Tractor Supply-Leased Retail
For Sale
$4,985,222
2201 N US Highway 31, Petoskey, MI 49770
Retail storefront on US-31 leased to Tractor Supply Company, operated at the site since 2011.
Property Size19,532 SF
Days on Market52
Property Features for 2201 N US Highway 31
General Information
Standard status
Active
Size
19,532 SF
Property subtype
Commercial
Occupancy
100%
Lease Term
± 10.75 Years
Net Operating Income
$314,069
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
19,532 SF
Year Built
2011
Tenancy
Single
Listing Agency:
Matthews Real Estate Investment Services
Listed By:
Chad Kurz · License #01911198 (CA)
(949) 662-2252
Source:
Matthews
Added: Jul 19
Changed: Sep 4
Last Checked: Sep 8 at 3:28AM
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 Matthews Real Estate Investment Services
Investment Insights
Based on property information with market context.
This retail storefront is leased to Tractor Supply Company and has been operated at the site since 2011. The property includes a long-term tenant commitment evidenced by an early lease extension for an additional 10 years.
The property is strategically positioned along US-31, described as the primary commercial corridor serving Petoskey and surrounding Northern Michigan communities, with downtown access and strong year-round consumer demand.
As a Tractor Supply location, the site aligns with the company’s focus on essential products for rural and lifestyle retail needs, including pet supplies, livestock feed, outdoor power equipment, home improvement, and agricultural products.
The property is strategically positioned along US-31, described as the primary commercial corridor serving Petoskey and surrounding Northern Michigan communities, with downtown access and strong year-round consumer demand.
As a Tractor Supply location, the site aligns with the company’s focus on essential products for rural and lifestyle retail needs, including pet supplies, livestock feed, outdoor power equipment, home improvement, and agricultural products.
Key Highlights
- Retail storefront on US‑31, the primary commercial corridor serving Petoskey and surrounding Northern Michigan communities
- Leased to Tractor Supply Company; tenant operates more than 2,500 locations nationwide
- Tractor Supply operates at this site since 2011 and recently extended the lease early for an additional 10 years
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
$202,760
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
4.07%
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%
$4,055,200
$4.1M
Cap Rate 7%
$2,896,571
$2.9M
Cap Rate 9%
$2,252,889
$2.3M
Market Conditions
NOI Build-Up for 19,532 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
$302.4K $15.48/SF
− Vacancy
−$12.7K −$0.65/SF
EGI
$289.7K $14.83/SF
− OpEx
−$86.9K −$4.45/SF
NOI
$202.8K $10.38/SF
Area
Emmet County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$4,055,200
Cap Rate 7%
$2,896,571
Cap Rate 9%
$2,252,889
Alternative Uses
Best Use
Retail
$2.90M
$2.53M – $3.38M
NOI $202,760 @ 7.0% cap · market cap 4.07%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$4.42M
$3.87M – $5.16M
NOI $309,419 @ 7.0% cap · market cap 6.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
120
Businesses Nearby
5k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 100%
Kilwin's
Dining
4,705 visits/mo
0.5 miles
Demographics for 49770, MI
17,643
Population
10,244
Households
1.7
Avg Household Size
44
Median Age
47%
College-Educated
97%
High-School Grad
109.4 sq mi
ZIP Area
161
Density / Sq Mi
$80,431
Median Household Income
$42,154
Median Earnings
$1,077
Median Rent
$309,900
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail storefront on US-31 leased to Tractor Supply Company, operated at the site since 2011.
Where is this retail space located?
The property is located at 2201 N US Highway 31 Petoskey, MI.
What is the asking price?
The asking price for this property is $4,985,222.
What are key features of this property?
This property features: Retail storefront on US‑31, the primary commercial corridor serving Petoskey and surrounding Northern Michigan communities; Leased to Tractor Supply Company; tenant operates more than 2,500 locations nationwide; Tractor Supply operates at this site since 2011 and recently extended the lease early for an additional 10 years
