Commercial Real Estate Market in Otsego, MI
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
35 active listings and 342 off-market properties in Otsego, MI. Commercial property asks $91/SF to buy and $13.80/SF/Yr to lease.
Market Trends
Otsego, MI spans 49.5 square miles in Allegan County, Michigan. Figures below refresh monthly; last updated 31 August 2026.
Office
Office space in Otsego, MI asks $97/SF to buy. Vacancy runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Average Sale Price $/SF
Listings
Vacancy Rate % in Midwest region
Retail
Retail space in Otsego, MI asks $85/SF to buy. Vacancy runs 6.3% across the Midwest region in 2025, down from 8% in 2020.
Average Sale Price $/SF
Listings
Vacancy Rate % in Midwest region
Industrial
Industrial vacancy in Otsego, MI runs 4.9% across the Midwest region in 2025, up from 4.4% in 2019. Nearly 1.6x the 2022 low of 3.1%.
Vacancy Rate % in Midwest region
Multifamily
Multifamily space in Otsego, MI asks $87/SF to buy. Vacancy runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Average Sale Price $/SF
Listings
Vacancy Rate % in Midwest region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 71.7%
- Industrial 17.1%
- Special 4.6%
- Commercial 4.1%
- Civic 2.5%
Largest Zones share of zoned land by district
Single And Two Family Residential
General Industrial
Single Family Residential
Flood Hazard
Multiple Family
Otsego, MI zones 1,340 acres across 9 districts. Commercial zoning covers 4.1% of zoned land, residential 71.7% and industrial 17.1%. The largest single district is Single And Two Family Residential at 54.2%. For commercial buyers the practical constraint is that only 21.2% of land carries a commercial or industrial designation.
Single And Two Family Residential (R-B)
This zoning district encompasses some of the older localities of the city. The residential character is mainly urban, single-family homes of earlier construction on individual lots. Two-family homes and new duplexes are permitted here, but with controls as to location, site and density.
Market overview
Demographics & Economy
Otsego, MI has 9,483 residents in 4,315 households. Density runs 191 people per square mile. Median household income here is $77,517 and median gross rent $1,106 a month.
9,483
Population
4,315
Households
2.2
Avg Household Size
41
Median Age
19%
College-Educated
92%
High-School Grad
49.5 sq mi
ZIP Area
191
Density / Sq Mi
$77,517
Median Household Income
$44,956
Median Earnings
$1,106
Median Rent
$189,600
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Plainwell | — | — |
| Martin | — | — |
| Kendall | — | — |
| Allegan | — | $12.50 |
Commercial property in Otsego, MI asks $91/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Otsego?
Commercial property in Otsego, MI asks an average of $91 per square foot. The 3 most recent recorded sales traded at a median of $77/SF, so asking sits 18% above the achieved median. Office carries the highest asking price at $97/SF.
How much does it cost to lease commercial space in Otsego?
Asking lease rates in Otsego, MI average $13.80 per square foot per year.
What zoning applies to commercial property in Otsego?
Otsego, MI zones 1,340 acres across 9 districts, of which 4.1% is commercial and 17.1% industrial. The largest single district is Single And Two Family Residential at 54.2% of zoned land. This zoning district encompasses some of the older localities of the city. The residential character is mainly urban, single-family homes of earlier construction on individual lots. Two-family homes and new duplexes are permitted here, but with controls as to location, site and density. Residential zoning covers 71.7% and open space 0%.
Where does Realmo's Otsego market data come from?
Realmo compiles Otsego, MI figures from 3 recent recorded sales, 29 active sale listings, 6 active lease listings, 342 tracked off-market properties, the current Otsego zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 29 active for-sale and 6 active for-lease listings in Otsego, MI. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 1,340 zoned acres across 9 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at Midwest region level, retail vacancy is reported at Midwest region level and industrial vacancy is reported at Midwest region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
