Iconic Office Building with
For Sale
$2,400,000
522 E Front St, Traverse City, MI 49686
Remodeled office building with parking and development potential.
Property Size6,584 SF
Lot Size0.53 Acres
Price / SF$364.52
Days on Market370
Property Features for 522 E Front St
General Information
Standard status
Active
Size
6,584 SF
Lot size
0.53 Acres
Listing Agency:
Coldwell Banker Schmidt Traverse City
Listed By:
Scott Hardy · License #6501306294
(231) 492-5898
Source:
Exprealty
Added: Sep 22, 2025
Changed: Sep 25
Last Checked: Sep 24 at 2:05PM
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 Coldwell Banker Schmidt Traverse City
Investment Insights
Based on property information with market context.
This iconic office building is located at the eastern entrance to downtown Traverse City. The property includes a large parking lot on-site. The building features a new roof and has been newly remodeled. It offers over 6,500 square feet on the main floor, with an additional 1,000 square feet of office space in the lower level. Zoned C-4a, the property allows for multiple commercial uses. It provides ingress and egress off of Front Street. Future development is possible up to 45 feet. The property is situated on 0.53 acres.
Key Highlights
- Newly remodeled with over 6,500 sq. ft. on the main floor and 1,000 sq. ft. of offices in the lower level.
- Large on‑site parking lot.
- Zoned C‑4a for multiple commercial uses.
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
$81,410
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
3.39%
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%
$1,628,200
$1.6M
Cap Rate 7%
$1,163,000
$1.2M
Cap Rate 9%
$904,556
$904.6K
Market Conditions
NOI Build-Up for 6,584 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
$126.4K $19.20/SF
− Vacancy
−$10.1K −$1.54/SF
EGI
$116.3K $17.66/SF
− OpEx
−$34.9K −$5.30/SF
NOI
$81.4K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$1,628,200
Cap Rate 7%
$1,163,000
Cap Rate 9%
$904,556
Alternative Uses
Best Use
Retail
$1.16M
$1.02M – $1.36M
NOI $81,410 @ 7.0% cap · market cap 3.39%
Second Best
Office B
$1.01M
$881.4K – $1.18M
NOI $70,515 @ 7.0% cap · market cap 2.94%
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,119 @ 7.0% cap · market cap 4.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,593
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Remodeled office building with parking and development potential.
Where is this office building located?
The property is located at 522 E Front St Traverse City, MI.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Newly remodeled with over 6,500 sq. ft. on the main floor and 1,000 sq. ft. of offices in the lower level.; Large on‑site parking lot.; Zoned C‑4a for multiple commercial uses.
