Downtown Office Building and Parking
For Sale
$4,800,000
116 W Front Street, Traverse City, MI 49684
Office building with dedicated parking lot across Front Street in downtown Traverse City.
Property Size28,928 SF
Price / SF$165.93
Days on Market184
Property Features for 116 W Front Street
General Information
Standard status
Active
Size
28,928 SF
Property subtype
Industrial
Amenities
Central Air
3
Building Details
Year Built
1941
Listing Agency:
REO-TCRandolph-233022
(616) 308-2132
Listed By:
Julia Bloxsom-Phelps
(616) 308-2132
Source:
Xome
Added: Feb 6
Changed: Aug 8
Last Checked: Aug 9 at 5:33AM
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 REO-TCRandolph-233022
Investment Insights
Based on property information with market context.
This offering includes a commercial office building at 116 W. Front Street together with a dedicated off-site parking lot at 119 W. Front Street, directly across the street. The building is equipped with a dedicated boiler system intended to support heated sidewalks along Front Street for improved winter access.
The property is located on Front Street in downtown Traverse City, with the parking lot positioned opposite the office building. Public remarks also note proximity to dining, retail, entertainment, and West Grand Traverse Bay.
For buyers seeking a downtown office asset paired with readily associated parking, the combination of the Front Street building and the dedicated parking lot across the street is a key component of this opportunity.
The property is located on Front Street in downtown Traverse City, with the parking lot positioned opposite the office building. Public remarks also note proximity to dining, retail, entertainment, and West Grand Traverse Bay.
For buyers seeking a downtown office asset paired with readily associated parking, the combination of the Front Street building and the dedicated parking lot across the street is a key component of this opportunity.
Key Highlights
- Office building at 116 W. Front Street in downtown Traverse City
- Dedicated parking lot across the street at 119 W. Front Street
- Central air cooling
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
$309,819
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
6.45%
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%
$6,196,380
$6.2M
Cap Rate 7%
$4,425,986
$4.4M
Cap Rate 9%
$3,442,433
$3.4M
Market Conditions
NOI Build-Up for 28,928 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
$486.0K $16.80/SF
− Vacancy
−$72.9K −$2.52/SF
EGI
$413.1K $14.28/SF
− OpEx
−$103.3K −$3.57/SF
NOI
$309.8K $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%
$6,196,380
Cap Rate 7%
$4,425,986
Cap Rate 9%
$3,442,433
Alternative Uses
Best Use
Office B
$4.43M
$3.87M – $5.16M
NOI $309,819 @ 7.0% cap · market cap 6.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.28M
$5.50M – $7.33M
NOI $439,891 @ 7.0% cap · market cap 9.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,935
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 building - Office building with dedicated parking lot across Front Street in downtown Traverse City.
Where is this office building located?
The property is located at 116 W Front Street Traverse City, MI.
What is the asking price?
The asking price for this property is $4,800,000.
What are key features of this property?
This property features: Office building at 116 W. Front Street in downtown Traverse City; Dedicated parking lot across the street at 119 W. Front Street; Central air cooling
