Mixed-Use Property With Rental
For Sale
$1,870,000
525 W Mitchell Street, Petoskey, MI 49770
COMMERCIAL - Petoskey, MI
Property Size10,580 SF
Price / SF$176.75
Days on Market49
Property Features for 525 W Mitchell Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
COMMERCIAL-IMPROVED
Window features
Vinyl Frames
Elementary school district
Petoskey
Middle school district
Petoskey
High school district
Petoskey
Directions
Across from McLaren Northern Regional Hospital- Petoskey, MI US HWY 131 / 525 W. Mitchell Street
Subdivision
Petoskey City
Standard status
Active
APN
52-19-06-126-024 & 028
Size
10,580 SF
Taxes and HOA fees
Tax Description
**See Agent Remarks
Legal Description
**See Agent Remarks
Amenities
security system
commercial laundry room
wi-fi available
basement storage
Building Details
Roof type
Shingle
Listing Agency:
@properties Christie's International Real Estate - Petoskey · RE/MAX International
(231) 881-9400
Listed By:
Carole Griffin
(231) 838-4977
Added: Jul 2
Changed: Aug 4
Last Checked: Aug 19 at 6:06AM
MLS# 478039
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.
This mixed-use property includes approximately 10,580 sq ft of rental opportunity across a house, 16 micro rental units with private baths, and two large commercial spaces suited for office or retail use. The house includes two bedrooms, two bathrooms, a backyard, and one garage. Additional features include basement storage, a commercial laundry room, a security system, and off-street parking for approximately 10 cars. City water and sewer serve the property, and wi-fi is available.
The property is located across from a regional hospital and within walking distance of downtown restaurants and the waterfront. Recent improvements include a new roof, new windows, and updated vanities and sinks in the smaller units. All units are occupied and leased. The offering also references 516 Monroe Street in addition to 525 W. Mitchell Street.
The property is located across from a regional hospital and within walking distance of downtown restaurants and the waterfront. Recent improvements include a new roof, new windows, and updated vanities and sinks in the smaller units. All units are occupied and leased. The offering also references 516 Monroe Street in addition to 525 W. Mitchell Street.
Key Highlights
- Approximately 10,580 sq ft of rental opportunity
- 16 micro rental units with bath
- Two large commercial spaces for office or retail use
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
$126,677
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
6.77%
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%
$2,533,540
$2.5M
Cap Rate 7%
$1,809,671
$1.8M
Cap Rate 9%
$1,407,522
$1.4M
Market Conditions
NOI Build-Up for 10,580 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
$200.6K $18.96/SF
− Vacancy
−$31.7K −$3.00/SF
EGI
$168.9K $15.96/SF
− OpEx
−$42.2K −$3.99/SF
NOI
$126.7K $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%
$2,533,540
Cap Rate 7%
$1,809,671
Cap Rate 9%
$1,407,522
Alternative Uses
Best Use
Office B
$1.81M
$1.58M – $2.11M
NOI $126,677 @ 7.0% cap · market cap 6.77%
Second Best
Mixed Use
$1.76M
$1.54M – $2.05M
NOI $123,238 @ 7.0% cap · market cap 6.59%
Theoretical Best
Warehouse
$2.39M
$2.10M – $2.79M
NOI $167,604 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
17
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
960
Businesses Nearby
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?
Mixed-use property - Mixed-use property combines residential rentals, office and retail space, and an on-site house.
Where is this mixed-use property located?
The property is located at 525 W Mitchell Street Petoskey, MI.
What is the asking price?
The asking price for this property is $1,870,000.
What are key features of this property?
This property features: Approximately 10,580 sq ft of rental opportunity; 16 micro rental units with bath; Two large commercial spaces for office or retail use
