Flex Space with
For Sale
$795,000
1901 Harbor-Petoskey Rd, Harbor Springs, MI 49740
Two-level retail areas pair with rear warehouse and studio space for a varied commercial layout.
Property Size2,936 SF
Lot Size1.49 Acres
Price / SF$270.78
Days on Market8
Property Features for 1901 Harbor-Petoskey Rd
General Information
Standard status
Active
Size
2,936 SF
Lot size
1.49 Acres
Property subtype
Retail
Zoning
R-2
Site & Location
Traffic Count
15,626 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
2,936 SF
Buildings
1
Tenancy
Single
Listing Agency:
Graham Real Estate
(231) 526-6251
Listed By:
Jennifer Miller
(231) 526-6251
Source:
Cpix.resimplifi
Added: Aug 25
Changed: Aug 30
Last Checked: Aug 31 at 12:34PM
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 Graham Real Estate
Investment Insights
Based on property information with market context.
This 2,936-square-foot flex property is configured with retail areas on the main and second floors, complemented by a substantial warehouse and studio area at the rear. Additional storage is located above the rear space, while the site provides ample parking and room for expansion. The property currently operates as a specialty goods retail store and includes a layout that can accommodate office, studio, workshop, or other commercial functions supported by the existing improvements.
Set on 1.49 acres along M-119 between Petoskey and Harbor Springs, the property records an average daily traffic count of 15,626 automobiles. The Little Traverse Wheel Way runs along this stretch of M-119, and Petoskey State Park borders the property to the west. The parcel is currently zoned R-2.
Set on 1.49 acres along M-119 between Petoskey and Harbor Springs, the property records an average daily traffic count of 15,626 automobiles. The Little Traverse Wheel Way runs along this stretch of M-119, and Petoskey State Park borders the property to the west. The parcel is currently zoned R-2.
Key Highlights
- 2,936‑square‑foot flex property on a 1.49‑acre site
- Retail configuration spans the main and second floors
- Rear warehouse/studio area with storage above
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
$38,303
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
4.82%
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%
$766,060
$766.1K
Cap Rate 7%
$547,186
$547.2K
Cap Rate 9%
$425,589
$425.6K
Market Conditions
NOI Build-Up for 2,936 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
$58.8K $20.04/SF
− Vacancy
−$4.1K −$1.40/SF
EGI
$54.7K $18.64/SF
− OpEx
−$16.4K −$5.59/SF
NOI
$38.3K $13.05/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
30.00%
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%
$766,060
Cap Rate 7%
$547,186
Cap Rate 9%
$425,589
Alternative Uses
Best Use
Industrial
$547.2K
$478.8K – $638.4K
NOI $38,303 @ 7.0% cap · market cap 4.82%
Second Best
Retail
$435.4K
$381.0K – $508.0K
NOI $30,478 @ 7.0% cap · market cap 3.83%
Theoretical Best
Warehouse
$664.4K
$581.4K – $775.2K
NOI $46,511 @ 7.0% cap · market cap 5.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
15,626 VPD
Traffic count
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
70
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49740, MI
7,511
Population
6,057
Households
1.2
Avg Household Size
55
Median Age
46%
College-Educated
97%
High-School Grad
124.9 sq mi
ZIP Area
60
Density / Sq Mi
$85,230
Median Household Income
$38,820
Median Earnings
$997
Median Rent
$332,600
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 - Two-level retail areas pair with rear warehouse and studio space for a varied commercial layout.
Where is this flex space located?
The property is located at 1901 Harbor-Petoskey Rd Harbor Springs, MI.
What is the asking price?
The asking price for this property is $795,000.
What are key features of this property?
This property features: 2,936‑square‑foot flex property on a 1.49‑acre site; Retail configuration spans the main and second floors; Rear warehouse/studio area with storage above
