Petoskey Plaza Investment
For Sale
Contact for pricing
Pending
105 W Mitchell St, Petoskey, MI 49770
9,880 Sq Ft Plaza in Petoskey, Michigan for sale.
Property Size9,880 SF
Days on Market166
Property Features for 105 W Mitchell St
General Information
Standard status
Pending
Size
9,880 SF
Class
B
Property subtype
Retail
Occupancy
100%
Investment Type
Stabilized
Building Details
Year Built
1989
Listing Agency:
Marcus & Millichap - Detroit
Listed By:
John Nuzman · License #MI 6502389859
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Jul 24 at 3:54PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap - Detroit
Investment Insights
Based on property information with market context.
This commercial real estate offering features a 9,880 square foot plaza located in Petoskey, Michigan. The property is currently for sale and presents a rare investment opportunity. The plaza is being offered with an 8.14% capitalization rate.
Key Highlights
- 8.14% CAP Rate**
- Rare Petoskey MI Plaza
- 9,880 Sq Ft
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
$102,563
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
5.26%
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%
$2,051,260
$2.1M
Cap Rate 7%
$1,465,186
$1.5M
Cap Rate 9%
$1,139,589
$1.1M
Market Conditions
NOI Build-Up for 9,880 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
$152.9K $15.48/SF
− Vacancy
−$6.4K −$0.65/SF
EGI
$146.5K $14.83/SF
− OpEx
−$44.0K −$4.45/SF
NOI
$102.6K $10.38/SF
Area
Emmet County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$2,051,260
Cap Rate 7%
$1,465,186
Cap Rate 9%
$1,139,589
Alternative Uses
Best Use
Retail
$1.47M
$1.28M – $1.71M
NOI $102,563 @ 7.0% cap · market cap 5.26%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$2.24M
$1.96M – $2.61M
NOI $156,515 @ 7.0% cap · market cap 8.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,136
Businesses Nearby
37k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 57%
Dining 25%
Home Improvements & Furnishings 12%
Apparel 6%
Arby's
Dining
7,264 visits/mo
0.4 miles
Marathon Petroleum
Shops & Services
6,886 visits/mo
0.4 miles
The UPS Store
Shops & Services
5,763 visits/mo
0.2 miles
Meyer Ace Hardware
Home Improvements & Furnishings
4,378 visits/mo
0.2 miles
Fifth Third Bank & ATM
Shops & Services
3,158 visits/mo
0.1 miles
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
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Shopping center - 9,880 Sq Ft Plaza in Petoskey, Michigan for sale.
Where is this shopping center located?
The property is located at 105 W Mitchell St Petoskey, MI.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: 8.14% CAP Rate**; Rare Petoskey MI Plaza; 9,880 Sq Ft
