Remodeled Live-Work
For Sale
$635,000
2530 Three Mile Road, Traverse City, MI 49686
Adaptable property offers commercial and residential use with a garage, central air, and paved on-site parking.
Property Size1,879 SF
Price / SF$337.95
Days on Market12
Property Features for 2530 Three Mile Road
General Information
Standard status
Active
Size
1,879 SF
Property subtype
Office
Amenities
Central Air
3
Asphalt
Parking. Corner Lot.
7 Parking Spaces. Paved Driveway, Lot.
200 x 278
Overhead Doors. Corner, Public Roads.
Building Details
Year Built
1940
Listing Agency:
Krause Realty Solutions
(231) 357-2040
Listed By:
Thomas Krause
(231) 357-2040
Source:
Xome
Added: Aug 20
Changed: Aug 31
Last Checked: Aug 31 at 1:04PM
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 Krause Realty Solutions
Investment Insights
Based on property information with market context.
This 1,879-square-foot live-work property was built in 1940 and completely remodeled. The interior includes central air, while the improvements feature a large garage with overhead doors and space that can function as either commercial or residential use.
Set on a corner lot at 2530 Three Mile Road in Traverse City, the property includes a paved driveway and seven parking spaces. The lot measures 200 x 278, providing a substantial outdoor area alongside the existing building and garage.
Set on a corner lot at 2530 Three Mile Road in Traverse City, the property includes a paved driveway and seven parking spaces. The lot measures 200 x 278, providing a substantial outdoor area alongside the existing building and garage.
Key Highlights
- 1,879 SF live‑work property at 2530 Three Mile Road
- Completely remodeled interior with central air
- Commercial or residential use supported by the existing layout
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
$20,124
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
3.17%
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%
$402,480
$402.5K
Cap Rate 7%
$287,486
$287.5K
Cap Rate 9%
$223,600
$223.6K
Market Conditions
NOI Build-Up for 1,879 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
$31.6K $16.80/SF
− Vacancy
−$4.7K −$2.52/SF
EGI
$26.8K $14.28/SF
− OpEx
−$6.7K −$3.57/SF
NOI
$20.1K $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%
$402,480
Cap Rate 7%
$287,486
Cap Rate 9%
$223,600
Alternative Uses
Best Use
Office B
$287.5K
$251.6K – $335.4K
NOI $20,124 @ 7.0% cap · market cap 3.17%
Second Best
Mixed Use
$229.0K
$200.4K – $267.2K
NOI $16,030 @ 7.0% cap · market cap 2.52%
Theoretical Best
Office A
$408.2K
$357.2K – $476.2K
NOI $28,573 @ 7.0% cap · market cap 4.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
87
Businesses Nearby
Explore this area
Business Placement
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
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?
Live-work space - Adaptable property offers commercial and residential use with a garage, central air, and paved on-site parking.
Where is this live-work space located?
The property is located at 2530 Three Mile Road Traverse City, MI.
What is the asking price?
The asking price for this property is $635,000.
What are key features of this property?
This property features: 1,879 SF live‑work property at 2530 Three Mile Road; Completely remodeled interior with central air; Commercial or residential use supported by the existing layout
