Contiguous Flex Space
New
For Sale
$595,000
723 Lake Avenue, Traverse City, MI 49684
MULTI_FAMILY - Traverse City, MI
Property Size4,800 SF
Lot Size0.50 Acres
Price / SF$123.96
Days on Market5
Property Features for 723 Lake Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning
Residential,Other
Zoning description
Residential
Elementary school district
Traverse City Area Public Schools
Middle school district
Traverse City Area Public Schools
High school district
Traverse City Area Public Schools
Directions
Cass Street to 11th Street, go East on 11th Street one block, the subject property is on the East side of the Road.
Subdivision
Grand Traverse
Standard status
Active
Size
4,800 SF
Lot size
0.50 Acres
Taxes and HOA fees
Tax Description
LOT 9 AND THE S 59,9 FT OF THE W 178.91 FT OF LOT 8, HANNAH LAY & CO'S 2ND ADD. LSO THE NE 1/4 OF SEC 10, T27N, R11W, DESCRIBED AS FOLLOWS: BEG AT THE SE COR OF LOT 9, BLK 19, TH S 89?57'00" E, 10 FT ALONG THE S LINE OF LOT 9 EXTENDED; TH N 00?03'00" W, 5
Legal Description
LOT 9 AND THE S 59,9 FT OF THE W 178.91 FT OF LOT 8, HANNAH LAY & CO'S 2ND ADD. LSO THE NE 1/4 OF SEC 10, T27N, R11W, DESCRIBED AS FOLLOWS: BEG AT THE SE COR OF LOT 9, BLK 19, TH S 89?57'00" E, 10 FT ALONG THE S LINE OF LOT 9 EXTENDED; TH N 00?03'00" W, 5
Building Details
Year built
1970
Number of units
1
Building materials
Block
Roof type
Asphalt
Listing Agency:
Charlevoix Properties
(231) 536-3300
Listed By:
Gary Strange
(231) 536-3300
Added: Aug 13
Changed: Aug 15
Last Checked: Aug 17 at 10:06AM
MLS# 1949365
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 contiguous three-property assemblage includes commercial, professional office, warehouse, and storage improvements. The larger 60-by-80-foot building contains 4,800 square feet of storage, while the combined properties provide over 9,000 square feet of warehouse area and 2,275 square feet of office space. The buildings feature block construction, asphalt roofs, and a 1970 construction date.
The property is located at 723 Lake Avenue in Traverse City, with downtown restaurants and shopping within walking distance. A walking trail borders the southern edge, and the adjoining eastern property is owned by MDOT and the City of Traverse City, creating an open area extending toward Boardman Lake. The assemblage offers existing commercial improvements and multiple occupancy configurations across its three adjoining parcels.
The property is located at 723 Lake Avenue in Traverse City, with downtown restaurants and shopping within walking distance. A walking trail borders the southern edge, and the adjoining eastern property is owned by MDOT and the City of Traverse City, creating an open area extending toward Boardman Lake. The assemblage offers existing commercial improvements and multiple occupancy configurations across its three adjoining parcels.
Key Highlights
- Three individual, contiguous properties at 723 Lake Avenue, Traverse City, MI 49684
- Over 9,000 sq. ft. of warehouse space plus 2,275 sq. ft. of office area
- 60‑by‑80‑foot building with 4,800 sq. ft. of storage
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
$51,408
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
8.64%
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%
$1,028,160
$1.0M
Cap Rate 7%
$734,400
$734.4K
Cap Rate 9%
$571,200
$571.2K
Market Conditions
NOI Build-Up for 4,800 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
$80.6K $16.80/SF
− Vacancy
−$12.1K −$2.52/SF
EGI
$68.5K $14.28/SF
− OpEx
−$17.1K −$3.57/SF
NOI
$51.4K $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%
$1,028,160
Cap Rate 7%
$734,400
Cap Rate 9%
$571,200
Alternative Uses
Best Use
Office B
$734.4K
$642.6K – $856.8K
NOI $51,408 @ 7.0% cap · market cap 8.64%
Second Best
Flex RnD
$706.3K
$618.0K – $824.1K
NOI $49,443 @ 7.0% cap · market cap 8.31%
Theoretical Best
Office A
$1.04M
$912.4K – $1.22M
NOI $72,991 @ 7.0% cap · market cap 12.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,062
Businesses Nearby
Balanced
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 Office in Midwest region
Questions? Ask Rey
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- Cordwood BBQ — 448 E Front St, Traverse City, MI 49686
- Across the Board Provisions — 215 w eighth st apt b, traverse city, mi 49684
Frequently Asked Questions
What type of property is this?
Flex space - Three adjoining properties combine warehouse, office, and storage uses near downtown Traverse City.
Where is this flex space located?
The property is located at 723 Lake Avenue Traverse City, MI.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Three individual, contiguous properties at 723 Lake Avenue, Traverse City, MI 49684; Over 9,000 sq. ft. of warehouse space plus 2,275 sq. ft. of office area; 60‑by‑80‑foot building with 4,800 sq. ft. of storage
