Building Details

Year Built 1996

Construction pole construction

Listing Agency: REO-TCRandolph-233022 r***@reneerosa.com Show Phone

Listed By: Renee Rosa Show Phone

Source: Xome

Added: Jul 21 Changed: Aug 8 Last Checked: Aug 9 at 5:38AM

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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 one-of-a-kind commercial property features a 30-by-64 pole construction building that is fully insulated and heated, with 14' ceilings. The structure includes two overhead doors (12' and 10'), with concrete pads in front and at the rear. The interior space is divided into two separate areas, and the outdoor yard includes some fencing and additional outdoor space.

The property is offered for sale with commercial zoning and mixed use. It sits on a 1.26-acre parcel west of Interlochen Corners, with gravel driveway access. Natural gas is on site, and electric is in the process of being added to the pole barn. The property currently does not have a well or septic, which is noted as the responsibility of the new owner.

A new tax ID is also listed as in process.

Key Highlights

• 1.26‑acre commercial parcel west of Interlochen Corners with commercial zoning and mixed use
• 30x64 pole construction building, fully insulated, with 14' ceilings and HVAC including central air
• Two overhead doors (12' and 10') with concrete pads at the front and back of the building

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

$19,777

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

6.09%

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%

$395,540 $395.5K

Cap Rate 7%

$282,529 $282.5K

Cap Rate 9%

$219,744 $219.7K

Market Conditions

NOI Build-Up for 1,920 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

$32.7K $17.04/SF

− Vacancy

−$2.3K −$1.19/SF

EGI

$30.4K $15.85/SF

− OpEx

−$10.6K −$5.55/SF

NOI

$19.8K $10.30/SF

Area

Grand Traverse County, MI

Vacancy

7.00%

Lease Rate

$17.04 /SF/Yr

Expense Ratio

35.00%

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%

$395,540

Cap Rate 7%

$282,529

Cap Rate 9%

$219,744

Alternative Uses

Best Use

Flex RnD

$282.5K

$247.2K – $329.6K (±1% cap)

NOI $19,777 @ 7.0% cap · market cap 6.09%

Second Best

Warehouse

$218.3K

$191.0K – $254.7K (±1% cap)

NOI $15,279 @ 7.0% cap · market cap 4.70%

Theoretical Best

Office A

$417.1K

$365.0K – $486.6K (±1% cap)

NOI $29,196 @ 7.0% cap · market cap 8.98%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Flex space

Suggested Use

Top Pick Building Supply Auto Repair Shop Auto Parts Store Storage Facility Barber Shop Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

14 ft

Clear height

Yes

Fenced yard

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

94

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 49643, MI

7,379

Population

3,490

Households

2.1

Avg Household Size

41

Median Age

33%

College-Educated

94%

High-School Grad

59.6 sq mi

ZIP Area

124

Density / Sq Mi

$81,061

Median Household Income

$40,190

Median Earnings

$900

Median Rent

$247,300

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this warehouses located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Warehouse - Fully insulated pole construction building with 14' ceilings and two overhead doors, plus fenced outdoor yard.

Where is this warehouse located?

The property is located at 11844 Us-31 Interlochen, MI.

What is the asking price?

The asking price for this property is $325,000.

What are key features of this property?

This property features: 1.26‑acre commercial parcel west of Interlochen Corners with commercial zoning and mixed use; 30x64 pole construction building, fully insulated, with 14' ceilings and HVAC including central air; Two overhead doors (12' and 10') with concrete pads at the front and back of the building