New Downtown Retail/Office
For Sale
$854,000
232 E State Street, Traverse City, MI 49684
COMMERCIAL - Traverse City, MI
Property Size2,849 SF
Lot Size0.16 Acres
Price / SF$299.75
Days on Market103
Property Features for 232 E State Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Exterior features
Brick
Lot features
Inside Lot
Directions
South side of E State St between Cass St and Park St.
Subdivision
Grand Traverse
Standard status
Active
Size
2,849 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Description
Part of UNIT 92 - BOARDWALK CONDO GTC CONDO SUB PLAN NO 517 2023C-00057 MASTER DEED FILED DECEMBER 12, 2023. SPLIT/COMBINED ON 12/15/2023 FROM 28-51-794-088-00 CREATING CHILDREN 28-51-164-000-00 THRU 28-51-164-092-00;
Legal Description
Part of UNIT 92 - BOARDWALK CONDO GTC CONDO SUB PLAN NO 517 2023C-00057 MASTER DEED FILED DECEMBER 12, 2023. SPLIT/COMBINED ON 12/15/2023 FROM 28-51-794-088-00 CREATING CHILDREN 28-51-164-000-00 THRU 28-51-164-092-00;
Building Details
Building materials
Steel, Under Construction
Roof type
Membrane
Listing Agency:
Three West, LLC
(231) 929-2955
Listed By:
Kevin Endres · License #6505352968
(231) 534-5225
Added: May 12
Changed: Aug 4
Last Checked: Aug 22 at 5:06AM
MLS# 1945008
Copyright © 2026 Northern Great Lakes Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,849 SF commercial condo space was constructed in 2025 and offers a fresh, adaptable layout for either retail or professional office use. The property is offered as a condo, providing an opportunity for an owner-occupant or investor to control a defined commercial footprint in a newly built commercial setting.
Located at 232 E State Street in Traverse City, Michigan, the space sits in the downtown area. The listing highlights downtown placement, supporting walkable, mixed-use surroundings typical of a central business district.
The combination of recent construction and flexible use makes the space practical for businesses that want to establish operations without retrofitting from an older build-out. Tenants and buyers seeking a dedicated commercial condo for a retail concept or a professional office environment should find the size and current configuration well-aligned with everyday storefront or office requirements. For anyone evaluating a downtown retail/office property, this condo provides a defined, modern option with straightforward positioning within Traverse City’s commercial core.
Located at 232 E State Street in Traverse City, Michigan, the space sits in the downtown area. The listing highlights downtown placement, supporting walkable, mixed-use surroundings typical of a central business district.
The combination of recent construction and flexible use makes the space practical for businesses that want to establish operations without retrofitting from an older build-out. Tenants and buyers seeking a dedicated commercial condo for a retail concept or a professional office environment should find the size and current configuration well-aligned with everyday storefront or office requirements. For anyone evaluating a downtown retail/office property, this condo provides a defined, modern option with straightforward positioning within Traverse City’s commercial core.
Key Highlights
- 2,849 SF commercial condo space in downtown Traverse City, MI
- Constructed in 2025 and currently under construction
- Brick exterior with steel construction materials
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
$30,513
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
3.57%
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%
$610,260
$610.3K
Cap Rate 7%
$435,900
$435.9K
Cap Rate 9%
$339,033
$339.0K
Market Conditions
NOI Build-Up for 2,849 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
$47.9K $16.80/SF
− Vacancy
−$7.2K −$2.52/SF
EGI
$40.7K $14.28/SF
− OpEx
−$10.2K −$3.57/SF
NOI
$30.5K $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%
$610,260
Cap Rate 7%
$435,900
Cap Rate 9%
$339,033
Alternative Uses
Best Use
Office B
$435.9K
$381.4K – $508.6K
NOI $30,513 @ 7.0% cap · market cap 3.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$618.9K
$541.5K – $722.1K
NOI $43,323 @ 7.0% cap · market cap 5.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,085
Businesses Nearby
Explore this area
Business Placement
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
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 units - A 2025-constructed commercial condo suited for either retail or professional office use in downtown Traverse City.
Where is this office units located?
The property is located at 232 E State Street Traverse City, MI.
What is the asking price?
The asking price for this property is $854,000.
What are key features of this property?
This property features: 2,849 SF commercial condo space in downtown Traverse City, MI; Constructed in 2025 and currently under construction; Brick exterior with steel construction materials
