Light-Industrial Flex
New
For Sale
$675,000
1393 Industry Drive, Traverse City, MI 49696
Commercial, Traverse City, MI
Property Size5,150 SF
Lot Size0.37 Acres
Price / SF$131.07
Days on Market1
Property Features for 1393 Industry Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Industrial, Office, Manufacture/Warehouse
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Parking
9
Parking features
Assigned, Parking Lot
Exterior features
Stone, Steel
Lot features
Corner Lot, Industrial Park, Business Park
Directions
From S Garfield Rd, turn left (east) onto Hammond Rd, then turn right (south) onto Industry Dr. Follow Industry Dr to 1393 Industry Dr.
Subdivision
Grand Traverse
Standard status
Active
Size
5,150 SF
Lot size
0.37 Acres
Taxes and HOA fees
Tax Description
UNIT 1 HAMMOND COMMONS GT CO CONDOMINIUM SUBD PLAN NO 513 (2023C-00046) - REDEVEL OF UNIT 31 HAMMOND INDUSTRIAL CENTRE GT CO CONDOMINIUM SUBD PLAN NO 160 (L 1547 P564) SEC 22 T27N R11W SPLIT/COMBINED ON 02/21/2024 FROM 05-134-031-00;
Legal Description
UNIT 1 HAMMOND COMMONS GT CO CONDOMINIUM SUBD PLAN NO 513 (2023C-00046) - REDEVEL OF UNIT 31 HAMMOND INDUSTRIAL CENTRE GT CO CONDOMINIUM SUBD PLAN NO 160 (L 1547 P564) SEC 22 T27N R11W SPLIT/COMBINED ON 02/21/2024 FROM 05-134-031-00;
Amenities
break room
laundry room
Building Details
Building materials
Frame
Roof type
Metal
Listing Agency:
Krause Realty Solutions
(231) 714-7219
Listed By:
Brittney Brayton
(231) 360-0112
Added: Aug 28
Last Checked: Aug 28 at 7:06PM
MLS# 1949943
Copyright © 2026 Northern Great Lakes Realtors 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.
The 5,150-square-foot flex property at 1393 Industry Drive combines professional office space with substantial service and storage areas. The office component includes five private offices, a break room, two bathrooms, and a separate laundry room. Approximately 1,500 square feet of elevated storage is located above the office area.
A 70-by-50-foot garage provides 18-foot ceilings and two 16-foot overhead doors measuring 16 feet each, accommodating equipment and vehicle access. The property also includes nine designated parking spaces, a metal roof, and stone and steel exterior elements. Building availability begins October 1, 2026. The parcel encompasses 0.37 acres in Traverse City, Michigan.
A 70-by-50-foot garage provides 18-foot ceilings and two 16-foot overhead doors measuring 16 feet each, accommodating equipment and vehicle access. The property also includes nine designated parking spaces, a metal roof, and stone and steel exterior elements. Building availability begins October 1, 2026. The parcel encompasses 0.37 acres in Traverse City, Michigan.
Key Highlights
- 5,150‑square‑foot flex property on a 0.37‑acre parcel
- Five private offices, break room, two bathrooms, and dedicated laundry room
- Approximately 1,500 square feet of storage above the office 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
$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
2
Drive-in doors
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Office, garage, and storage areas support varied commercial operations.
Where is this flex space located?
The property is located at 1393 Industry Drive 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‑square‑foot flex property on a 0.37‑acre parcel; Five private offices, break room, two bathrooms, and dedicated laundry room; Approximately 1,500 square feet of storage above the office area
