Flex Space with Drive-In
For Sale
$350,000
1366 Heightsview Dr, Houghton Lake, MI 48630
Commercially zoned property combines open office, warehouse, parts storage, and covered exterior storage near M-55.
Property Size4,100 SF
Price / SF$87.50
Days on Market52
Property Features for 1366 Heightsview Dr
General Information
Standard status
Active
Size
4,100 SF
Property subtype
Industrial
Zoning
Commercial
Site & Location
Highway Access
Yes
Outdoor Storage
Yes
Additional Details
Drive-In Doors
1
Building Details
Buildings
1
Building Size
4,100 SF
Listing Agency:
First Companies
(616) 698-5000
Listed By:
Matt Abraham · License #6502396785
(616) 698-5000
Source:
Carwm.resimplifi
Added: Jul 10
Changed: Aug 28
Last Checked: Aug 29 at 6:02AM
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 First Companies
Investment Insights
Based on property information with market context.
This commercially zoned flex property combines office and industrial areas in a single building. The office portion includes an open work area, while the warehouse includes dedicated parts storage, open floor space, covered exterior storage, and one drive-in door. The configuration supports light industrial and service-oriented operations without separating office and warehouse functions.
The property is situated near M-55 and two blocks from Houghton Lake. Its location provides direct proximity to the highway corridor and the lake, while the existing mix of enclosed and covered storage accommodates varied operational needs.
The property is situated near M-55 and two blocks from Houghton Lake. Its location provides direct proximity to the highway corridor and the lake, while the existing mix of enclosed and covered storage accommodates varied operational needs.
Key Highlights
- Commercial zoning supports a range of business uses
- Office area includes an open work space
- Warehouse offers parts storage and open floor area
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
$27,509
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
7.86%
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%
$550,180
$550.2K
Cap Rate 7%
$392,986
$393.0K
Cap Rate 9%
$305,656
$305.7K
Market Conditions
NOI Build-Up for 4,000 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
$36.0K $9.00/SF
− Vacancy
−$3.6K −$0.91/SF
EGI
$32.4K $8.09/SF
− OpEx
−$4.9K −$1.21/SF
NOI
$27.5K $6.88/SF
Area
Roscommon County, MI
Vacancy
10.10%
Lease Rate
$9.00 /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%
$550,180
Cap Rate 7%
$392,986
Cap Rate 9%
$305,656
Alternative Uses
Best Use
Office B
$514.3K
$450.0K – $600.0K
NOI $36,000 @ 7.0% cap · market cap 10.29%
Second Best
Warehouse
$393.0K
$343.9K – $458.5K
NOI $27,509 @ 7.0% cap · market cap 7.86%
Theoretical Best
Office A
$658.3K
$576.0K – $768.0K
NOI $46,080 @ 7.0% cap · market cap 13.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
82
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48630, MI
227
Population
164
Households
1.4
Avg Household Size
57
Median Age
66%
High-School Grad
0.2 sq mi
ZIP Area
1,135
Density / Sq Mi
$71,518
Median Household Income
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Commercially zoned property combines open office, warehouse, parts storage, and covered exterior storage near M-55.
Where is this flex space located?
The property is located at 1366 Heightsview Dr Houghton Lake, MI.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Commercial zoning supports a range of business uses; Office area includes an open work space; Warehouse offers parts storage and open floor area
