Block Retail
For Sale
$749,000
1200 W Houghton Lake Drive, Prudenville, MI 48651
Commercial, Prudenville, MI
Property Size6,791 SF
Lot Size1.70 Acres
Price / SF$110.29
Days on Market200
Property Features for 1200 W Houghton Lake Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Parking features
Parking Lot
Exterior features
Block
Lot features
Corner Lot, Freestanding
Directions
Highway M-55 1/4 mile West of Prudenville stop light five corner location. On North side of highway.
Subdivision
Roscommon
Standard status
Active
Size
6,791 SF
Lot size
1.70 Acres
Taxes and HOA fees
Tax Description
COM AT E 1/4 COR SEC 15 TH S89DEG39'38" W 2082.97FT TH N0DEG00'38"W 27.24FT FOR POB TH N0DEG00'38"W ALG W LINE OF 9TH STREET 399.68FT TH N89DEG49'46"W 174.74 FT TH S0DEG05'18"E 308.86FT TH N90DEG 00'W 22.18FT Long Legal - See Assoc Docs for complete legal
Legal Description
COM AT E 1/4 COR SEC 15 TH S89DEG39'38" W 2082.97FT TH N0DEG00'38"W 27.24FT FOR POB TH N0DEG00'38"W ALG W LINE OF 9TH STREET 399.68FT TH N89DEG49'46"W 174.74 FT TH S0DEG05'18"E 308.86FT TH N90DEG 00'W 22.18FT Long Legal - See Assoc Docs for complete legal
Utilities
Water source
Private
Building Details
Building materials
Block
Roof type
Membrane
Listing Agency:
COLDWELL BANKER SCHMIDT REALTORS-HL
(989) 366-5522
Listed By:
RUTH CLEMENS · License #6506043271
(989) 429-3100
Added: Mar 11
Changed: Sep 5
Last Checked: Sep 26 at 10:06AM
MLS# 1943095
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 retail property includes 6,791 square feet on a 1.7-acre parcel. The building has an open interior arrangement with adaptable work areas, customer entry access, and space suited to retail or service operations. Block construction, a membrane roof, and well-kept grounds complete the physical improvements.
The property is located at 1200 W Houghton Lake Drive in Prudenville, Michigan. On-site parking is provided through a dedicated parking lot. A private water source serves the property.
The property is located at 1200 W Houghton Lake Drive in Prudenville, Michigan. On-site parking is provided through a dedicated parking lot. A private water source serves the property.
Key Highlights
- 6,791‑square‑foot retail building on 1.7 acres
- Block construction with membrane roof
- Open interior layout with flexible work areas
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
$49,172
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
6.57%
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%
$983,440
$983.4K
Cap Rate 7%
$702,457
$702.5K
Cap Rate 9%
$546,356
$546.4K
Market Conditions
NOI Build-Up for 6,791 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
$81.5K $12.00/SF
− Vacancy
−$11.2K −$1.66/SF
EGI
$70.2K $10.34/SF
− OpEx
−$21.1K −$3.10/SF
NOI
$49.2K $7.24/SF
Area
Roscommon County, MI
Vacancy
13.80%
Lease Rate
$12.00 /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%
$983,440
Cap Rate 7%
$702,457
Cap Rate 9%
$546,356
Alternative Uses
Best Use
Retail
$702.5K
$614.7K – $819.5K
NOI $49,172 @ 7.0% cap · market cap 6.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.12M
$977.9K – $1.30M
NOI $78,232 @ 7.0% cap · market cap 10.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
157
Businesses Nearby
Explore this area
Business Placement
Demographics for 48651, MI
4,396
Population
3,825
Households
1.1
Avg Household Size
56
Median Age
19%
College-Educated
92%
High-School Grad
71.0 sq mi
ZIP Area
62
Density / Sq Mi
$42,938
Median Household Income
$32,917
Median Earnings
$797
Median Rent
$156,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Open-layout retail property with flexible work areas, on-site parking, and convenient entry access.
Where is this retail space located?
The property is located at 1200 W Houghton Lake Drive Prudenville, MI.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 6,791‑square‑foot retail building on 1.7 acres; Block construction with membrane roof; Open interior layout with flexible work areas
