Open-Layout Retail
For Sale
$749,000
1200 W Houghton Lake Drive, Prudenville, MI 48651
Commercial Sale, Prudenville, MI
Property Size6,791 SF
Lot Size1.72 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
VMU
Parking features
Parking Lot
Subdivision
Idlewild Resort
Directions
Highway M-55 1/4 mile West of Prudenville stop light five corner location.
Standard status
Active
APN
003-370-254-1000
Size
6,791 SF
Lot size
1.72 Acres
Taxes and HOA fees
Tax Description
Please see attached for full legal: L-1033 P-1533 223 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''''....
Legal Description
Please see attached for full legal: L-1033 P-1533 223 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''''....
Utilities
Water source
Well
Building Details
Floors in Building
1
Listing Agency:
CB Schmidt Houghton Lake
(989) 366-5522
Listed By:
Ruth Anne Clemens · License #6506043271
(989) 429-3100
Added: Mar 11
Changed: Sep 6
Last Checked: Sep 26 at 8:06AM
MLS# 201839004
Copyright © 2026 Water Wonderland Board of Realtors®. 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 within a 1.72-acre parcel. The building has an open interior arrangement with adaptable work areas, customer entry access, and a parking lot. VMU zoning is identified for the property, and the site is served by a well.
Located at 1200 W Houghton Lake Drive in Prudenville, the property offers road frontage and access from a commercial corridor. The surrounding area includes established businesses and residential neighborhoods, with proximity to major travel routes noted in the property information.
Located at 1200 W Houghton Lake Drive in Prudenville, the property offers road frontage and access from a commercial corridor. The surrounding area includes established businesses and residential neighborhoods, with proximity to major travel routes noted in the property information.
Key Highlights
- 6,791 square feet of retail space
- 1.72‑acre parcel
- VMU zoning
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
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 - The property combines flexible interior areas with a dedicated parking lot.
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 feet of retail space; 1.72‑acre parcel; VMU zoning
