Retail Storefront with Back-of-House
For Sale
$1,350,000
2021 W South Airport Rd, Traverse City, MI 49686
The property carries C-O FFICE zoning and is subject to a short-term lease.
Property Size5,095 SF
Price / SF$264.97
Days on Market26
Property Features for 2021 W South Airport Rd
General Information
Standard status
Active
Size
5,095 SF
Property subtype
Retail
Zoning
C-O FFICE
Additional Details
Corner Location
No
Liquor License
No
Amenities
office
storage
break room
conference area
Listing Agency:
DAR Commercial Real Estate
Listed By:
Christopher Prins · License #6501330745
(616) 389-5546
Source:
Carwm.resimplifi
Added: Sep 1
Changed: Sep 21
Last Checked: Sep 24 at 6:52AM
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 DAR Commercial Real Estate
Investment Insights
Based on property information with market context.
The retail property at 2021 W South Airport Rd includes 2,135 SF of retail sales area and 2,855 SF of supporting space. The back-of-house layout provides offices, storage, a break room, and a conference area, creating a functional configuration for retail operations and administrative needs. C-O FFICE zoning applies to the property.
The site is in Traverse City, Michigan, with Gardner White, McDonald's, and Qdoba identified as direct neighboring businesses. The existing lease is short term and includes flexible termination provisions, providing a defined notice framework for a future owner or occupant. The property is offered for sale.
The site is in Traverse City, Michigan, with Gardner White, McDonald's, and Qdoba identified as direct neighboring businesses. The existing lease is short term and includes flexible termination provisions, providing a defined notice framework for a future owner or occupant. The property is offered for sale.
Key Highlights
- 2,135 SF of retail sales floor
- 2,855 SF of back‑of‑house space
- Back‑of‑house areas include office, storage, break room, and conference space
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
$62,999
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
4.67%
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%
$1,259,980
$1.3M
Cap Rate 7%
$899,986
$900.0K
Cap Rate 9%
$699,989
$700.0K
Market Conditions
NOI Build-Up for 5,095 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
$97.8K $19.20/SF
− Vacancy
−$7.8K −$1.54/SF
EGI
$90.0K $17.66/SF
− OpEx
−$27.0K −$5.30/SF
NOI
$63.0K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$1,259,980
Cap Rate 7%
$899,986
Cap Rate 9%
$699,989
Alternative Uses
Best Use
Retail
$900.0K
$787.5K – $1.05M
NOI $62,999 @ 7.0% cap · market cap 4.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.11M
$968.5K – $1.29M
NOI $77,477 @ 7.0% cap · market cap 5.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
746
Businesses Nearby
72k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 44%
Dining 25%
Apparel 19%
Home Improvements & Furnishings 7%
Shell
Shops & Services
18,854 visits/mo
0.5 miles
McDonald's
Dining
17,914 visits/mo
0.5 miles
Goodwill
Apparel
13,645 visits/mo
0.3 miles
7-Eleven
Shops & Services
7,723 visits/mo
0.5 miles
Verizon
Electronics
3,573 visits/mo
0.1 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Storefront property - The property carries C-O FFICE zoning and is subject to a short-term lease.
Where is this storefront property located?
The property is located at 2021 W South Airport Rd Traverse City, MI.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 2,135 SF of retail sales floor; 2,855 SF of back‑of‑house space; Back‑of‑house areas include office, storage, break room, and conference space
