Commercial Real Estate Market in Petoskey, MI
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
91 active listings and 1,439 off-market properties in Petoskey, MI. Commercial property asks $226/SF to buy and $13.62/SF/Yr to lease.
Market Trends
Petoskey, MI spans 109.4 square miles in Emmet County, Michigan. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Petoskey, MI runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Vacancy Rate % in Midwest region
Retail
Retail space in Petoskey, MI asks $224/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 Petoskey, 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 vacancy in Petoskey, MI runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Vacancy Rate % in Midwest region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 56.8%
- Commercial 26.4%
- Industrial 10.2%
- Planned_development 3.8%
- Civic 2.1%
- Mixed use 0.7%
Largest Zones share of zoned land by district
Single Family Residential
Single Family Residential
College
Multiple Family Residential
Multiple Family Residential
Petoskey, MI zones 1,885 acres across 20 districts. Commercial zoning covers 26.4% of zoned land, residential 56.8% and industrial 10.2%. The largest single district is Single Family Residential at 26.2%. For commercial buyers the practical constraint is that only 36.6% of land carries a commercial or industrial designation.
Single Family Residential (R-1)
The Single-Family Residential Districts are intended to continue the historic development pattern of primarily single-family detached dwellings, with two-unit dwellings and limited detached accessory dwellings along with other residentially related facilities which serve the residents in the district.
Market overview
Demographics & Economy
Petoskey, MI has 17,643 residents in 10,244 households. Density runs 161 people per square mile. Median household income here is $80,431 and median gross rent $1,077 a month.
17,643
Population
10,244
Households
1.7
Avg Household Size
44
Median Age
47%
College-Educated
97%
High-School Grad
109.4 sq mi
ZIP Area
161
Density / Sq Mi
$80,431
Median Household Income
$42,154
Median Earnings
$1,077
Median Rent
$309,900
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Conway | — | — |
| Walloon Lake | — | — |
| Oden | — | — |
| Alanson | — | — |
Commercial property in Petoskey, MI asks $226/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Petoskey?
Commercial property in Petoskey, MI asks an average of $226 per square foot. Retail carries the highest asking price at $224/SF.
How much does it cost to lease commercial space in Petoskey?
Asking lease rates in Petoskey, MI average $13.62 per square foot per year.
What zoning applies to commercial property in Petoskey?
Petoskey, MI zones 1,885 acres across 20 districts, of which 26.4% is commercial and 10.2% industrial. The largest single district is Single Family Residential at 26.2% of zoned land. The Single-Family Residential Districts are intended to continue the historic development pattern of primarily single-family detached dwellings, with two-unit dwellings and limited detached accessory dwellings along with other residentially related facilities which serve the residents in the district. Residential zoning covers 56.8% and open space 0%.
Where does Realmo's Petoskey market data come from?
Realmo compiles Petoskey, MI figures from 2 recent recorded sales, 81 active sale listings, 10 active lease listings, 1,439 tracked off-market properties, the current Petoskey zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 81 active for-sale and 10 active for-lease listings in Petoskey, 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: 1,885 zoned acres across 20 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
