Traverse City Commercial
For Sale
$869,000
5744 Denali Drive, Traverse City, MI 49684
9,600 SF commercial building in a light industrial park.
Property Size9,600 SF
Price / SF$90.52
Days on Market261
Property Features for 5744 Denali Drive
General Information
Standard status
Active
Size
9,600 SF
Property subtype
Mixed Use
Building Details
Year Built
2000
Listing Agency:
Coldwell Banker Schmidt Family Of Companies
(231) 929-7985
Listed By:
Mark Hagan · License #6506006708
(231) 929-7985
Source:
Cbcworldwide
Added: Dec 3, 2025
Changed: Jul 6
Last Checked: Jul 31 at 12:13PM
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 Family Of Companies
Investment Insights
Based on property information with market context.
Located on the west side of Traverse City, Michigan, this 9,600 square foot commercial building is situated in a light industrial park, approximately 4 miles from downtown and with accessibility from M-72. The building features two 12' x 14' sliding doors, a 400 amp 3-phase electric system, and a reinforced concrete floor. Interior spaces include a small office, a half bath, and a break room. The property has seven entrances and an outdoor loading dock. This well-insulated, multi-use storage condo is suitable for boat or RV storage, as well as light industrial ventures. The land under the building is included in the sale. The Home Owners Association will be re-subdividing to include the immediate surrounding land with the building.
Key Highlights
- 9,600 sq/ft commercial building in a growing area of Traverse City
- Excellent location: 4 miles from downtown and easily accessible off M‑72
- Multi‑use potential: Ideal for boat/RV storage or light industrial ventures
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
$76,397
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
8.79%
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%
$1,527,940
$1.5M
Cap Rate 7%
$1,091,386
$1.1M
Cap Rate 9%
$848,856
$848.9K
Market Conditions
NOI Build-Up for 9,600 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
$95.6K $9.96/SF
− Vacancy
−$5.7K −$0.60/SF
EGI
$89.9K $9.36/SF
− OpEx
−$13.5K −$1.40/SF
NOI
$76.4K $7.96/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
15.00%
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%
$1,527,940
Cap Rate 7%
$1,091,386
Cap Rate 9%
$848,856
Alternative Uses
Best Use
Warehouse
$1.09M
$955.0K – $1.27M
NOI $76,397 @ 7.0% cap · market cap 8.79%
Second Best
Industrial
$799.2K
$699.3K – $932.4K
NOI $55,944 @ 7.0% cap · market cap 6.44%
Theoretical Best
Office A
$2.09M
$1.82M – $2.43M
NOI $145,981 @ 7.0% cap · market cap 16.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
22
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
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 Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Warehouse - 9,600 SF commercial building in a light industrial park.
Where is this warehouse located?
The property is located at 5744 Denali Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $869,000.
What are key features of this property?
This property features: 9,600 sq/ft commercial building in a growing area of Traverse City; Excellent location: **4 miles from downtown and easily accessible off M‑72**; Multi‑use potential: Ideal for boat/RV storage or light industrial ventures
