NNN Commercial
For Sale
$950,000
232 State Street, Traverse City, MI 49684
Tenant-occupied commercial space with a 10-year NNN lease and two renewal options.
Property Size2,270 SF
Price / SF$418.50
Days on Market198
Property Features for 232 State Street
General Information
Standard status
Active
Size
2,270 SF
Property subtype
Retail
Amenities
Central Air
3
Membrane
Parking.
On Street.
132 x 166
Interior Lot, Public Roads.
Building Details
Year Built
2025
Tenancy
Single
Listing Agency:
Three West, Llc
(231) 534-5225
Listed By:
Kevin Endres · License #6502377374
(231) 534-5225
Source:
Xome
Added: Feb 4
Changed: Aug 20
Last Checked: Aug 21 at 4:59AM
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.
This 2,270-square-foot commercial condominium at 232 State Street in Traverse City, Michigan, was constructed in 2025 and is currently tenant occupied. The property is structured under a 10-year NNN lease that commenced in November 2025, with two renewal options included in the lease terms.
Located in downtown Traverse City, the property offers a defined commercial ownership format with an established lease structure. Financial information is available subject to a signed NDA and proof of funds.
Located in downtown Traverse City, the property offers a defined commercial ownership format with an established lease structure. Financial information is available subject to a signed NDA and proof of funds.
Key Highlights
- 2,270 SF commercial condominium
- Constructed in 2025
- Tenant occupied
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
$28,068
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
2.95%
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%
$561,360
$561.4K
Cap Rate 7%
$400,971
$401.0K
Cap Rate 9%
$311,867
$311.9K
Market Conditions
NOI Build-Up for 2,270 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
$43.6K $19.20/SF
− Vacancy
−$3.5K −$1.54/SF
EGI
$40.1K $17.66/SF
− OpEx
−$12.0K −$5.30/SF
NOI
$28.1K $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%
$561,360
Cap Rate 7%
$400,971
Cap Rate 9%
$311,867
Alternative Uses
Best Use
Retail
$401.0K
$350.9K – $467.8K
NOI $28,068 @ 7.0% cap · market cap 2.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$493.1K
$431.5K – $575.3K
NOI $34,519 @ 7.0% cap · market cap 3.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,085
Businesses Nearby
40k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 41%
Hotels & Casinos 35%
Dining 11%
Groceries 6%
Delamar Traverse City
Hotels & Casinos
8,479 visits/mo
0.4 miles
Chase Bank
Shops & Services
6,517 visits/mo
0.0 miles
Hotel Indigo Traverse City
Hotels & Casinos
5,501 visits/mo
0.4 miles
Fifth Third Bank & ATM
Shops & Services
5,224 visits/mo
0.3 miles
Shell
Shops & Services
4,298 visits/mo
0.4 miles
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 Retail 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?
NNN property - Tenant-occupied commercial space with a 10-year NNN lease and two renewal options.
Where is this nnn property located?
The property is located at 232 State Street Traverse City, MI.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 2,270 SF commercial condominium; Constructed in 2025; Tenant occupied
