Flex Building with Paved
For Sale
$2,100,000
1327 N US 31, Petoskey, MI 49770
COMMERCIAL - Petoskey, MI
Property Size5,120 SF
Lot Size3.60 Acres
Price / SF$410.16
Days on Market126
Property Features for 1327 N US 31
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
EC B-2
Elementary school district
Petoskey
Middle school district
Petoskey
High school district
Petoskey
Directions
Just north of the intersection where 31 and 119 meet. Between Lume and Walgreens.
Subdivision
Bear Creek
Standard status
Active
APN
01-16-34-100-012
Size
5,120 SF
Lot size
3.60 Acres
Taxes and HOA fees
Tax Description
COM 117 3/5 RDS N OF SE COR OF SW 1/4 OF NW 1/4, TH N43 degrees W 10 RD N45 degrees E 10 RD TO 1/8 LN, S 14.14 RD TO
Legal Description
COM 117 3/5 RDS N OF SE COR OF SW 1/4 OF NW 1/4, TH N43 degrees W 10 RD N45 degrees E 10 RD TO 1/8 LN, S 14.14 RD TO
Utilities
Heating system
Natural Gas
Water source
Well
Building Details
Building materials
Block
Listing Agency:
Berkshire Hathaway HomeServices Michigan Real Estate - HS
(231) 526-9800
Listed By:
Erin DeFrain
(231) 420-1394
Added: Apr 16
Changed: Aug 4
Last Checked: Aug 19 at 7:06AM
MLS# 476474
Copyright © 2026 Northern Michigan 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 3.6-acre commercial property includes a 5,120-square-foot block building configured for flexible business use. The improvements can support retail, office, showroom, or light industrial operations, subject to applicable requirements. A large paved parking area serves the building and adds practical functionality for customers, employees, or business operations.
Frontage extends along both US 31 and Pickerel Lake Road, providing access from two roadways. The property is located in Petoskey, Michigan, and carries EC B-2 zoning. Building systems include natural gas heating and a well water source, providing key infrastructure for the existing improvement.
Frontage extends along both US 31 and Pickerel Lake Road, providing access from two roadways. The property is located in Petoskey, Michigan, and carries EC B-2 zoning. Building systems include natural gas heating and a well water source, providing key infrastructure for the existing improvement.
Key Highlights
- 3.6‑acre parcel with frontage on US 31 and Pickerel Lake Road
- 5,120 sq ft block building
- Large paved parking lot
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
$66,796
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
3.18%
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%
$1,335,920
$1.3M
Cap Rate 7%
$954,229
$954.2K
Cap Rate 9%
$742,178
$742.2K
Market Conditions
NOI Build-Up for 5,120 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
$102.6K $20.04/SF
− Vacancy
−$7.2K −$1.40/SF
EGI
$95.4K $18.64/SF
− OpEx
−$28.6K −$5.59/SF
NOI
$66.8K $13.05/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /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%
$1,335,920
Cap Rate 7%
$954,229
Cap Rate 9%
$742,178
Alternative Uses
Best Use
Industrial
$954.2K
$835.0K – $1.11M
NOI $66,796 @ 7.0% cap · market cap 3.18%
Second Best
Retail
$759.3K
$664.4K – $885.8K
NOI $53,150 @ 7.0% cap · market cap 2.53%
Theoretical Best
Warehouse
$1.16M
$1.01M – $1.35M
NOI $81,109 @ 7.0% cap · market cap 3.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
102
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49770, MI
17,643
Population
10,244
Households
1.7
Avg Household Size
44
Median Age
47%
College-Educated
97%
High-School Grad
109.4 sq mi
ZIP Area
161
Density / Sq Mi
$80,431
Median Household Income
$42,154
Median Earnings
$1,077
Median Rent
$309,900
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Sweetwater Catering Co — 1106 Charlevoix Ave, Petoskey, MI 49770
Frequently Asked Questions
What type of property is this?
Flex space - EC B-2 zoning, dual-road frontage, and a block construction provide a versatile commercial property.
Where is this flex space located?
The property is located at 1327 N US 31 Petoskey, MI.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 3.6‑acre parcel with frontage on US 31 and Pickerel Lake Road; 5,120 sq ft block building; Large paved parking lot
