Flex Space with Climate-Controlled
For Sale
$529,000
1859 Southpeak Drive, Traverse City, MI 49685
Adaptable commercial property with office amenities, updated finishes, and commercial-industrial zoning.
Property Size4,080 SF
Price / SF$129.66
Days on Market202
Property Features for 1859 Southpeak Drive
General Information
Standard status
Active
Size
4,080 SF
Property subtype
Commercial
Zoning
Commercial, Industrial
Lease Term
Cash, Other, Trade 1031 Exchange
Warehouse & Industrial
Clear Height
16 ft
Conditioned Warehouse
Yes
Amenities
reception area
private office spaces
conference room
kitchenette
half bathroom
Building Details
Building Size
4,080 SF
Year Built
2017
Listing Agency:
Century 21 Northland
(231) 534-4753
Listed By:
Deirdre Carroll · License #MI6506047900
(231) 534-4753
Source:
Sabudarealty
Added: Feb 10
Changed: Aug 29
Last Checked: Aug 30 at 5:34PM
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 Century 21 Northland
Investment Insights
Based on property information with market context.
This 4,080-square-foot flex property at 1859 Southpeak Drive includes an open warehouse-style area with more than 2,000 square feet of climate-controlled space and 16-foot ceilings. The balance of the layout provides a reception area, private offices, conference room, kitchenette, and half bathroom. New flooring and ductless heating and cooling systems add updated functionality throughout the interior.
Positioned along a high-traffic corridor in Blair Township, the property offers access and visibility for a range of permitted commercial or industrial uses. It was built in 2017 and carries Commercial, Industrial zoning. The warehouse area can support storage, production, or display functions, while the office components accommodate administrative work and meetings.
Positioned along a high-traffic corridor in Blair Township, the property offers access and visibility for a range of permitted commercial or industrial uses. It was built in 2017 and carries Commercial, Industrial zoning. The warehouse area can support storage, production, or display functions, while the office components accommodate administrative work and meetings.
Key Highlights
- 4,080‑square‑foot flex property built in 2017
- More than 2,000 square feet of climate‑controlled warehouse space
- 16‑foot ceilings in the open warehouse 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
$43,697
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
8.26%
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%
$873,940
$873.9K
Cap Rate 7%
$624,243
$624.2K
Cap Rate 9%
$485,522
$485.5K
Market Conditions
NOI Build-Up for 4,080 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
$68.5K $16.80/SF
− Vacancy
−$10.3K −$2.52/SF
EGI
$58.3K $14.28/SF
− OpEx
−$14.6K −$3.57/SF
NOI
$43.7K $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%
$873,940
Cap Rate 7%
$624,243
Cap Rate 9%
$485,522
Alternative Uses
Best Use
Office B
$624.2K
$546.2K – $728.3K
NOI $43,697 @ 7.0% cap · market cap 8.26%
Second Best
Flex RnD
$600.4K
$525.3K – $700.5K
NOI $42,027 @ 7.0% cap · market cap 7.94%
Theoretical Best
Office A
$886.3K
$775.5K – $1.03M
NOI $62,042 @ 7.0% cap · market cap 11.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
Location Intelligence
Trade Area within ½ mile
61
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49685, MI
20,856
Population
9,395
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
95%
High-School Grad
54.2 sq mi
ZIP Area
385
Density / Sq Mi
$82,639
Median Household Income
$45,783
Median Earnings
$1,338
Median Rent
$309,200
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?
Flex space - Adaptable commercial property with office amenities, updated finishes, and commercial-industrial zoning.
Where is this flex space located?
The property is located at 1859 Southpeak Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $529,000.
What are key features of this property?
This property features: 4,080‑square‑foot flex property built in 2017; More than 2,000 square feet of climate‑controlled warehouse space; 16‑foot ceilings in the open warehouse area
