Suttons Bay, MI Commercial Real Estate for Sale and Lease

Suttons Bay’s commercial district blends historic brick storefronts with lakeside charm, offering boutique shops, galleries, and cafés along pedestrian-friendly sidewalks. High summer foot traffic—fueled by nearby vineyards and scenic M-22 drives—creates an ideal market for retail and hospitality ventures, while winter events help sustain year-round engagement.

Local organizations like the Suttons Bay Chamber of Commerce and Leelanau County Economic Development Alliance support entrepreneurs with networking, marketing assistance, and zoning guidance. With a stable year-round population of about 1,000 (rising to over 3,000 in peak season), plus easy access via M-22 and ample parking, Suttons Bay provides a welcoming backdrop for northern Michigan commercial real estate investment.

Suttons Bay, MI Commercial Real Estate for Sale and Lease

Real Estate Statistics

Average Price $3.4M
Lowest Price $430K
Highest Price $5.7M
Total Listings 6
Avg. Days On Market 196
Avg. Price/SQFT $945

Property Types (active listings)


Browse Suttons Bay, MI Commercial Real Estate for Sale and Lease

Suttons Bay, MI Commercial Real Estate for Sale and Lease: 7 Unbeatable Opportunities

Unbeatable Opportunities await discerning investors in 2025, with data-driven market insights, ROI analysis, and top-tier property listings.

Overview of Suttons Bay Commercial Real Estate

Overview of Suttons Bay Commercial Real Estate

Suttons Bay has evolved from a quaint lakeshore village into a dynamic commercial hub nestled on the shores of Lake Michigan. Once known primarily for its cherry orchards and historic downtown, the community now boasts a rich tapestry of retail shops, office suites, and hospitality venues.

Today, discerning investors seek out Suttons Bay, MI Commercial Real Estate for Sale and Lease as they chase both steady cash flow and long-term appreciation. With a population hovering around 1,000 residents year-round—and swelling to over 3,000 during the peak summer months—the local demand for commercial services remains robust.

Historically, Suttons Bay’s commercial corridor grew in tandem with the rise of tourism in Northern Michigan. In the early 2000s, developers began renovating turn-of-the-century storefronts to house boutique galleries and specialty grocers. More recently, mixed-use projects have replaced underperforming parcels, creating live-work spaces that cater to remote professionals and hospitality operators alike. This interplay between preservation and innovation underscores the village’s promise: it respects its heritage while embracing new revenue streams.

The primary economic drivers include tourism—anchored by nearby vineyards and the Leelanau Peninsula wine trail—as well as specialty manufacturing and marine services along the waterfront. Collectively, these sectors create a diversified base that cushions the market during off-season lulls. Local property management firms, such as Northern Michigan Escapes, provide turnkey leasing solutions that appeal to both novice investors and institutional buyers. Their intimate knowledge of zoning bylaws, tenant sourcing, and ROI maximization gives clients a competitive edge in securing the best lease agreements.

Types of Commercial Properties Available

Types of Commercial Properties Available

Retail and Main Street Spaces

Suttons Bay’s historic Main Street features storefronts ranging from 800 to 3,000 square feet. These ground-level units are ideal for boutiques, art galleries, and gourmet eateries. High foot traffic—especially between Memorial Day and Labor Day—ensures tenants capture seasonal surges, while winter events like the Holiday Stroll help maintain year-round visibility.

Office Buildings and Coworking

Modern office suites in newly constructed buildings offer flexible floor plans, high-speed internet, and access to shared conference rooms. Coworking spaces—popular among digital nomads—often bundle utilities, reception services, and community events under one lease, driving consistent occupancy rates.

Industrial and Light Manufacturing

Light manufacturing facilities and flex-space warehouses, typically 5,000–15,000 square feet, serve small-batch producers, marine outfitting businesses, and craft beverage operations. These properties usually include drive-in bays, bulk storage, and easy highway access via M-22, making logistics simple for tenants.

Mixed-Use and Hospitality Properties

Boutique hotels, bed-and-breakfasts, and short-term rental properties leverage Suttons Bay’s lakeside allure. Many mixed-use developments combine street-level retail with upper-floor lodging or residential units, maximizing gross leasable area (GLA). Investors can tap into both nightly rates and multi-year commercial leases for diversified income streams.

Market Trends and Investment Opportunities

Market Trends and Investment Opportunities

The Suttons Bay commercial sector has seen average sales price growth of 5–7% annually over the past five years. Lease rates for retail space now hover between $18 and $24 per square foot (NNN), while office space commands $14–$20 per square foot. Industrial units typically lease for $8–$12 per square foot, depending on location and build-out. These figures reflect healthy demand driven by tourists, remote workers, and specialty producers.

A key component of any acquisition strategy is rigorous ROI analysis. Cap rates for stabilized retail properties range from 6.0% to 6.5%, while office and industrial assets hover around 6.5% to 7.0%. Mixed-use and hospitality properties can yield higher cap rates—sometimes exceeding 8%—but entail greater operational complexity. Prospective buyers should model lease escalations, vacancy assumptions, and management fees to gauge true net operating income (NOI).

Lease agreements in this market often include built-in escalations of 2–3% per annum and require tenants to cover property management, insurance, and CAM charges (triple net lease). Accurate property valuation also hinges on comparable sales, replacement cost analyses, and tenant creditworthiness. Due diligence should incorporate environmental site assessments—particularly for older industrial parcels—and verify zoning compliance with the Leelanau County Planning Commission.

Lease and Sale Process: Best Practices

Site Selection and Due Diligence

Begin with demographic analysis: traffic counts, population density, and consumer spending patterns. Engage a local broker—ideally one affiliated with BrookWalsh.com—to identify off-market listings and leverage insider knowledge. Order an ALTA survey and Phase I environmental study early, saving potential deal-breaking surprises.

Negotiation Strategies for Buyers and Tenants

Negotiate tenant improvement (TI) allowances, rent-free periods, and renewal options. Use market comparables to justify concessions. Landlords may offer graduated rent increases or revenue-share clauses for new concepts, while tenants can request caps on operating expense pass-throughs.

Legal, Zoning, and Permitting Considerations

Work with an attorney experienced in Michigan real estate law. Review zoning district maps for allowable uses—especially in the waterfront overlay district, which governs shoreline setbacks and façade materials. Obtain building permits and certificates of occupancy from the Village of Suttons Bay Building Department prior to tenant move-in.

Financing Options and Government Incentives

Financing Options and Government Incentives

Local Lending Institutions and SBA Loans

Regional banks like Chemical Bank and Level One Bank provide conventional loans with 20–30% down payment requirements. The Small Business Administration (SBA) 7(a) and CDC/504 programs allow for up to 90% financing on owner-occupied properties, reducing upfront capital needs.

State and Federal Tax Credits & Grants

Michigan’s Pure Michigan Business Connect (PMBC) and the MEDC Community Development Block Grant (CDBG) program offer matching grants for façade improvements, infrastructure upgrades, and job creation. On the federal side, historic rehabilitation tax credits can cover up to 20% of qualified renovation expenses for certified historic buildings.

External Resources for Investors

Frequently Asked Questions

Frequently Asked Questions

1. What is the average cap rate for retail properties in Suttons Bay?
A. Cap rates typically range from 6.0% to 6.5% for stabilized retail assets, though niche storefronts and high-foot-traffic corners may yield slightly lower cap rates due to premium valuations.

2. Are triple-net (NNN) leases common here?
A. Yes, most single-tenant retail and industrial leases are structured as triple-net, passing property taxes, insurance, and CAM fees onto tenants.

3. How seasonal is the Suttons Bay commercial market?
A. While peak tourism runs May through September, events like fall harvest festivals and winter holiday markets help sustain foot traffic year-round.

4. Can out-of-state investors obtain financing locally?
A. Absolutely—regional banks and credit unions routinely finance investors regardless of residency, though they may require additional collateral or a local guarantor.

5. What zoning district covers Main Street Suttons Bay?
A. Main Street businesses fall under the B-1 (Central Business District) zoning, which permits retail, office, and mixed-use developments.

6. Are there incentives for renovating historic buildings?
A. Yes—both Michigan and federal historic tax credits apply, potentially covering up to 20% of qualified rehabilitation expenses when projects meet the Secretary of the Interior’s Standards.

Conclusion

With its blend of lakeshore charm and growing commercial vitality in northern Michigan, Suttons Bay stands out as a premier market for investors seeking reliable income and long-term growth. By focusing on the Unbeatable 7 Opportunities outlined above—ranging from retail storefronts to mixed-use developments—buyers and tenants can navigate lease agreements, secure favorable financing, and capitalize on government incentives.

Whether you’re a first-time investor or a seasoned landlord, Suttons Bay’s dynamic economy, expert property management resources, and strategic location on the Leelanau Peninsula make it an unbeatable choice for commercial real estate ventures.

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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