Automotive Service
For Sale
$1,600,000
3566 N US-31 S, Traverse City, MI 49684
COMMERCIAL - Traverse City, MI
Property Size13,515 SF
Lot Size1.98 Acres
Price / SF$118.39
Days on Market1409
Property Features for 3566 N US-31 S
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Located in Garfield Township approximately 2 miles southwest of downtown Traverse City, on the east side of US-31, across from Great Wolf Lodge & Panera Bread.
Subdivision
Grand Traverse
Standard status
Active
Size
13,515 SF
Lot size
1.98 Acres
Taxes and HOA fees
Tax Description
PRT SW1/4 NE1/4 SEC 16 T27N R11W COM 750.13' S OF NE COR TH S 300.13' TH W 1056.19' TH ON CURVE RIGHT 317.55' (R= 5604.65' CH N 19 DEG 6' E 317.51') TH E 960.9' TO POB.
Legal Description
PRT SW1/4 NE1/4 SEC 16 T27N R11W COM 750.13' S OF NE COR TH S 300.13' TH W 1056.19' TH ON CURVE RIGHT 317.55' (R= 5604.65' CH N 19 DEG 6' E 317.51') TH E 960.9' TO POB.
Amenities
custom cabinetry
fireplace
Listing Agency:
G.A. Snowden Associates
(231) 632-6007
Listed By:
Gerald Snowden · License #6502118151
(231) 932-1700
Added: Oct 13, 2022
Changed: Aug 17
Last Checked: Aug 21 at 12:06AM
MLS# 1867624
Copyright © 2026 Northern Great Lakes Realtors 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 13,515-square-foot automotive building, constructed in 2001, combines a retail showroom with private offices, two restrooms, a conference room, and a lounge. The center section provides parts and storage space, while the service area includes 7 service bays and a separate 3-bay oil change area. The building also features 18-foot clear height, a 1,350-square-foot basement, a 1,500-square-foot mezzanine, custom cabinetry, and a fireplace.
Situated on 1.98 acres in Traverse City, the property is located within the CH Commercial District and an Opportunity Zone. Its position directly in front of two hotels adds a defined commercial setting for the existing automotive configuration. The site is at 3566 N US-31 S, Traverse City, MI 49684.
Situated on 1.98 acres in Traverse City, the property is located within the CH Commercial District and an Opportunity Zone. Its position directly in front of two hotels adds a defined commercial setting for the existing automotive configuration. The site is at 3566 N US-31 S, Traverse City, MI 49684.
Key Highlights
- 13,515‑square‑foot automotive building constructed in 2001
- 7 service bays plus a separate 3‑bay oil change area
- Retail showroom, private offices, conference room, lounge, and two restrooms
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
$78,759
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
4.92%
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%
$1,575,180
$1.6M
Cap Rate 7%
$1,125,129
$1.1M
Cap Rate 9%
$875,100
$875.1K
Market Conditions
NOI Build-Up for 13,515 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
$121.6K $9.00/SF
− Vacancy
−$9.1K −$0.68/SF
EGI
$112.5K $8.33/SF
− OpEx
−$33.8K −$2.50/SF
NOI
$78.8K $5.83/SF
Area
Grand Traverse County, MI
Vacancy
7.50%
Lease Rate
$9.00 /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%
$1,575,180
Cap Rate 7%
$1,125,129
Cap Rate 9%
$875,100
Alternative Uses
Best Use
Retail
$2.39M
$2.09M – $2.79M
NOI $167,110 @ 7.0% cap · market cap 10.44%
Second Best
Industrial
$1.13M
$984.5K – $1.31M
NOI $78,759 @ 7.0% cap · market cap 4.92%
Theoretical Best
Office A
$2.94M
$2.57M – $3.43M
NOI $205,514 @ 7.0% cap · market cap 12.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Service bays
Location Intelligence
Trade Area within ½ mile
394
Businesses Nearby
378k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 30%
Apparel 23%
Dining 22%
Shops & Services 17%
Meijer
Groceries
113,001 visits/mo
0.3 miles
Kohl's
Apparel
47,131 visits/mo
0.3 miles
T.J. Maxx
Apparel
39,140 visits/mo
0.4 miles
Meijer Gas Station
Shops & Services
33,818 visits/mo
0.3 miles
Michaels
Shops & Services
28,885 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
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Frequently Asked Questions
What type of property is this?
Automotive property - Automotive facility with showroom, offices, service bays, parts storage, and customer-oriented support areas.
Where is this automotive property located?
The property is located at 3566 N US-31 S Traverse City, MI.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 13,515‑square‑foot automotive building constructed in 2001; 7 service bays plus a separate 3‑bay oil change area; Retail showroom, private offices, conference room, lounge, and two restrooms
