Downtown Retail Office
For Sale
$610,000
B-232 E State St, Traverse City, MI 49684
Newly constructed 2,034 SF commercial condo for retail or professional office use in downtown Traverse City.
Property Size2,034 SF
Price / SF$299.90
Days on Market98
Property Features for B-232 E State St
General Information
Standard status
Active
Size
2,034 SF
Building Details
Year Built
2025
Listing Agency:
Three West, LLC
(231) 534-5225
Listed By:
Kevin Endres · License #6502377374
(231) 534-5225
Source:
Exprealty
Added: May 12
Changed: Aug 13
Last Checked: Aug 16 at 10:07AM
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 Three West, LLC
Investment Insights
Based on property information with market context.
This 2,034 SF commercial condo space was constructed in 2025 and is positioned as a downtown retail or professional office opportunity. The unit is well suited to a tenant looking for a fresh, recently built space that can be adapted for either retail operations or office use.
Located in the heart of Traverse City, Michigan, the property is described as having high visibility, supporting storefront and street-facing presence.
The offering is a commercial condo within a larger downtown environment, providing a clear, flexible retail/office footprint for a qualified owner-occupant or investor.
Located in the heart of Traverse City, Michigan, the property is described as having high visibility, supporting storefront and street-facing presence.
The offering is a commercial condo within a larger downtown environment, providing a clear, flexible retail/office footprint for a qualified owner-occupant or investor.
Key Highlights
- Newly constructed 2,034 SF commercial condo space in downtown Traverse City
- Constructed in 2025
- Suitable for retail or professional office 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
$25,150
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
4.12%
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%
$503,000
$503.0K
Cap Rate 7%
$359,286
$359.3K
Cap Rate 9%
$279,444
$279.4K
Market Conditions
NOI Build-Up for 2,034 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
$39.1K $19.20/SF
− Vacancy
−$3.1K −$1.54/SF
EGI
$35.9K $17.66/SF
− OpEx
−$10.8K −$5.30/SF
NOI
$25.2K $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%
$503,000
Cap Rate 7%
$359,286
Cap Rate 9%
$279,444
Alternative Uses
Best Use
Retail
$359.3K
$314.4K – $419.2K
NOI $25,150 @ 7.0% cap · market cap 4.12%
Second Best
Office B
$311.2K
$272.3K – $363.1K
NOI $21,784 @ 7.0% cap · market cap 3.57%
Theoretical Best
Office A
$441.9K
$386.6K – $515.5K
NOI $30,930 @ 7.0% cap · market cap 5.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,864
Businesses Nearby
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?
Office units - Newly constructed 2,034 SF commercial condo for retail or professional office use in downtown Traverse City.
Where is this office units located?
The property is located at B-232 E State St Traverse City, MI.
What is the asking price?
The asking price for this property is $610,000.
What are key features of this property?
This property features: Newly constructed 2,034 SF commercial condo space in downtown Traverse City; Constructed in 2025; Suitable for retail or professional office use
