Contiguous Flex Space
For Sale
$395,000
811 Lake Avenue, Traverse City, MI 49684
Multi-Family, Traverse City, MI
Property Size1,770 SF
Lot Size0.15 Acres
Price / SF$223.16
Days on Market11
Property Features for 811 Lake Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning
Multi-Family
Zoning description
Multi-Family
Middle school
Traverse City West Middle School
High school
Traverse City High School
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
1,770 SF
Lot size
0.15 Acres
Taxes and HOA fees
Tax Description
LOT 11 EX E 35FT BLK 10 HANNA LAY & CO'S 2ND ADD
Legal Description
LOT 11 EX E 35FT BLK 10 HANNA LAY & CO'S 2ND ADD
Building Details
Year built
1985
Number of units
1
Building materials
Block
Roof type
Membrane
Listing Agency:
Charlevoix Properties
(231) 536-3300
Listed By:
Gary Strange
(231) 536-3300
Added: Aug 13
Changed: Aug 21
Last Checked: Aug 23 at 4:06PM
MLS# 1949269
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 offering includes three contiguous commercial properties with a history of office and warehouse use. The improvements include professional office areas and warehouse space, including a 60-by-80-foot building with 4,800 square feet of storage. Construction materials are block, the roof is membrane, and the properties were built in 1985.
Located at 811 Lake Avenue in Traverse City, the site adjoins property owned by MDOT and the City of Traverse City along its eastern boundary. A walking trail borders the southern edge and provides access toward Boardman Lake. Downtown Traverse City is within walking distance, with restaurants and shopping nearby.
Located at 811 Lake Avenue in Traverse City, the site adjoins property owned by MDOT and the City of Traverse City along its eastern boundary. A walking trail borders the southern edge and provides access toward Boardman Lake. Downtown Traverse City is within walking distance, with restaurants and shopping nearby.
Key Highlights
- Three individual properties are contiguous
- 60‑by‑80‑foot building includes 4,800 square feet of storage
- Office and warehouse improvements support commercial use
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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Frequently Asked Questions
What type of property is this?
Flex space - Three adjoining commercial properties combine office and warehouse improvements with access to a nearby walking trail and Boardman Lake.
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 individual properties are contiguous; 60‑by‑80‑foot building includes 4,800 square feet of storage; Office and warehouse improvements support commercial use
