Frankfort, MI Commercial Real Estate for Sale and Lease: Top 10 Lucrative Opportunities
Overview of the Frankfort Commercial Market
Geographic & Economic Context
Frankfort, located on the shores of Lake Michigan in Benzie County, combines small-town charm with growing tourism appeal. Its historic downtown, waterfront parks, and proximity to Sleeping Bear Dunes National Lakeshore draw year-round visitors—fueling demand for retail, hospitality, and professional services.
Recent Market Performance
Over the past five years, vacancy rates for prime retail corridors have hovered around 6–7%, while office properties see a steadier 8–9% vacancy. Lease rates have climbed an average of 3% annually, reflecting Frankfort’s growing draw as both a visitor destination and second-home community. On the investment side, cap rates typically range from 5.5% for long-term NNN retail deals to 7.0% for specialty industrial assets.
Key Property Types in Frankfort
Frankfort’s commercial landscape is broadly divided into four categories—each with its own demand drivers and risk/return profile.
Retail & Hospitality Venues
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Downtown Boutiques & Cafés: High foot traffic during summer months; seasonal leases common.
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Bed-and-Breakfast Conversions: Historic homes near the pier repurposed as lodging.
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Marina-Adjacent Shops: Boater services, bait & tackle shops, and lakeside eateries.
Office & Professional Spaces
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Medical & Dental Suites: Stable, long-term tenants near the local clinic.
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Legal & Financial Offices: Located on Main Street, commanding premium lease rates.
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Co-Working Hubs: Emerging to serve remote professionals and entrepreneurs.
Industrial & Warehouse Facilities
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Light Manufacturing Units: Ideal for craft producers, small-batch food processors.
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Storage & Distribution: Access to US-31 supports regional logistics.
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Maker Spaces: Community workshops for artisans and start-ups.
Mixed-Use Developments
Ground-floor retail with upper-level apartments or offices delivers diversified income and strong community appeal. Recent converts include brick-and-beam buildings on Beulah Avenue.
Spotlight on the Top 10 Listings
Below are Frankfort’s most compelling commercial offerings—selected for their location, condition, and upside potential.
| # | Property | Size | Highlights |
|---|---|---|---|
| 1 | Main Street Retail Strip | 3,200 sq ft | Corner lot, historic façade, outdoor seating area |
| 2 | Lakeshore Office Building | 7,500 sq ft | Lake views, on-site parking, modern lobby |
| 3 | Light-Industrial Park Unit | 10,000 sq ft | 18' clear height, drive-in door, yard space |
| 4 | Downtown Mixed-Use Block | 4,000 sq ft retail + 3 apartments | Proven rental history, turnkey condition |
| 5 | Waterfront Hospitality Site | 2,800 sq ft | B&B potential, patio overlooking channel |
| 6 | Highway Commercial Plaza | 5,500 sq ft | NNN leases to national tenants |
| 7 | Boutique Office Suites | 4,200 sq ft | Professional fit-outs, central business district |
| 8 | Logistics & Distribution Hub | 15,000 sq ft | Ideal for e-commerce fulfillment |
| 9 | Historic Grain Mill Redevelopment | 12,000 sq ft | Historic tax credits, mixed-use potential |
| 10 | Sustainable Light-Industrial Facility | 8,000 sq ft | Solar-ready roof, energy-efficient design |
Financing & Incentive Strategies
Conventional vs. Creative Financing
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Bank Loans: 20–25% down, fixed rates, best for stabilized assets.
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SBA 504/7(a): 10% down for owner-occupied segments; attractive terms.
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Seller Financing & Joint Ventures: Flexibility for redevelopment projects.
State & Local Incentives
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Michigan Business Development Program: Grants/loans for job creation.
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Historic Preservation Tax Credits: Up to 25% credit on qualified rehab costs.
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Local Façade Improvement Grants: Reduced permit fees and matching funds downtown.
Partnering with Local Experts
Work with brokers at BrookWalsh.com for off-market leads, tailored market insights, and streamlined deal execution. Local lenders and economic-development agencies can also unlock incentives and expedite approvals.
Frequently Asked Questions
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What’s the average lease rate in Frankfort?
A. Retail leases average $14–16 PSF NNN, while office space runs $12–14 PSF full-service. -
Are short-term leases common?
A. Yes—many retailers and restaurants opt for seasonal (6–9 month) terms with renewal options. -
How do I finance a mixed-use renovation?
A. SBA 504 loans cover owner-occupied portions; conventional or seller financing often completes the package. -
Can I access historic tax credits?
A. Properties on the National Register of Historic Places may qualify for federal and state rehab credits. -
Is Frankfort a year-round market?
A. Tourism peaks in summer, but healthcare, professional services, and industrial tenants provide stability off-season. -
How do I find off-market deals?
A. Networking through the Benzie Chamber of Commerce and working with local brokers at BrookWalsh.com are key.
Conclusion & Next Steps
Frankfort, MI offers a vibrant, multifaceted commercial market—from lakeside retail to light industrial hubs and mixed-use gems. By understanding local dynamics, leveraging incentives, and partnering with on-the-ground experts, you can capitalize on the top 10 opportunities outlined above. Ready to dive in? Visit BrookWalsh.com to explore current listings, arrange tours, and discuss financing strategies tailored to your investment goals.
