Contiguous Flex Space
For Sale
$395,000
811 Lake Avenue, Traverse City, MI 49684
Three connected properties combine commercial office, warehouse, and storage configurations within an R-3 zoning district.
Property Size1,770 SF
Days on Market12
Property Features for 811 Lake Avenue
General Information
Standard status
Active
Size
1,770 SF
Property subtype
Mixed Use
Building Details
Building Size
1,770 SF
Year Built
1985
Listing Agency:
Charlevoix Properties
(231) 536-3300
Listed By:
Gary Strange
Source:
Themittengroup
Added: Aug 13
Changed: Aug 24
Last Checked: Aug 23 at 10:22AM
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 comprises three individually deeded, contiguous properties with a combined mix of commercial, professional office, warehouse, and storage space. The improvements include over 9,000 square feet of warehouse area, 2,275 square feet of offices, and 4,800 square feet of storage within a 60-by-80-foot building. The properties date to 1985 and have supported commercial and office uses over several decades.
Located at 811 Lake Ave in Traverse City, the site totals over 38,000 square feet, or just under one acre. The eastern boundary adjoins property owned by MDOT and the City of Traverse City, while a walking trail runs along the southern boundary toward Boardman Lake. Downtown Traverse City is within walking distance, with restaurants and shopping nearby. The property is zoned R-3 and has a bike score of 69 and a walk score of 58.
Located at 811 Lake Ave in Traverse City, the site totals over 38,000 square feet, or just under one acre. The eastern boundary adjoins property owned by MDOT and the City of Traverse City, while a walking trail runs along the southern boundary toward Boardman Lake. Downtown Traverse City is within walking distance, with restaurants and shopping nearby. The property is zoned R-3 and has a bike score of 69 and a walk score of 58.
Key Highlights
- Three individually contiguous properties at 811 Lake Ave, Traverse City, MI 49684
- 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
$18,957
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
4.80%
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%
$379,140
$379.1K
Cap Rate 7%
$270,814
$270.8K
Cap Rate 9%
$210,633
$210.6K
Market Conditions
NOI Build-Up for 1,770 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
$29.7K $16.80/SF
− Vacancy
−$4.5K −$2.52/SF
EGI
$25.3K $14.28/SF
− OpEx
−$6.3K −$3.57/SF
NOI
$19.0K $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%
$379,140
Cap Rate 7%
$270,814
Cap Rate 9%
$210,633
Alternative Uses
Best Use
Office B
$270.8K
$237.0K – $316.0K
NOI $18,957 @ 7.0% cap · market cap 4.80%
Second Best
Flex RnD
$260.5K
$227.9K – $303.9K
NOI $18,232 @ 7.0% cap · market cap 4.62%
Theoretical Best
Office A
$384.5K
$336.4K – $448.6K
NOI $26,915 @ 7.0% cap · market cap 6.81%
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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Similar Off Market Nearby
- Cousin Jenny's Cornish Pasties — 222 E State St Suite 102, Traverse City, MI 49684
- Forrest, A Food Studio and Private Chef — 408 s union st, traverse city, mi 49684
- 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 connected properties combine commercial office, warehouse, and storage configurations within an R-3 zoning district.
Where is this flex space located?
The property is located at 811 Lake Avenue Traverse City, MI.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Three individually contiguous properties at 811 Lake Ave, Traverse City, MI 49684; 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
