Equipped Retail
New
For Sale
$5,000,000
939 S US-31, Traverse City, MI 49685
Updated commercial facilities include refrigeration, dedicated parking, and delivery capability.
Property Size11,900 SF
Days on Market7
Property Features for 939 S US-31
General Information
Standard status
Active
Size
11,900 SF
Property subtype
Retail
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
beer cave
walk in commercial refrgeration setup
Building Details
Building Size
11,900 SF
Year Built
1996
Listing Agency:
Real Estate One Gaylord
Listed By:
Gurpreet Singh
(347) 471-7184
Source:
Themittengroup
Added: Sep 18
Changed: Sep 23
Last Checked: Sep 22 at 11:29PM
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 Real Estate One Gaylord
Investment Insights
Based on property information with market context.
This retail storefront at 939 S US-31 in Traverse City is configured for an operating beverage business. The property includes a dedicated beer cave, walk-in commercial refrigeration, and retail areas supporting spirits, craft beer, and specialty barrel selections. DoorDash delivery integration provides an established off-site ordering channel.
The site sits along US-31 in the Greater Grand Traverse region and includes dedicated parking. Facilities were updated in 2024, while the building dates to 1996. Flexible operating hours are also in place. Real estate, business operations, and inventory options are available as part of the offering.
The site sits along US-31 in the Greater Grand Traverse region and includes dedicated parking. Facilities were updated in 2024, while the building dates to 1996. Flexible operating hours are also in place. Real estate, business operations, and inventory options are available as part of the offering.
Key Highlights
- Retail storefront at 939 S US‑31, Traverse City, MI 49685
- Dedicated beer cave and walk‑in commercial refrigeration
- Facilities updated in 2024; building constructed in 1996
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
$147,141
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
2.94%
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%
$2,942,820
$2.9M
Cap Rate 7%
$2,102,014
$2.1M
Cap Rate 9%
$1,634,900
$1.6M
Market Conditions
NOI Build-Up for 11,900 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
$228.5K $19.20/SF
− Vacancy
−$18.3K −$1.54/SF
EGI
$210.2K $17.66/SF
− OpEx
−$63.1K −$5.30/SF
NOI
$147.1K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$2,942,820
Cap Rate 7%
$2,102,014
Cap Rate 9%
$1,634,900
Alternative Uses
Best Use
Retail
$2.10M
$1.84M – $2.45M
NOI $147,141 @ 7.0% cap · market cap 2.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.59M
$2.26M – $3.02M
NOI $180,956 @ 7.0% cap · market cap 3.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
78
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49685, MI
20,856
Population
9,395
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
95%
High-School Grad
54.2 sq mi
ZIP Area
385
Density / Sq Mi
$82,639
Median Household Income
$45,783
Median Earnings
$1,338
Median Rent
$309,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Storefront property - Updated commercial facilities include refrigeration, dedicated parking, and delivery capability.
Where is this storefront property located?
The property is located at 939 S US-31 Traverse City, MI.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: Retail storefront at 939 S US‑31, Traverse City, MI 49685; Dedicated beer cave and walk‑in commercial refrigeration; Facilities updated in 2024; building constructed in 1996
