Two-Bay Auto
New
For Sale
$195,000
5861 W Houghton Lake Dr, Houghton Lake, MI 48629
Service-oriented commercial building with office space, customer restroom, parking, and recent building upgrades.
Property Size1,161 SF
Price / SF$167.96
Days on Market5
Property Features for 5861 W Houghton Lake Dr
General Information
Standard status
Active
Size
1,161 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Drive-In Doors
2
Service Bays
2
Amenities
office space
restroom
floor drain
parking lot
Houghton Lake views
Building Details
Buildings
1
Listing Agency:
Century
(989) 732-2477
Listed By:
Stephanie Adamson · License #6?5?0?1?4?3?3?5?2?0
Source:
Smithrealtygaylord
Added: Aug 25
Changed: Aug 28
Last Checked: Aug 29 at 10:13AM
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 Century
Investment Insights
Based on property information with market context.
This 1,161-square-foot auto shop includes office space, a restroom, and a two-bay garage equipped with a floor drain. The property also provides a large parking area for customer vehicles and business equipment. Recent improvements include a new roof, new well pump, updated electrical service, exterior work, and fresh interior paint and flooring.
Positioned on M-55 at 5861 W Houghton Lake Drive, the building offers Houghton Lake views and direct exposure to the surrounding roadway. Its combination of service-bay space, office support areas, parking, and completed updates creates a functional setup for an automotive or repair operation.
Positioned on M-55 at 5861 W Houghton Lake Drive, the building offers Houghton Lake views and direct exposure to the surrounding roadway. Its combination of service-bay space, office support areas, parking, and completed updates creates a functional setup for an automotive or repair operation.
Key Highlights
- 1,161‑square‑foot commercial building on M‑55
- Two‑bay garage with floor drain
- Office space and restroom included
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
$8,407
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
4.31%
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%
$168,140
$168.1K
Cap Rate 7%
$120,100
$120.1K
Cap Rate 9%
$93,411
$93.4K
Market Conditions
NOI Build-Up for 1,161 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
$13.9K $12.00/SF
− Vacancy
−$1.9K −$1.66/SF
EGI
$12.0K $10.34/SF
− OpEx
−$3.6K −$3.10/SF
NOI
$8.4K $7.24/SF
Area
Roscommon County, MI
Vacancy
13.80%
Lease Rate
$12.00 /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%
$168,140
Cap Rate 7%
$120,100
Cap Rate 9%
$93,411
Alternative Uses
Best Use
Retail
$120.1K
$105.1K – $140.1K
NOI $8,407 @ 7.0% cap · market cap 4.31%
Second Best
Flex RnD
$101.0K
$88.4K – $117.9K
NOI $7,071 @ 7.0% cap · market cap 3.63%
Theoretical Best
Office A
$191.1K
$167.2K – $222.9K
NOI $13,375 @ 7.0% cap · market cap 6.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
2
Service bays
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
106
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
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.
Similar Off Market Nearby
- muffler man auto service center — 5861 W Houghton Lake Dr, Houghton Lake, MI 48629
- Jimmy's Collision Repair Center — 6771 W Houghton Lake Dr, Houghton Lake, MI 48629
Frequently Asked Questions
What type of property is this?
Auto shop - Service-oriented commercial building with office space, customer restroom, parking, and recent building upgrades.
Where is this auto shop located?
The property is located at 5861 W Houghton Lake Dr Houghton Lake, MI.
What is the asking price?
The asking price for this property is $195,000.
What are key features of this property?
This property features: 1,161‑square‑foot commercial building on M‑55; Two‑bay garage with floor drain; Office space and restroom included
