Single-Story Office
For Sale
$875,000
1499 Business Park Dr Traverse, Traverse City, MI 49686
Single-story log-sided office building with vaulted gathering room, private offices, kitchen, and ample paved parking.
Property Size5,000 SF
Lot Size4.55 Acres
Price / SF$175
Days on Market49
Property Features for 1499 Business Park Dr Traverse
General Information
Standard status
Active
Size
5,000 SF
Class
B
Lot size
4.55 Acres
Property subtype
Multi Tenant Office
Zoning
Industrial
Building Details
Building Size
5,000 SF
Year Built
2003
Year Renovated
2024
Stories
1
Listing Agency:
Three West LLC
(231) 929-2955
Listed By:
Kevin Endres · License #6505352968
(231) 929-2955
Source:
Thebrokerlist
Added: Jul 15
Changed: Aug 28
Last Checked: Sep 1 at 2:26PM
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 Three West LLC
Investment Insights
Based on property information with market context.
1499 Business Park Drive is a distinctive single-story office building with 5,000 SF and a log-sided exterior, set on 4.55 wooded acres. The interior includes a dramatic vaulted-ceiling gathering room with knotty pine finishes, multiple private offices, a full kitchen, and expansive multipurpose and recreation rooms. The property is described as move-in ready, with mechanical systems recently installed in 2024.
The building is located in East Bay Township, just minutes from downtown Traverse City. It sits on the east side of Business Park Dr after the road turns hard right changing the direction to south. The property is zoned Industrial within the established Business Park corridor.
With its mix of private offices and larger shared rooms, the space is positioned for professional office use and other permitted professional, nonprofit/community, and medical or wellness applications under the Industrial zoning designation noted in the materials.
The building is located in East Bay Township, just minutes from downtown Traverse City. It sits on the east side of Business Park Dr after the road turns hard right changing the direction to south. The property is zoned Industrial within the established Business Park corridor.
With its mix of private offices and larger shared rooms, the space is positioned for professional office use and other permitted professional, nonprofit/community, and medical or wellness applications under the Industrial zoning designation noted in the materials.
Key Highlights
- 5,000 SF single‑story log‑sided office building built in 2003
- Set on 4.55 wooded acres in East Bay Township, minutes from downtown Traverse City
- Recent mechanical systems installed in 2024
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
$53,550
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
6.12%
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%
$1,071,000
$1.1M
Cap Rate 7%
$765,000
$765.0K
Cap Rate 9%
$595,000
$595.0K
Market Conditions
NOI Build-Up for 5,000 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
$84.0K $16.80/SF
− Vacancy
−$12.6K −$2.52/SF
EGI
$71.4K $14.28/SF
− OpEx
−$17.9K −$3.57/SF
NOI
$53.6K $10.71/SF
Area
Grand Traverse County, MI
Vacancy
15.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
25.00%
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%
$1,071,000
Cap Rate 7%
$765,000
Cap Rate 9%
$595,000
Alternative Uses
Best Use
Office B
$765.0K
$669.4K – $892.5K
NOI $53,550 @ 7.0% cap · market cap 6.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.09M
$950.4K – $1.27M
NOI $76,032 @ 7.0% cap · market cap 8.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
71
Businesses Nearby
Explore this area
Business Placement
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
Median Home Value
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?
Office building - Single-story log-sided office building with vaulted gathering room, private offices, kitchen, and ample paved parking.
Where is this office building located?
The property is located at 1499 Business Park Dr Traverse Traverse City, MI.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 5,000 SF single‑story log‑sided office building built in 2003; Set on 4.55 wooded acres in East Bay Township, minutes from downtown Traverse City; Recent mechanical systems installed in 2024
