Flex Space with
For Sale
$440,000
2489 N US 31 Highway, Petoskey, MI 49770
Commercial/Industrial, Petoskey, MI
Property Size2,700 SF
Price / SF$162.96
Days on Market62
Property Features for 2489 N US 31 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
EC B2
Elementary school district
Petoskey
Middle school district
Petoskey
High school district
Petoskey
Directions
US 31 North across from Hearthside Grove.
Subdivision
Bear Creek
Standard status
Active
APN
01-16-25-101-005
Size
2,700 SF
Taxes and HOA fees
Tax Description
HIAWATHA HEIGHTS, LOTS 29 & 30, SECTION 25, T35N, R5W.
Legal Description
HIAWATHA HEIGHTS, LOTS 29 & 30, SECTION 25, T35N, R5W.
Utilities
Water source
Well
Amenities
restrooms
kitchenette
Listing Agency:
Graham Real Estate
(231) 526-6251
Listed By:
Kevin Olson
(231) 881-7303
Added: Jul 2
Changed: Aug 19
Last Checked: Sep 1 at 3:06AM
MLS# 476913
Copyright © 2026 Northern Michigan 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 2,700-square-foot flex property combines office space with a dedicated workshop area in Petoskey, Michigan. The front offices have been updated, while the shop is climate controlled for year-round use. Two restrooms and a kitchenette add practical support space, and 3 Phase power serves the building.
Improvements completed in 2019 included new windows, a new roof, exterior insulation, an air exchanger, and radiant heat in the workshop. The property is zoned EC B2 and uses a well water source. Located at 2489 N US 31 Highway, the building is positioned just north of Petoskey.
Improvements completed in 2019 included new windows, a new roof, exterior insulation, an air exchanger, and radiant heat in the workshop. The property is zoned EC B2 and uses a well water source. Located at 2489 N US 31 Highway, the building is positioned just north of Petoskey.
Key Highlights
- 2,700 SF flex building with office and workshop areas
- Climate‑controlled workshop with radiant heat
- 2019 improvements include roof, windows, insulation, and air exchanger
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
$35,224
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
8.01%
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%
$704,480
$704.5K
Cap Rate 7%
$503,200
$503.2K
Cap Rate 9%
$391,378
$391.4K
Market Conditions
NOI Build-Up for 2,700 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
$54.1K $20.04/SF
− Vacancy
−$3.8K −$1.40/SF
EGI
$50.3K $18.64/SF
− OpEx
−$15.1K −$5.59/SF
NOI
$35.2K $13.05/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /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%
$704,480
Cap Rate 7%
$503,200
Cap Rate 9%
$391,378
Alternative Uses
Best Use
Warehouse
$611.0K
$534.7K – $712.9K
NOI $42,772 @ 7.0% cap · market cap 9.72%
Second Best
Industrial
$503.2K
$440.3K – $587.1K
NOI $35,224 @ 7.0% cap · market cap 8.01%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
6
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
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 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?
Flex space - Updated offices and a climate-controlled work area support varied commercial operations.
Where is this flex space located?
The property is located at 2489 N US 31 Highway Petoskey, MI.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: 2,700 SF flex building with office and workshop areas; Climate‑controlled workshop with radiant heat; 2019 improvements include roof, windows, insulation, and air exchanger
