Flex Building with Overhead
For Sale
$619,000
8722 US-31, Grawn, MI 49637
Commercial, Grawn, MI
Property Size6,720 SF
Lot Size0.76 Acres
Price / SF$92.11
Days on Market557
Property Features for 8722 US-31
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Commercial
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking features
Parking Lot
Exterior features
Vinyl
Lot features
Inside Lot
Directions
From Chums Corner, West on 31 toward Interlochen, past Grawn Corners, building on right before Interlochen Corners.
Subdivision
Grand Traverse
Standard status
Active
Size
6,720 SF
Lot size
0.76 Acres
Taxes and HOA fees
Tax Description
GL 123-6 E 100' OF W 1586' OF S 330' OF SW 1/4 SEC 10 T26N R12W
Legal Description
GL 123-6 E 100' OF W 1586' OF S 330' OF SW 1/4 SEC 10 T26N R12W
Utilities
Water source
Private
Amenities
hot water boiler radiant heat
optic cable
metallic cable wiring
commercial foyer entrance
deck
full kitchen
12-foot overhead garage doors
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Bouwman Realty Group
(231) 631-4919
Listed By:
Laurie Bouwman
(231) 631-4919
Added: Feb 9, 2025
Changed: Aug 19
Last Checked: Aug 20 at 11:06PM
MLS# 1930749
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 quality-built 6,720-square-foot commercial flex building is configured with an open main layout and dedicated wet areas, including two bathrooms. The front offers retail and office space, while the second floor is set up for a potential separate unit, including plumbing for a kitchen and bathroom and a deck overlooking the wooded back lot. The main level also includes a full kitchen and a commercial foyer entrance.
At the rear, the building includes 12-foot overhead garage doors designed for heavy equipment, with an additional garage door entrance on the side. Interior systems include a hot water boiler with radiant heat, and the property has metallic cable wiring and fiber/optic cable.
Additional amenities include ample on-site parking and a cement approach with curbing. The building sits on approximately 0.76 acres and includes room to expand along the front side.
At the rear, the building includes 12-foot overhead garage doors designed for heavy equipment, with an additional garage door entrance on the side. Interior systems include a hot water boiler with radiant heat, and the property has metallic cable wiring and fiber/optic cable.
Additional amenities include ample on-site parking and a cement approach with curbing. The building sits on approximately 0.76 acres and includes room to expand along the front side.
Key Highlights
- 6,720 SF commercial building on US‑31 with high traffic count
- Two 12‑ft overhead garage doors in back plus a side garage door for heavy equipment access
- Hot water boiler radiant heat and metallic cable wiring throughout; optic cable available
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
$39,161
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
6.33%
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%
$783,220
$783.2K
Cap Rate 7%
$559,443
$559.4K
Cap Rate 9%
$435,122
$435.1K
Market Conditions
NOI Build-Up for 6,720 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
$60.5K $9.00/SF
− Vacancy
−$4.5K −$0.68/SF
EGI
$55.9K $8.33/SF
− OpEx
−$16.8K −$2.50/SF
NOI
$39.2K $5.83/SF
Area
Grand Traverse County, MI
Vacancy
7.50%
Lease Rate
$9.00 /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%
$783,220
Cap Rate 7%
$559,443
Cap Rate 9%
$435,122
Alternative Uses
Best Use
Retail
$1.19M
$1.04M – $1.38M
NOI $83,091 @ 7.0% cap · market cap 13.42%
Second Best
Flex RnD
$988.9K
$865.3K – $1.15M
NOI $69,221 @ 7.0% cap · market cap 11.18%
Theoretical Best
Office A
$1.46M
$1.28M – $1.70M
NOI $102,187 @ 7.0% cap · market cap 16.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
28
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49637, MI
3,466
Population
1,562
Households
2.2
Avg Household Size
44
Median Age
22%
College-Educated
91%
High-School Grad
22.2 sq mi
ZIP Area
156
Density / Sq Mi
$74,871
Median Household Income
$29,035
Median Earnings
$1,309
Median Rent
$228,100
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - 6,720 SF flex building with multiple overhead garage doors, radiant heat, and office/retail space plus a plumbed second-floor unit.
Where is this flex space located?
The property is located at 8722 US-31 Grawn, MI.
What is the asking price?
The asking price for this property is $619,000.
What are key features of this property?
This property features: 6,720 SF commercial building on US‑31 with high traffic count; Two 12‑ft overhead garage doors in back plus a side garage door for heavy equipment access; Hot water boiler radiant heat and metallic cable wiring throughout; optic cable available
