Renovated Flex Space with Loading
For Sale
$979,000
5746 Denali Drive, Traverse City, MI 49684
Freestanding industrial condo with workshop areas, secure access, and practical loading capabilities.
Property Size12,000 SF
Price / SF$81.58
Days on Market428
Property Features for 5746 Denali Drive
General Information
Standard status
Active
Size
12,000 SF
Property subtype
Mixed Use
Warehouse & Industrial
Drive-In Doors
2
Power
400 amps
Three-Phase Power
Yes
Amenities
security cameras
electric keypads
Electric
3
Concrete
Metal
Shared Driveway, Paved Driveway.
Freestanding. Industrial Area, Business Park, Private Roads, Gravel Road, Asphalt.
Building Details
Year Built
2000
Listed By:
Coldwell Banker Schmidt Traver
Source:
Xome
Added: Jul 3, 2025
Changed: Sep 2
Last Checked: Sep 2 at 3:35PM
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 Traver
Investment Insights
Based on property information with market context.
This 12,000 square foot flex-space condo is located in a light industrial business park and includes two commercial-code workshop areas. The building features a reinforced concrete floor, 400 amp three-phase electric service, two 16' x 14' sliding doors, and an outdoor loading dock. A loft with 7-foot clearance adds storage or work area and can be reached by stairs or forklift. Mini-split systems provide temperature control, while electric keypads and security cameras support controlled access.
The property is at 5746 Denali Drive Unit E in Traverse City, Michigan, on private roads within an industrial area. M-72 West provides access to downtown Traverse City, approximately 4 miles away. The sale includes the land beneath the building; surrounding land is currently treated as common area, with HOA re-subdivision planned to include the immediate surrounding land.
The property is at 5746 Denali Drive Unit E in Traverse City, Michigan, on private roads within an industrial area. M-72 West provides access to downtown Traverse City, approximately 4 miles away. The sale includes the land beneath the building; surrounding land is currently treated as common area, with HOA re-subdivision planned to include the immediate surrounding land.
Key Highlights
- 12,000 sq/ft freestanding flex‑space condo
- Two 16'x14' sliding doors plus an outdoor loading dock
- 400 amp 3 phase electric service
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
$69,930
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
7.14%
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%
$1,398,600
$1.4M
Cap Rate 7%
$999,000
$999.0K
Cap Rate 9%
$777,000
$777.0K
Market Conditions
NOI Build-Up for 12,000 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
$108.0K $9.00/SF
− Vacancy
−$8.1K −$0.68/SF
EGI
$99.9K $8.33/SF
− OpEx
−$30.0K −$2.50/SF
NOI
$69.9K $5.83/SF
Area
Grand Traverse County, MI
Vacancy
7.50%
Lease Rate
$9.00 /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%
$1,398,600
Cap Rate 7%
$999,000
Cap Rate 9%
$777,000
Alternative Uses
Best Use
Flex RnD
$1.77M
$1.55M – $2.06M
NOI $123,608 @ 7.0% cap · market cap 12.63%
Second Best
Warehouse
$1.36M
$1.19M – $1.59M
NOI $95,496 @ 7.0% cap · market cap 9.75%
Theoretical Best
Office A
$2.61M
$2.28M – $3.04M
NOI $182,477 @ 7.0% cap · market cap 18.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
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
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Frequently Asked Questions
What type of property is this?
Flex space - Freestanding industrial condo with workshop areas, secure access, and practical loading capabilities.
Where is this flex space located?
The property is located at 5746 Denali Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $979,000.
What are key features of this property?
This property features: 12,000 sq/ft freestanding flex‑space condo; Two 16'x14' sliding doors plus an outdoor loading dock; 400 amp 3 phase electric service
