B-2B Mixed-Use
New
For Sale
$1,750,000
500 Howard St, Petoskey, MI 49770
Existing commercial space within Petoskey’s B-2B Mixed Use Corridor supports varied business and redevelopment concepts.
Property Size10,400 SF
Price / SF$168.27
Days on Market7
Property Features for 500 Howard St
General Information
Standard status
Active
Size
10,400 SF
Property subtype
Retail
Zoning
B-2B
Building Details
Building Size
10,400 SF
Listing Agency:
Graham Real Estate
(231) 526-6251
Listed By:
Hans Palma
(231) 526-6251
Source:
Cpix.resimplifi
Added: Aug 25
Changed: Aug 29
Last Checked: Aug 30 at 1:09PM
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 Graham Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property at 500 Howard Street includes an existing commercial building measuring approximately 10,400 square feet. The site is designated B-2B, a Mixed Use Corridor zoning classification, and the current improvements provide a substantial base for continued commercial occupancy or future redevelopment.
Current zoning and setbacks could support a new structure of approximately 25,000 square feet per floor, with up to three floors and approximately 75,000 square feet of buildable space. The property is located in Petoskey, Michigan, along Howard Street, offering a commercial setting for a range of uses identified in the source information, including retail, office, professional services, hospitality, and mixed-use development.
Current zoning and setbacks could support a new structure of approximately 25,000 square feet per floor, with up to three floors and approximately 75,000 square feet of buildable space. The property is located in Petoskey, Michigan, along Howard Street, offering a commercial setting for a range of uses identified in the source information, including retail, office, professional services, hospitality, and mixed-use development.
Key Highlights
- Approximately 10,400 square feet of existing commercial building area
- B‑2B Mixed Use Corridor zoning
- Current zoning and setbacks could support approximately 25,000 square feet per floor
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
$121,142
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
6.92%
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%
$2,422,840
$2.4M
Cap Rate 7%
$1,730,600
$1.7M
Cap Rate 9%
$1,346,022
$1.3M
Market Conditions
NOI Build-Up for 10,400 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
$208.4K $20.04/SF
− Vacancy
−$14.6K −$1.40/SF
EGI
$193.8K $18.64/SF
− OpEx
−$72.7K −$6.99/SF
NOI
$121.1K $11.65/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
37.50%
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%
$2,422,840
Cap Rate 7%
$1,730,600
Cap Rate 9%
$1,346,022
Alternative Uses
Best Use
Mixed Use
$1.73M
$1.51M – $2.02M
NOI $121,142 @ 7.0% cap · market cap 6.92%
Second Best
Retail
$1.54M
$1.35M – $1.80M
NOI $107,961 @ 7.0% cap · market cap 6.17%
Theoretical Best
Warehouse
$2.35M
$2.06M – $2.75M
NOI $164,753 @ 7.0% cap · market cap 9.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,021
Businesses Nearby
23k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Home Improvements & Furnishings 19%
Apparel 10%
Dining 8%
The UPS Store
Shops & Services
5,763 visits/mo
0.4 miles
Meyer Ace Hardware
Home Improvements & Furnishings
4,378 visits/mo
0.1 miles
Fifth Third Bank & ATM
Shops & Services
3,158 visits/mo
0.1 miles
Mercantile Bank
Shops & Services
3,027 visits/mo
0.1 miles
PNC Bank
Shops & Services
2,204 visits/mo
0.2 miles
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Existing commercial space within Petoskey’s B-2B Mixed Use Corridor supports varied business and redevelopment concepts.
Where is this mixed-use property located?
The property is located at 500 Howard St Petoskey, MI.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Approximately 10,400 square feet of existing commercial building area; B‑2B Mixed Use Corridor zoning; Current zoning and setbacks could support approximately 25,000 square feet per floor
