Flex Space with Oversized
For Sale
$675,000
1393 INDUSTRY DR, Traverse City, MI 49696
Versatile commercial building combines private offices, storage, and vehicle-accessible garage space for operational flexibility.
Property Size5,150 SF
Price / SF$131.07
Days on Market8
Property Features for 1393 INDUSTRY DR
General Information
Standard status
Active
Size
5,150 SF
Total Parking Spaces
9
Property subtype
Industrial
Warehouse & Industrial
Clear Height
18 ft
Mezzanine
1,500 SF
Amenities
3
Concrete
Metal
1005010050
Building Details
Year Built
2024
Listing Agency:
Krause Realty Solutions
(231) 360-0112
Listed By:
Brittney Brayton
(231) 360-0112
Source:
Xome
Added: Aug 25
Changed: Aug 31
Last Checked: Sep 1 at 4:22PM
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 Krause Realty Solutions
Investment Insights
Based on property information with market context.
Available October 1, 2026, this 5,150-square-foot flex property at 1393 Industry Dr, Unit 1, combines office, storage, and garage components. The office area includes five private offices, a break room, two bathrooms, and a dedicated laundry room, with approximately 1,500 square feet of elevated storage above it. Built in 2024, the property provides a newer commercial setting for business operations requiring both workspace and substantial enclosed access.
The garage measures 70 feet by 50 feet and features 18-foot ceilings plus two 16-foot overhead doors for equipment and vehicle entry. Nine designated parking spaces serve employees and visitors. The configuration supports storage, distribution, light manufacturing, and service-oriented commercial operations, subject to applicable requirements.
The garage measures 70 feet by 50 feet and features 18-foot ceilings plus two 16-foot overhead doors for equipment and vehicle entry. Nine designated parking spaces serve employees and visitors. The configuration supports storage, distribution, light manufacturing, and service-oriented commercial operations, subject to applicable requirements.
Key Highlights
- 5,150 SF flex property at 1393 INDUSTRY DR, Unit 1
- 70' x 50' garage with 18‑foot ceilings
- Two 16‑foot overhead doors provide equipment and vehicle 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
$53,049
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%
$1,060,980
$1.1M
Cap Rate 7%
$757,843
$757.8K
Cap Rate 9%
$589,433
$589.4K
Market Conditions
NOI Build-Up for 5,150 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
$87.8K $17.04/SF
− Vacancy
−$6.1K −$1.19/SF
EGI
$81.6K $15.85/SF
− OpEx
−$28.6K −$5.55/SF
NOI
$53.0K $10.30/SF
Area
Grand Traverse County, MI
Vacancy
7.00%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
35.00%
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%
$1,060,980
Cap Rate 7%
$757,843
Cap Rate 9%
$589,433
Alternative Uses
Best Use
Flex RnD
$757.8K
$663.1K – $884.2K
NOI $53,049 @ 7.0% cap · market cap 7.86%
Second Best
Warehouse
$585.5K
$512.3K – $683.1K
NOI $40,984 @ 7.0% cap · market cap 6.07%
Theoretical Best
Office A
$1.12M
$978.9K – $1.31M
NOI $78,313 @ 7.0% cap · market cap 11.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
18 ft
Clear height
Location Intelligence
Trade Area within ½ mile
123
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49696, MI
9,528
Population
5,005
Households
1.9
Avg Household Size
43
Median Age
41%
College-Educated
96%
High-School Grad
68.7 sq mi
ZIP Area
139
Density / Sq Mi
$96,138
Median Household Income
$46,893
Median Earnings
$1,309
Median Rent
$289,300
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 - Versatile commercial building combines private offices, storage, and vehicle-accessible garage space for operational flexibility.
Where is this flex space located?
The property is located at 1393 INDUSTRY DR Traverse City, MI.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 5,150 SF flex property at 1393 INDUSTRY DR, Unit 1; 70' x 50' garage with 18‑foot ceilings; Two 16‑foot overhead doors provide equipment and vehicle access
