Commercial Real Estate Market in Petoskey, MI
Updated monthly: sale, lease, property records, location trend, and more… · Last update: October 31
41 active listings and 1,439 off-market properties in Petoskey, MI. Commercial property asks $203/SF to buy and $16.00/SF/Yr to lease.
Market Trends
Petoskey, MI spans 109.4 square miles in Emmet County, Michigan. Figures below refresh monthly; last updated 31 October 2026.
Office
Office space in Petoskey, MI has a median asking sale price of $198/SF (based on 8 listings). Vacancy runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Retail
Retail space in Petoskey, MI has a median asking sale price of $232/SF (based on 3 listings). Vacancy runs 6.3% across the Midwest region in 2025, down from 8% in 2020.
Industrial
Industrial space in Petoskey, MI has a median asking sale price of $163/SF (based on 5 listings). Vacancy runs 4.9% across the Midwest region in 2025, up from 4.4% in 2019. Nearly 1.6x the 2022 low of 3.1%.
Multifamily
Multifamily space in Petoskey, MI has a median asking sale price of $215/SF (based on 4 listings). Vacancy runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
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
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.
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.
Tools
Lease vs Buy Breakeven
At $16.00/SF/Yr lease vs $203/SF buy → buying wins if held > 2.3 years.
At a 7.9% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Frequently Asked Questions
What is the median price per square foot for commercial property in Petoskey?
How much does it cost to lease commercial space in Petoskey?
Is it cheaper to lease or buy commercial space in Petoskey?
What zoning applies to commercial property in Petoskey?
Where does Realmo's Petoskey market data come from?
Methodology & data sources
- Asking prices and medians
- There are 24 active for-sale and 17 active for-lease listings in Petoskey, MI. The medians are based on 12 of the for-sale and 12 of the for-lease listings, those that state a price or rent per square foot. These are ASKING figures from live listings, not closed-transaction prices, and a figure resting on fewer than 10 listings says so where it is quoted.
- 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 October 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 October 2026 · How Realmo checks market page data · Report a data issue
