Professional Office Building with Finished
For Sale
$260,500
537 S Garfield Avenue, Traverse City, MI 49686
Commercial, Traverse City, MI
Property Size1,608 SF
Lot Size0.19 Acres
Price / SF$162
Days on Market235
Property Features for 537 S Garfield Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Parking features
Parking Lot
Exterior features
Vinyl
Lot features
Freestanding
Directions
East side of S Garfield Ave between E Eighth St and Hannah Ave.
Subdivision
Grand Traverse
Standard status
Active
Size
1,608 SF
Lot size
0.19 Acres
Taxes and HOA fees
Tax Description
UNIT 1 - GARFIELD PLAZA PHASE 2 GTC CONDO SUB PLAN NO 30 0624-0536 MASTER DEED FILED NOVEMBER 1, 1984.
Legal Description
UNIT 1 - GARFIELD PLAZA PHASE 2 GTC CONDO SUB PLAN NO 30 0624-0536 MASTER DEED FILED NOVEMBER 1, 1984.
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Three West, LLC
(231) 929-2955
Listed By:
Noah Endres · License #6501461941
(231) 632-1125
Added: Jan 13
Changed: Sep 1
Last Checked: Sep 5 at 3:06PM
MLS# 1941710
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 1,608-square-foot office building provides a practical layout for professional users, with two private offices, a reception and waiting area, and a private restroom on the main level. The finished basement adds another office and restroom, expanding the usable configuration beyond the primary floor. Frame construction, vinyl exterior siding, an asphalt roof, and a dedicated parking lot are included.
The property occupies 0.19 acres at the intersection of S Garfield Ave and E Eighth, an area reporting more than 21,000 cars per day. The building is available for purchase and is also offered for lease.
The property occupies 0.19 acres at the intersection of S Garfield Ave and E Eighth, an area reporting more than 21,000 cars per day. The building is available for purchase and is also offered for lease.
Key Highlights
- 1,608‑square‑foot office building on 0.19 acres
- Two private offices plus reception and waiting area
- Finished basement with an additional office and restroom
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
$17,222
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
6.61%
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%
$344,440
$344.4K
Cap Rate 7%
$246,029
$246.0K
Cap Rate 9%
$191,356
$191.4K
Market Conditions
NOI Build-Up for 1,608 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
$27.0K $16.80/SF
− Vacancy
−$4.1K −$2.52/SF
EGI
$23.0K $14.28/SF
− OpEx
−$5.7K −$3.57/SF
NOI
$17.2K $10.71/SF
Area
Grand Traverse County, MI
Vacancy
15.00%
Lease Rate
$16.80 /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%
$344,440
Cap Rate 7%
$246,029
Cap Rate 9%
$191,356
Alternative Uses
Best Use
Office B
$246.0K
$215.3K – $287.0K
NOI $17,222 @ 7.0% cap · market cap 6.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$349.3K
$305.7K – $407.5K
NOI $24,452 @ 7.0% cap · market cap 9.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
21,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
988
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
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Professional office space includes private offices, reception area, restrooms, and a finished basement.
Where is this office building located?
The property is located at 537 S Garfield Avenue Traverse City, MI.
What is the asking price?
The asking price for this property is $260,500.
What are key features of this property?
This property features: 1,608‑square‑foot office building on 0.19 acres; Two private offices plus reception and waiting area; Finished basement with an additional office and restroom
