Manufacturing Building with Overhead
For Sale
$995,000
1416 Industry Drive, Traverse City, MI 49696
Utility-oriented industrial space with dedicated electrical capacity, loading access, and a limited office footprint.
Property Size9,720 SF
Price / SF$102.37
Days on Market37
Property Features for 1416 Industry Drive
General Information
Standard status
Active
Size
9,720 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$18,536
Amenities
3
IRREG
Building Details
Year Built
2022
Listing Agency:
REMAX Bayshore - West Shore Dr TC
(231) 941-4500
Listed By:
Brooks Wilcox · License #6501452622
Source:
Xome
Added: Jul 27
Changed: Aug 31
Last Checked: Aug 31 at 3:54PM
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 REMAX Bayshore - West Shore Dr TC
Investment Insights
Based on property information with market context.
Built in 2022, this 9,720-square-foot manufacturing property provides a straightforward industrial layout without extensive office construction. The building includes two bathrooms and two 14' x 14' overhead doors, supporting movement of materials and equipment. Dedicated electrical service includes two 240V, 60A circuits with separate safety disconnects for industrial machinery and related equipment.
The property is located within Hammond Industrial Centre at 1416 Industry Drive in Traverse City, Michigan. Its setting provides access within an established industrial park, with dedicated parking serving the facility. The building is suited to manufacturing, fabrication, storage, and equipment-oriented operations based on its physical configuration and utility capacity.
The property is located within Hammond Industrial Centre at 1416 Industry Drive in Traverse City, Michigan. Its setting provides access within an established industrial park, with dedicated parking serving the facility. The building is suited to manufacturing, fabrication, storage, and equipment-oriented operations based on its physical configuration and utility capacity.
Key Highlights
- 9,720‑square‑foot manufacturing building constructed in 2022
- Two 14' x 14' overhead doors
- Two 240V, 60A dedicated circuits with individual safety disconnects
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
$77,352
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
7.77%
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%
$1,547,040
$1.5M
Cap Rate 7%
$1,105,029
$1.1M
Cap Rate 9%
$859,467
$859.5K
Market Conditions
NOI Build-Up for 9,720 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
$96.8K $9.96/SF
− Vacancy
−$5.8K −$0.60/SF
EGI
$91.0K $9.36/SF
− OpEx
−$13.7K −$1.40/SF
NOI
$77.4K $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%
$1,547,040
Cap Rate 7%
$1,105,029
Cap Rate 9%
$859,467
Alternative Uses
Best Use
Warehouse
$1.11M
$966.9K – $1.29M
NOI $77,352 @ 7.0% cap · market cap 7.77%
Second Best
Industrial
$809.2K
$708.0K – $944.1K
NOI $56,643 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$2.11M
$1.85M – $2.46M
NOI $147,806 @ 7.0% cap · market cap 14.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
123
Businesses Nearby
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?
Manufacturing property - Utility-oriented industrial space with dedicated electrical capacity, loading access, and a limited office footprint.
Where is this manufacturing property located?
The property is located at 1416 Industry Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 9,720‑square‑foot manufacturing building constructed in 2022; Two 14' x 14' overhead doors; Two 240V, 60A dedicated circuits with individual safety disconnects
