Discover 7 Unbeatable Commercial Real Estate Opportunities in Tawas City, MI

Tawas City, MI Commercial Real Estate for Sale and Lease

Tawas City’s commercial core centers on East Bay Street, where charming brick-and-mortar storefronts sit steps from Lake Huron’s sparkling waters. Local boutiques, cafés, and professional offices draw steady foot traffic year-round, while the nearby Lakeshore District offers waterfront parcels ideal for hospitality and retail ventures.

With high-speed broadband, easy access to US-23, and supportive zoning for adaptive reuse, Tawas City provides a business-friendly environment. Ongoing streetscape enhancements and waterfront revitalization projects promise increased visibility and property values for savvy commercial investors.

Real Estate Statistics

Average Price	$509K
Lowest Price	$90K
Highest Price	$900K
Total Listings	4
Avg. Days On Market	611
Avg. Price/SQFT	$144

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$900,000

1190 Lake Street, Tawas City

0 Beds 2 Baths 8,160 SqFt Commercial MLS® # 1871231

$685,000

908 & 910 W Lake, Tawas City

0 Beds 0 Baths 2,270 SqFt Commercial MLS® # 1923439

$359,000

1022 Monument Road, Tawas City

0 Beds 2 Baths 3,000 SqFt Commercial MLS® # 1932511

$90,000

↓ $10,000

630 N Plank Road, Tawas City

0 Beds 0 Baths 2,064 SqFt Commercial MLS® # 1934246

Tawas City, MI Commercial Real Estate for Sale and Lease: 7 Unbeatable Opportunities

Overview of Tawas City Commercial Real Estate Market

Tawas City has quietly emerged as a hotspot for commercial real estate investors seeking value and stability. Nestled on the shores of Lake Huron, the city combines small-town charm with growing business momentum—making it an appealing buy-and-hold or redevelopment play. In recent years, vacancy rates have hovered below 8%, and absorption of new retail and office space has been steady. You’ll find that both local entrepreneurs and out-of-state investors are drawn to competitive pricing, strong foot traffic in downtown, and proximity to tourism amenities like Tawas Point Lighthouse.

Overall market fundamentals remain solid. Vacancy across all property types is below the statewide average, while average rents have increased by 4% year-over-year. The local Chamber of Commerce reports over 40 new business licenses issued in the past 12 months, demonstrating enviable growth for a city of under 4,000 residents. Plus, with several infrastructure upgrades underway—such as improved waterfront parks and expanded broadband—Tawas City is primed for the next wave of commercial development.

Economic Landscape

The city’s economy is fueled by a mix of tourism, light manufacturing, and service industries. Seasonal visitor spending contributes roughly $75 million annually, while small-scale manufacturers in the Industrial Park supply goods statewide. Employment growth has averaged 2.2% per year, outpacing the national average. This diverse economic base cushions investors against sector-specific downturns.

Demographic Trends

With a median age of 47 and household income near $52,000, Tawas City’s residents value convenience and community. The region has seen a modest influx of young families and retirees alike, attracted by affordable housing and recreational amenities. Such demographic shifts bode well for mixed-use developments combining retail, office, and residential components.

Key Neighborhoods for Commercial Investment

Choosing the right location is half the battle. In Tawas City, three zones stand out:

Downtown Tawas City

The historic downtown district features brick-and-mortar storefronts along East Bay Street. Anchored by local boutiques, cafes, and art galleries, foot traffic peaks from Memorial Day through Labor Day. Corner lots here often command premiums but deliver reliable rental income to owner-operators.

Lakeshore District

Stretching along State Street toward Tawas Bay, the Lakeshore District blends hospitality with retail. Hotels, seafood restaurants, and gift shops thrive on summer tourism. Properties here are ideal for investors targeting seasonal leases or short-term rentals.

Industrial Parks

For warehouse and light-manufacturing uses, the Industrial Park off US-23 offers fenced lots, easy highway access, and affordable land prices—typically $4–$6 per square foot. Tenants include packaging firms, small-batch producers, and logistics companies, ensuring consistent occupancy.

Types of Commercial Properties Available

Tawas City’s diverse property mix lets investors tailor their strategy:

Retail Spaces

From 1,000-square-foot shop fronts downtown to 3,500-square-foot endcaps near the mall, retail offerings are plentiful. Lease rates average $12–$16 per square foot NNN.

Office Buildings

Two-story office buildings with shared parking and conference rooms appeal to local professionals—lawyers, accountants, and design firms. Class B office space can be acquired for $8–$10 per square foot.

Industrial Warehouses

Typical sizes range from 5,000 to 20,000 square feet, with ceiling heights of 16–20 feet. Drive-in doors and loading docks are standard. Pricing runs $5–$7 per square foot.

Mixed-Use Developments

Combining ground-floor retail with upper-floor apartments, mixed-use properties command higher rents. Recent renovations have attracted boutique fitness studios and co-working operators.

Pricing Trends and Investment Analysis

Current Price per Square Foot

• Retail: $12–$16 NNN

• Office: $8–$10 full-service

• Industrial: $5–$7 triple-net

Comparison with Neighboring Markets

Compared to Alpena and Gaylord, Tawas City’s pricing is 10–15% lower while offering comparable amenities. That spread presents upside if rents converge regionally.

Financing Commercial Real Estate in Tawas City

Local Banks and Lenders

First National Bank of Tawas and Lake Huron Community Bank offer competitive fixed rates starting near 5.25% for owner-occupied purchases.

SBA Loans and Government Programs

The SBA 7(a) program covers up to 90% of acquisition costs, while the SBA 504 program can finance owner-occupied properties with long-term, low-down-payment loans. Michigan Economic Development Corporation also provides gap financing for redevelopment in designated zones.

Private Financing Options

Hard-money lenders and private equity firms often structure bridge loans at 8–10% interest for value-add projects. That’s useful if you need fast closings or intend to reposition a property.

Legal Considerations and Zoning Regulations

Before you ink a deal, review the City of Tawas City Zoning Ordinance. Downtown is primarily C-1 (Central Business), permitting retail and office by right, while Lakeshore uses C-2 (Tourist Commercial), which allows hospitality and entertainment venues. Industrial Park parcels are governed by I-1 (Light Industrial) zoning. Be sure to check setback requirements, parking minimums, and sign regulations at www.tawascity.org.

Future Development Plans and Growth Projections

Tawas City recently approved a waterfront of-the-bay redevelopment plan that includes pedestrian promenades, mixed-use pavilions, and a seasonal farmers’ market. Completion is slated for late 2026, and appraisals suggest adjacent commercial parcels could appreciate by 12–15% post-buildout. Additionally, the upcoming expansion of county broadband will enhance property appeal to tech-focused tenants.

Frequently Asked Questions

1. What’s the typical cap rate for commercial properties in Tawas City?
A. Cap rates average 7–8% for stabilized retail, 6–7% for office, and 8–9% for industrial assets.

2. Are there incentives for historic building renovations?
A. Yes—Michigan’s Historic Preservation Tax Credit can cover 25% of qualified rehabilitation expenses for buildings listed in or contributing to a historic district.

3. How seasonal is demand for retail space?
A. Summer drives most of the foot traffic, but downtown retailers report consistent winter revenues from local shoppers and events.

4. Can non-residents finance properties in Tawas City?
A. Absolutely. Out-of-state and foreign investors regularly secure financing through local banks and SBA programs.

5. What due diligence should I perform?
A. Conduct phase I environmental assessments, verify zoning compliance, review leases, and confirm utility capacities.

6. How long does a typical transaction take?
A. From LOI to closing, expect 60–90 days, depending on financing and due-diligence turnaround.

Conclusion and Next Steps

Tawas City represents a rare blend of affordability, growth potential, and lifestyle appeal. Whether you’re eyeing a retail strip downtown or a value-add industrial warehouse, you’ll find seven unbeatable opportunities ready for savvy investors. To dive deeper, connect with the Tawas City Chamber of Commerce, consult with local lenders, and tour active listings today. For more details on zoning, municipal plans, and community events, visit the City of Tawas City’s official site at www.tawascity.org.

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