Contiguous Flex Space
For Sale
$495,000
807 Lake Avenue, Traverse City, MI 49684
Three adjoining buildings combine warehouse, office, and storage space with flexible commercial use potential.
Property Size4,927 SF
Days on Market12
Property Features for 807 Lake Avenue
General Information
Standard status
Active
Size
4,927 SF
Property subtype
Multi Family
Zoning
R-3
Additional Details
Office Build-Out
2,275 SF
Building Details
Building Size
4,927 SF
Year Built
1985
Buildings
3
Listing Agency:
Charlevoix Properties
(231) 536-3300
Listed By:
Gary Strange
Source:
Themittengroup
Added: Aug 13
Changed: Aug 24
Last Checked: Aug 23 at 6:59AM
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 Charlevoix Properties
Investment Insights
Based on property information with market context.
This offering includes three contiguous properties with a combined mix of commercial, professional office, warehouse, and storage improvements. The portfolio provides over 9,000 sq ft of warehouse area, 2,275 sq ft of office space, and more than 38,000 sq ft of property across nearly one acre. A 60-by-80-foot building contains 4,800 sq. ft. of storage space. The improvements date to 1985, and the properties are zoned R-3.
The site adjoins property owned by MDOT and the City of Traverse City, creating an open area extending toward Boardman Lake. A walking trail borders the southern boundary, while downtown Traverse City is within a short walk. The property has a bikeScore of 93 and a walkScore of 80.
The three-building configuration supports continued commercial use, professional offices, warehouse operations, or separately occupied units, subject to applicable zoning and approvals.
The site adjoins property owned by MDOT and the City of Traverse City, creating an open area extending toward Boardman Lake. A walking trail borders the southern boundary, while downtown Traverse City is within a short walk. The property has a bikeScore of 93 and a walkScore of 80.
The three-building configuration supports continued commercial use, professional offices, warehouse operations, or separately occupied units, subject to applicable zoning and approvals.
Key Highlights
- Three contiguous properties with over 38,000 sq ft of property, totaling just under 1 full acre
- Over 9,000 sq ft of warehouse space and 2,275 sq ft of offices
- 4,800 sq. ft. of storage in a 60X80 building
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
$39,209
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
7.92%
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%
$784,180
$784.2K
Cap Rate 7%
$560,129
$560.1K
Cap Rate 9%
$435,656
$435.7K
Market Conditions
NOI Build-Up for 4,927 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
$49.1K $9.96/SF
− Vacancy
−$2.9K −$0.60/SF
EGI
$46.1K $9.36/SF
− OpEx
−$6.9K −$1.40/SF
NOI
$39.2K $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%
$784,180
Cap Rate 7%
$560,129
Cap Rate 9%
$435,656
Alternative Uses
Best Use
Office B
$753.8K
$659.6K – $879.5K
NOI $52,768 @ 7.0% cap · market cap 10.66%
Second Best
Flex RnD
$725.0K
$634.4K – $845.9K
NOI $50,751 @ 7.0% cap · market cap 10.25%
Theoretical Best
Office A
$1.07M
$936.5K – $1.25M
NOI $74,922 @ 7.0% cap · market cap 15.14%
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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Frequently Asked Questions
What type of property is this?
Flex space - Three adjoining buildings combine warehouse, office, and storage space with flexible commercial use potential.
Where is this flex space located?
The property is located at 807 Lake Avenue Traverse City, MI.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Three contiguous properties with over 38,000 sq ft of property, totaling just under 1 full acre; Over 9,000 sq ft of warehouse space and 2,275 sq ft of offices; 4,800 sq. ft. of storage in a 60X80 building
