Commercial Real Estate Market in Traverse City, MI
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
630 active listings and 6,235 off-market properties in Traverse City, MI. Commercial property asks $276/SF to buy and $20.63/SF/Yr to lease.
Market Trends
Traverse City, MI spans 223.0 square miles in Grand Traverse County, Michigan. Figures below refresh monthly; last updated 31 August 2026.
Office
Office space in Traverse City, MI asks $36.65/SF/Yr to lease and $236/SF to buy. Vacancy runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Retail
Retail space in Traverse City, MI asks $265/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 Traverse City, 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 Traverse City, MI asks $224/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
Market overview
Demographics & Economy
Traverse City, MI has 78,268 residents in 38,620 households. Density runs 351 people per square mile. Median household income here is $78,543 and median gross rent $1,258 a month.
78,268
Population
38,620
Households
2
Avg Household Size
44
Median Age
43%
College-Educated
96%
High-School Grad
223 sq mi
ZIP Area
351
Density / Sq Mi
$78,543
Median Household Income
$42,378
Median Earnings
$1,258
Median Rent
$320,965
Median Home Value
Tools
Lease vs Buy Breakeven
At $20.63/SF/Yr lease vs $276/SF buy → buying wins if held > 2.7 years.
At a 7.5% 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.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Acme | — | — |
| Grawn | — | — |
| Lake Leelanau | — | — |
| Williamsburg | — | $8.98 |
Commercial property in Traverse City, MI asks $276/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Traverse City?
Commercial property in Traverse City, MI asks an average of $276 per square foot. The 4 most recent recorded sales traded at a median of $259/SF, so asking sits 7% above the achieved median. Retail carries the highest asking price at $265/SF.
How much does it cost to lease commercial space in Traverse City?
Asking lease rates in Traverse City, MI average $20.63 per square foot per year. Office asks $36.65/SF/Yr as of Q1 26, down from $42.16/SF/Yr in Q3 25.
Is it cheaper to lease or buy commercial space in Traverse City?
Buying beats leasing in Traverse City, MI if the property is held longer than 2.7 years, comparing $20.63/SF/Yr asking rent with $276/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
Where does Realmo's Traverse City market data come from?
Realmo compiles Traverse City, MI figures from 5 recent recorded sales, 467 active sale listings, 163 active lease listings, 6,235 tracked off-market properties. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 467 active for-sale and 163 active for-lease listings in Traverse City, 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.
- 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
