Retail Property with
For Sale
$949,900
6375 Traverse Highway, Traverse City, MI 49684
Commercial building with retail, service, parts, warranty, and residential components on a sizable commercial parcel.
Property Size4,608 SF
Lot Size1.07 Acres
Price / SF$206.14
Days on Market1479
Property Features for 6375 Traverse Highway
General Information
Standard status
Active
Size
4,608 SF
Lot size
1.07 Acres
Property subtype
General Commercial
Additional Details
Business Included
Yes
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$4,145
Amenities
3
irregular
Building Details
Year Built
2001
Listed By:
All Non Member Activity
Source:
Xome
Added: Aug 18, 2022
Changed: Sep 2
Last Checked: Sep 4 at 4:07AM
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 All Non Member Activity
Investment Insights
Based on property information with market context.
Located at 6375 Traverse Highway in Traverse City, this retail property includes more than 4,600 square feet of total space on 1.07 acres. The building dates to 2001 and incorporates a main retail area with parts, service, and warranty operations for outdoor power equipment.
A 750-square-foot apartment above the retail area provides one bedroom and one bathroom. The property is associated with an outdoor power equipment business that has operated continuously since 1979, with servicing and product support for multiple equipment brands. M-72 W frontage and proximity to West Grand Traverse Bay, approximately five minutes away, add context to the site's commercial setting.
A 750-square-foot apartment above the retail area provides one bedroom and one bathroom. The property is associated with an outdoor power equipment business that has operated continuously since 1979, with servicing and product support for multiple equipment brands. M-72 W frontage and proximity to West Grand Traverse Bay, approximately five minutes away, add context to the site's commercial setting.
Key Highlights
- Over 4,600 total sq.ft. on 1.07 acres
- 750sq.ft one bed/one bath apartment above the main retail area
- Outdoor power equipment business operating continuously since 1979
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
$56,977
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
6.00%
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%
$1,139,540
$1.1M
Cap Rate 7%
$813,957
$814.0K
Cap Rate 9%
$633,078
$633.1K
Market Conditions
NOI Build-Up for 4,608 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
$88.5K $19.20/SF
− Vacancy
−$7.1K −$1.54/SF
EGI
$81.4K $17.66/SF
− OpEx
−$24.4K −$5.30/SF
NOI
$57.0K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$1,139,540
Cap Rate 7%
$813,957
Cap Rate 9%
$633,078
Alternative Uses
Best Use
Retail
$814.0K
$712.2K – $949.6K
NOI $56,977 @ 7.0% cap · market cap 6.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.00M
$875.9K – $1.17M
NOI $70,071 @ 7.0% cap · market cap 7.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
58
Businesses Nearby
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 Retail 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?
Retail space - Commercial building with retail, service, parts, warranty, and residential components on a sizable commercial parcel.
Where is this retail space located?
The property is located at 6375 Traverse Highway Traverse City, MI.
What is the asking price?
The asking price for this property is $949,900.
What are key features of this property?
This property features: Over 4,600 total sq.ft. on 1.07 acres; 750sq.ft one bed/one bath apartment above the main retail area; Outdoor power equipment business operating continuously since 1979
