Mancelona, MI Commercial Real Estate for Sale and Lease

Mancelona, MI is a charming Northern Michigan community known for its scenic beauty, small-town hospitality, and strategic location along major travel routes. Positioned at the crossroads of U.S. 131 and M-88, the village offers easy access to nearby economic hubs like Traverse City, Gaylord, and Petoskey. Mancelona serves as both a residential haven and a growing business destination, making it an ideal location for commercial real estate investors and entrepreneurs seeking visibility, affordability, and opportunity.

The commercial real estate market in Mancelona includes a mix of historic downtown storefronts, adaptable office spaces, and expansive industrial sites. With community-backed development initiatives and a strong focus on revitalization, Mancelona encourages both new and expanding businesses to take root. From retail shops and service providers to warehouse operations and mixed-use developments, the town provides versatile real estate options that appeal to a wide range of business models.

Real Estate Statistics

Average Price	$569K
Lowest Price	$299K
Highest Price	$925K
Total Listings	5
Avg. Days On Market	264
Avg. Price/SQFT	$195

Property Types (active listings)

Browse Mancelona, MI Commercial Real Estate for Sale and Lease

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$925,000

$359,000

11380 Ne Starvation Lake Road, Mancelona

0 Beds 0 Baths 1,380 SqFt Commercial MLS® # 201837288

$299,000

↓ $86,000

1680 Ne Plum Valley Road, Mancelona

0 Beds 0 Baths 6,400 SqFt Commercial MLS® # 1921251

Mancelona, MI Commercial Real Estate for Sale and Lease Opportunities

Introduction to Mancelona’s Commercial Market

Tucked into the heart of Northern Michigan, Mancelona offers a small-town atmosphere with big commercial potential. With its strategic location near major highways, access to natural attractions, and a growing year-round population, this community is increasingly attractive to entrepreneurs, investors, and businesses seeking opportunity at an affordable price point.

Mancelona’s commercial real estate market is characterized by diversity. From historic storefronts on bustling main streets to sprawling warehouse lots ready for redevelopment, the area offers a variety of properties for sale and lease. For those looking to get in on the ground floor of a revitalizing town, Mancelona is ripe with possibilities.

Why Invest in Mancelona, MI?

Strategic Location and Accessibility

Located at the intersection of U.S. Route 131 and M-88, Mancelona provides direct access to Traverse City, Gaylord, and Petoskey—making it a regional hub despite its small-town size. The area's location offers both logistical convenience and charm, ideal for distribution centers, specialty shops, and service providers alike.

Business-Friendly Environment

The local government of Mancelona actively supports economic development through tax incentives, zoning flexibility, and small business grants. The village participates in various regional initiatives to attract new investment and foster entrepreneurship. For example, the Mancelona Downtown Development Authority works to enhance infrastructure and promote business growth in key corridors.

Overview of Commercial Property Types

Retail Spaces

Mancelona’s retail spaces are typically found along State Street and in revitalized downtown zones. These buildings range from boutique-sized storefronts to larger retail centers with off-street parking, ideal for restaurants, hardware stores, or service-based businesses.

Office Buildings

Office inventory includes single-story professional buildings and second-story suites above street-level retail. These spaces are perfect for law firms, real estate offices, healthcare providers, and remote-working professionals seeking affordable headquarters.

Industrial and Warehouse Facilities

With open land and access to highways, Mancelona is prime for industrial development. Warehouses, light manufacturing buildings, and truck-accessible lots are often available at a fraction of the cost of larger metro areas, offering room for operational expansion.

Mixed-Use Developments

Mixed-use buildings, often located in central Mancelona, offer combined commercial and residential opportunities. These are especially attractive to live/work entrepreneurs, Airbnb hosts, or those seeking income-generating real estate.

Market Trends and Investment Insights

Historical Price Performance

Commercial property values in Mancelona have experienced modest but steady appreciation over the past decade. The town avoided the speculative highs of larger cities, making it more resilient during economic downturns.

2025 Forecast and Market Indicators

With Northern Michigan continuing to draw tourists and remote workers, the forecast for Mancelona’s commercial real estate market in 2025 looks bright. Vacancy rates are falling, lease rates are climbing, and more outside investors are taking interest.

Demand by Sector

Retail and hospitality are top-performing sectors, driven by seasonal tourism and local events. Industrial demand is also growing as businesses seek affordable alternatives to Traverse City or Grand Rapids.

Available Properties in Mancelona

Featured Listings

Downtown Retail Storefront (2,000 sq ft) – Updated interior, large display windows, and excellent foot traffic.
Warehouse with Office Space (5,000 sq ft) – Heated bays, loading dock, and fenced yard.
Mixed-Use Building – Retail on the first floor, 2 apartments above. Walking distance to town square.

Lease Opportunities

Lease rates range from $8–$14 per square foot, depending on the property type, build-out quality, and location. Flexible lease terms are often available for local businesses and startups.

Zoning and Development Regulations

Commercial Zoning Categories

Mancelona’s zoning ordinances allow for a variety of business uses. Main districts include:

C-1: Central Business District
C-2: General Commercial
I-1: Light Industrial

Permitting Process Overview

Starting a business in Mancelona is relatively straightforward. Building permits, occupancy certificates, and sign approvals are handled locally. The Village Clerk’s office is known for working directly with investors to expedite development.

Financing Commercial Property in Mancelona

Loan Options and Lenders

Buyers can secure financing through local banks such as Alden State Bank or national lenders offering SBA 504 and 7(a) loans. Competitive rates and reasonable down payment requirements make ownership attainable.

SBA and Local Incentives

The Small Business Administration offers financing options to help with down payments, renovations, and equipment. Local grants may also be available for façade improvements and energy-efficiency upgrades.

Key Neighborhoods and Business Districts

Downtown Mancelona

With its classic Americana charm, the downtown area is walkable, scenic, and increasingly active. It's the heartbeat of Mancelona’s commercial core.

Mancelona Industrial Corridor

This area is perfect for logistics, manufacturing, and trades. With larger lots and fewer zoning restrictions, it offers room to grow.

Highway Commercial Zone

Fronting U.S. Route 131, this zone is ideal for gas stations, fast-food chains, and large format retailers looking for high visibility.

Infrastructure and Utilities Overview

Transportation and Roads

Well-maintained highways and year-round road access support freight movement and commuter convenience. The town is less than 40 minutes from Cherry Capital Airport.

Water, Sewer, and Internet

Mancelona offers municipal water and sewer in most commercial zones. High-speed internet and fiber are increasingly available, thanks to regional broadband expansion efforts.

Commercial Lease Structures Explained

Gross vs. Net Leases

In gross leases, tenants pay a flat rate while the landlord covers all operating expenses. This is common in smaller retail and office setups.

Triple Net (NNN) and Modified Gross

Triple Net leases pass along taxes, insurance, and maintenance costs to tenants. These are typically used in higher-value or corporate-leased properties.

Tips for Buyers and Investors

Working with a Local Broker

Having a knowledgeable local agent is crucial. They can identify off-market deals, navigate permitting, and negotiate fair prices. Contact Brook Walsh for personalized support.

ROI Expectations and Cap Rates

Average cap rates range from 7% to 10%, depending on tenant quality and location. Mixed-use and industrial properties often outperform due to lower operating costs and stronger tenant demand.

Challenges and Opportunities in the Market

Seasonality and Foot Traffic

Winter months may see slower retail activity, but this is offset by snowmobiling and ski tourism. Summer traffic is high thanks to festivals and travelers en route to Torch Lake.

Weather-Related Considerations

Northern Michigan winters can be intense. Investors should account for snow removal, insulation needs, and building durability when buying property.

Local Economic Drivers

Tourism and Outdoor Recreation Economy

Tourism is a massive economic driver. Visitors flock to nearby Torch Lake, Shanty Creek, and the Jordan River Valley. This makes hospitality and retail businesses highly viable.

Agriculture, Manufacturing, and Services

Beyond tourism, Mancelona’s economy also benefits from small manufacturing plants, agricultural businesses, and essential services like healthcare and education.

Sustainability and Green Commercial Development

Energy-Efficient Building Options

More businesses are exploring solar panels, high-efficiency HVAC systems, and green roofs. These upgrades can attract eco-conscious tenants and reduce utility costs.

Tax Incentives for Sustainable Investments

Federal tax credits and local grants are available for commercial upgrades like insulation, solar panels, and LED lighting.

Navigating the Commercial Real Estate Transaction

Purchase and Sale Agreement Essentials

Key elements include earnest money, due diligence timelines, financing contingencies, and closing dates. Working with an attorney is highly recommended.

Inspections and Due Diligence

Buyers should inspect HVAC, roofing, electrical, and structural components. Environmental assessments are also important for industrial sites.

Case Studies: Successful Commercial Ventures in Mancelona

Renovation of a Downtown Storefront

A vacant hardware store was renovated into a specialty gift shop and coffee bar. After two years, it expanded into the adjacent building and now serves as a local hotspot.

Transformation of a Warehouse into a Retail Hub

An old lumber yard was converted into a home decor outlet and flea market. It’s now one of Mancelona’s highest-traffic weekend attractions.

FAQs About Mancelona Commercial Real Estate

Q. What types of commercial properties are most in demand in Mancelona?
A. Retail and mixed-use properties in downtown are particularly popular due to foot traffic and tourism.

Q. How much does it cost to lease commercial space in Mancelona?
A. Lease rates vary but generally fall between $8 and $14 per square foot annually.

Q. Is seller financing available for commercial properties?
A. Occasionally, yes. Especially with motivated sellers or for properties needing renovation.

Q. What are cap rates like for commercial properties in this area?
A. Cap rates typically range from 7% to 10%, depending on asset class and tenant stability.

Q. Can out-of-state investors buy commercial real estate in Mancelona?
A. Absolutely. Many seasonal business owners are from out of state and invest in the area.

Q. Are there any grants or incentives for new businesses?
A. Yes, local façade improvement programs and SBA-backed initiatives are available.

Conclusion and Next Steps

Mancelona, MI offers a unique combination of affordability, charm, and economic potential. Whether you're an investor searching for a high-yield property or a business owner dreaming of a storefront in Northern Michigan, Mancelona has the inventory and community to support your goals.

Ready to explore Mancelona commercial real estate? Reach out to BrookWalsh.com for listings, guidance, and personalized market insights.

External Resources and Contact Information

Continue your Northern Michigan commercial real estate search in the communities below or contact Brook Walsh to help you with your search.

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