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1200 W Houghton Lake Drive, Prudenville, MI 48651
High-traffic location suitable for retail, service, or mixed commercial operations.
Property Size6,791 SF
Price / SF$110.29
Days on Market162
Property Features for 1200 W Houghton Lake Drive
General Information
Standard status
Active
Size
6,791 SF
Property subtype
Special Purpose
Zoning
VMU
Lease Type
NNN
Building Details
Year Built
2005
Listing Agency:
Coldwell Banker Commercial Schmidt, Realtors Prudenville
(989) 429-3100
Listed By:
Ruth Clemens · License #65-06043271
Source:
Crexi
Added: Mar 13
Changed: Aug 8
Last Checked: Aug 20 at 3:22PM
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 Coldwell Banker Commercial Schmidt, Realtors Prudenville
Investment Insights
Based on property information with market context.
This commercial property offers exposure and versatility in a high-traffic, accessible location. The well-maintained building provides square footage suitable for various business uses, including retail, service, or mixed commercial operations. The interior features a spacious, open layout and flexible work areas designed for customer service and administrative needs. On-site parking, convenient entry access, and road frontage provide visibility and signage potential. The property's construction and grounds offer a turnkey opportunity for an owner-operator or an addition to an investment portfolio. Situated near established businesses, residential neighborhoods, and major travel routes, the location offers growth potential and consistent traffic flow. The property has a size of 6791 square feet.
Key Highlights
- High‑traffic, easily accessible location with excellent road frontage and signage potential.
- Generous square footage suitable for diverse business uses.
- Ample on‑site parking and convenient entry access.
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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
145
Businesses Nearby
Balanced
Demand for This Use
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
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - High-traffic location suitable for retail, service, or mixed commercial operations.
Where is this storefront property 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: High‑traffic, easily accessible location with excellent road frontage and signage potential.; Generous square footage suitable for diverse business uses.; Ample on‑site parking and convenient entry access.
