Flex Building With Overhead
For Sale
$619,000
8722 Us-31, Grawn, MI 49637
Flexible commercial building with front retail and office areas, high-ceiling space, and a separately accessed second floor.
Property Size6,720 SF
Price / SF$92.11
Days on Market570
Property Features for 8722 Us-31
General Information
Standard status
Active
Size
6,720 SF
Property subtype
Industrial
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
full kitchen
commercial foyer entrance
hot water boiler radiant heat
optic cable
metallic cable wiring
3
Asphalt
100255
Building Details
Year Built
1994
Buildings
1
Stories
2
Building Size
6,720 SF
Listing Agency:
Bouwman Realty Group
(231) 631-4919
Listed By:
Laurie Bouwman
(231) 631-4919
Source:
Xome
Added: Feb 6, 2025
Changed: Aug 29
Last Checked: Aug 30 at 2:22PM
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 Bouwman Realty Group
Investment Insights
Based on property information with market context.
Built in 1994, this 6,720-square-foot flex property combines customer-facing space with adaptable back-of-house areas. The front portion includes retail and office areas, a commercial foyer, and a main-level kitchen. A separate rear room offers high ceilings and 12-foot overhead doors designed to accommodate heavy equipment, with an additional overhead door on the side of the building.
The second floor has its own entrance and was plumbed for an apartment-style setup with a kitchen and bathroom. It also includes a deck overlooking the wooded rear portion of the site. Additional property features include boiler-based radiant heat, metallic cable wiring, optic cable, asphalt parking, and a cement approach with curbing. The building is positioned along US-31 in Grawn, with room to expand on the front side.
The second floor has its own entrance and was plumbed for an apartment-style setup with a kitchen and bathroom. It also includes a deck overlooking the wooded rear portion of the site. Additional property features include boiler-based radiant heat, metallic cable wiring, optic cable, asphalt parking, and a cement approach with curbing. The building is positioned along US-31 in Grawn, with room to expand on the front side.
Key Highlights
- 6,720‑square‑foot commercial building constructed in 1994
- 12‑foot overhead doors at the rear, plus an additional side entrance
- Front retail and office areas with a commercial foyer and main‑level kitchen
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
$53,478
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
8.64%
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%
$1,069,560
$1.1M
Cap Rate 7%
$763,971
$764.0K
Cap Rate 9%
$594,200
$594.2K
Market Conditions
NOI Build-Up for 6,720 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
$66.9K $9.96/SF
− Vacancy
−$4.0K −$0.60/SF
EGI
$62.9K $9.36/SF
− OpEx
−$9.4K −$1.40/SF
NOI
$53.5K $7.96/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
15.00%
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%
$1,069,560
Cap Rate 7%
$763,971
Cap Rate 9%
$594,200
Alternative Uses
Best Use
Retail
$1.19M
$1.04M – $1.38M
NOI $83,091 @ 7.0% cap · market cap 13.42%
Second Best
Flex RnD
$988.9K
$865.3K – $1.15M
NOI $69,221 @ 7.0% cap · market cap 11.18%
Theoretical Best
Office A
$1.46M
$1.28M – $1.70M
NOI $102,187 @ 7.0% cap · market cap 16.51%
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
28
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49637, MI
3,466
Population
1,562
Households
2.2
Avg Household Size
44
Median Age
22%
College-Educated
91%
High-School Grad
22.2 sq mi
ZIP Area
156
Density / Sq Mi
$74,871
Median Household Income
$29,035
Median Earnings
$1,309
Median Rent
$228,100
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Flexible commercial building with front retail and office areas, high-ceiling space, and a separately accessed second floor.
Where is this flex space located?
The property is located at 8722 Us-31 Grawn, MI.
What is the asking price?
The asking price for this property is $619,000.
What are key features of this property?
This property features: 6,720‑square‑foot commercial building constructed in 1994; 12‑foot overhead doors at the rear, plus an additional side entrance; Front retail and office areas with a commercial foyer and main‑level kitchen
