52%
Groceries 48%
Family Fare
Groceries
14,551 visits/mo
0.3 miles
The UPS Store
Shops & Services
8,527 visits/mo
0.2 miles
AutoZone
Shops & Services
4,120 visits/mo
0.1 miles
PNC Bank
Shops & Services
2,489 visits/mo
0.3 miles
Precision Tune Auto Care
Shops & Services
919 visits/mo
0.1 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Similar Off Market Nearby
- Cherryland Floral And Gifts, Inc. — 1208 S Garfield Ave, Traverse City, MI 49686
Frequently Asked Questions
What type of property is this?
Storefront property - C-2 zoning supports retail, office, restaurant, and business service uses.
Where is this storefront property located?
The property is located at 1025 Hannah Avenue Traverse City, MI.
What is the asking price?
The asking price for this property is $430,000.
What are key features of this property?
This property features: 2,432‑square‑foot retail building on a 0.26‑acre parcel; Renovated in 2020 with new HVAC, updated interior, and custom wood finishes; Front reception area, two restrooms, kitchenette, and security system
