Storefront Property with Office
For Sale
$1,850,000
321 E Lake Street, Petoskey, MI 49770
Commercial/Industrial, Petoskey, MI
Property Size7,958 SF
Price / SF$232.47
Days on Market47
Property Features for 321 E Lake Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-2
Elementary school district
Petoskey
Middle school district
Petoskey
High school district
Petoskey
Directions
Follow US 31 N to East Lake Street, turn East. 321 E Lake St. is just before Howard St.
Subdivision
Petoskey City
Standard status
Active
APN
52-19-06-226-017
Size
7,958 SF
Taxes and HOA fees
Tax Description
SHAW & MC MILLAN'S ADDITION LOT 12 BLK 9. SECTION 6, T34N, R5W.
Legal Description
SHAW & MC MILLAN'S ADDITION LOT 12 BLK 9. SECTION 6, T34N, R5W.
Utilities
Heating system
Natural Gas
Building Details
Year built
1907
Listing Agency:
Berkshire Hathaway HomeServices Michigan Real Estate - HS
(231) 526-9800
Listed By:
Tom Mooradian · License #6501314498
(616) 334-6672
Added: Jul 21
Changed: Aug 19
Last Checked: Sep 5 at 8:06AM
MLS# 477427
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.
Offered for sale, this 7,958-square-foot commercial property presents a mixed retail and office configuration. The ground floor contains 3,958 square feet of retail area and is currently occupied by a clothing store, with the layout capable of being adapted for two separate storefronts. The upper level adds 4,000 square feet, arranged as five office suites with two restrooms.
The building is located at 321 E Lake Street in Petoskey’s Gaslight District, a downtown area identified in the property information as a destination for boutiques, galleries, and dining. Daily traffic is reported at 3,970 vehicles. Eight dedicated private parking spaces are positioned at the rear, and natural gas provides the heating source. Constructed in 1907, the property carries B-2 zoning.
The building is located at 321 E Lake Street in Petoskey’s Gaslight District, a downtown area identified in the property information as a destination for boutiques, galleries, and dining. Daily traffic is reported at 3,970 vehicles. Eight dedicated private parking spaces are positioned at the rear, and natural gas provides the heating source. Constructed in 1907, the property carries B-2 zoning.
Key Highlights
- 7,958‑square‑foot commercial building in Petoskey’s Gaslight District
- 3,958 square feet of street‑level retail space
- Upper floor includes 4,000 square feet with five office suites
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
$95,283
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
5.15%
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%
$1,905,660
$1.9M
Cap Rate 7%
$1,361,186
$1.4M
Cap Rate 9%
$1,058,700
$1.1M
Market Conditions
NOI Build-Up for 7,958 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
$150.9K $18.96/SF
− Vacancy
−$23.8K −$3.00/SF
EGI
$127.0K $15.96/SF
− OpEx
−$31.8K −$3.99/SF
NOI
$95.3K $11.97/SF
Area
Emmet County, MI
Vacancy
15.80%
Lease Rate
$18.96 /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%
$1,905,660
Cap Rate 7%
$1,361,186
Cap Rate 9%
$1,058,700
Alternative Uses
Best Use
Office B
$1.36M
$1.19M – $1.59M
NOI $95,283 @ 7.0% cap · market cap 5.15%
Second Best
Retail
$1.18M
$1.03M – $1.38M
NOI $82,611 @ 7.0% cap · market cap 4.47%
Theoretical Best
Warehouse
$1.80M
$1.58M – $2.10M
NOI $126,068 @ 7.0% cap · market cap 6.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Office units
3,970 VPD
Traffic count
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
987
Businesses Nearby
Under-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
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Frequently Asked Questions
What type of property is this?
Storefront property - Two-level commercial building combines street-level retail with upper-floor offices.
Where is this storefront property located?
The property is located at 321 E Lake Street Petoskey, MI.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: 7,958‑square‑foot commercial building in Petoskey’s Gaslight District; 3,958 square feet of street‑level retail space; Upper floor includes 4,000 square feet with five office suites
