Office Condominium
For Sale
$636,570
232 E State Street Unit A Traverse, Traverse City, MI 49684
Newly constructed commercial condominium adaptable to retail or professional office use in downtown Traverse City.
Property Size2,121 SF
Price / SF$300
Days on Market195
Property Features for 232 E State Street Unit A Traverse
General Information
Standard status
Active
Size
2,121 SF
Class
A
Property subtype
Multi Tenant Office
Building Details
Building Size
2,121 SF
Year Built
2025
Listing Agency:
Three West LLC
(231) 929-2955
Listed By:
Kevin Endres · License #6505352968
(231) 929-2955
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 1:50PM
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 Three West LLC
Investment Insights
Based on property information with market context.
Unit A is a 2,121.9-square-foot commercial condominium completed in 2025. The space is positioned for either retail or professional office use, providing a flexible setting for an owner-user or occupant seeking a downtown commercial location.
The property is situated on the south side of E State Street between Cass Street and Park Street in Traverse City, Michigan. Its location places the unit within the downtown area and along an established commercial street corridor.
The property is situated on the south side of E State Street between Cass Street and Park Street in Traverse City, Michigan. Its location places the unit within the downtown area and along an established commercial street corridor.
Key Highlights
- 2,121.9 SF commercial condominium unit
- Constructed in 2025
- Suitable for retail or professional office use
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
$26,237
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
4.12%
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%
$524,740
$524.7K
Cap Rate 7%
$374,814
$374.8K
Cap Rate 9%
$291,522
$291.5K
Market Conditions
NOI Build-Up for 2,122 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
$40.7K $19.20/SF
− Vacancy
−$3.3K −$1.54/SF
EGI
$37.5K $17.66/SF
− OpEx
−$11.2K −$5.30/SF
NOI
$26.2K $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%
$524,740
Cap Rate 7%
$374,814
Cap Rate 9%
$291,522
Alternative Uses
Best Use
Retail
$374.8K
$328.0K – $437.3K
NOI $26,237 @ 7.0% cap · market cap 4.12%
Second Best
Office B
$324.7K
$284.1K – $378.8K
NOI $22,726 @ 7.0% cap · market cap 3.57%
Theoretical Best
Office A
$460.9K
$403.3K – $537.8K
NOI $32,266 @ 7.0% cap · market cap 5.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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
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Frequently Asked Questions
What type of property is this?
Office units - Newly constructed commercial condominium adaptable to retail or professional office use in downtown Traverse City.
Where is this office units located?
The property is located at 232 E State Street Unit A Traverse Traverse City, MI.
What is the asking price?
The asking price for this property is $636,570.
What are key features of this property?
This property features: 2,121.9 SF commercial condominium unit; Constructed in 2025; Suitable for retail or professional office use
