Discover Prime Commercial Real Estate Opportunities in Traverse City, MI

Traverse City, MI Commercial Real Estate

Traverse City’s commercial real estate market thrives where small-town charm meets lakeside scenery. From historic storefronts on Front Street to modern mixed-use developments, the downtown core offers retail, dining, and office spaces with consistently low vacancy. Just south, Garfield Township’s US-31 corridor provides room for big-box retailers, medical offices, and industrial users, while Old Mission Peninsula’s waterfront lots cater to niche tourism and high-end tenants.

Local leaders support growth through streamlined permitting, redevelopment incentives, and planned upgrades to Cherry Capital Airport and downtown streetscapes. Sustainability programs encourage energy-efficient building improvements, helping owners and tenants reduce costs. Whether you need a high-visibility retail spot, a bespoke office build-out, or a warehouse, Traverse City offers a dynamic, community-focused environment for commercial investment.

Real Estate Statistics

Average Price	$450K
Lowest Price	$1
Highest Price	$14.9M
Total Listings	7,388
Avg. Days On Market	157
Avg. Price/SQFT	$257

Property Types (active listings)

Browse Traverse City, MI Commercial Real Estate for Sale and Lease

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• $400,000 - $500,000
• $500,000 - $600,000
• $600,000 - $700,000
• $700,000 - $800,000
• $800,000 - $900,000
• $900,000 - $1,000,000
• Over $1,000,000

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$6,999,900

841 E Front Street, Traverse City

0 Beds 0 Baths 0 SqFt Commercial MLS® # 1930456

$4,700,000

18599 Mission Road, Traverse City

0 Beds 0 Baths 5,644 SqFt Commercial MLS® # 1935651

New

$4,550,000

123 S Union Street, Traverse City

0 Beds 0 Baths 35,889 SqFt Commercial MLS® # 1936620

$4,240,000

230 Wellington, Traverse City

0 Beds 15 Baths 11,807 SqFt Commercial MLS® # 1912528

$3,975,000

121 E Front Street, Traverse City

0 Beds 6 Baths 23,983 SqFt Commercial MLS® # 1929973

New

$3,500,000

6841 Brown Bridge Road, Traverse City

0 Beds 0 Baths 10,404 SqFt Commercial MLS® # 1938665

$3,250,000

522 E Front, Traverse City

0 Beds 0 Baths 6,584 SqFt Commercial MLS® # 1938856

Pending

$2,950,000

144 Hall Street, Traverse City

0 Beds 3 Baths 18,454 SqFt Commercial MLS® # 1937780

$2,950,000

123 S Union Street, Traverse City

0 Beds 0 Baths 20,000 SqFt Commercial MLS® # 1936538

$2,950,000

118 E Front Street, Traverse City

0 Beds 0 Baths 9,045 SqFt Commercial MLS® # 1930524

$2,900,000

3055 Cass Road, Traverse City

0 Beds 0 Baths 31,365 SqFt Commercial MLS® # 1906211

New

$2,650,000

121 Rivers Edge Drive, Traverse City

0 Beds 4 Baths 8,196 SqFt Commercial MLS® # 1934973

$2,650,000

1054-1060 E Front Street, Traverse City

0 Beds 0 Baths 3,726 SqFt Commercial MLS® # 1908374

$2,550,000

2175 Us-31 N, Traverse City

0 Beds 4 Baths 3,270 SqFt Commercial MLS® # 1912472

New

$2,200,000

1200 Ramsdell Road, Traverse City

0 Beds 0 Baths 13,645 SqFt Commercial MLS® # 1936749

New

$2,200,000

2751 N Us-31 S, Traverse City

0 Beds 7 Baths 13,550 SqFt Commercial MLS® # 1933364

$1,985,000

↓ $190,000

274 N Us-31 S, Traverse City

0 Beds 0 Baths 8,250 SqFt Commercial MLS® # 1918655

Pending

$1,950,000

↓ $540,000

1469 Us-31 N, Traverse City

0 Beds 0 Baths 1,900 SqFt Commercial MLS® # 1935274

$1,890,000

601 Randolph Street, Traverse City

0 Beds 0 Baths 3,464 SqFt Commercial MLS® # 1930733

$1,750,000

↓ $250,000

4050 Barnes Road, Traverse City

0 Beds 6 Baths 10,540 SqFt Commercial MLS® # 1930544

$1,750,000

3566 N Us-31 S, Traverse City

0 Beds 0 Baths 13,515 SqFt Commercial MLS® # 1867624

$1,650,000

527 E Eighth Street, Traverse City

0 Beds 0 Baths 5,954 SqFt Commercial MLS® # 1936603

$1,575,000

520 Railroad Avenue, Traverse City

0 Beds 0 Baths 0 SqFt Commercial MLS® # 1925586

$1,499,000

5123 N Royale Drive, Traverse City

0 Beds 4 Baths 11,486 SqFt Commercial MLS® # 1929654

$1,495,000

4240 Copper View, Traverse City

0 Beds 0 Baths 30,000 SqFt Commercial MLS® # 1921431

$1,495,000

4130 Copper View, Traverse City

0 Beds 0 Baths 30,000 SqFt Commercial MLS® # 1921430

Pending

$1,450,000

880 W South Airport Road, Traverse City

0 Beds 0 Baths 11,451 SqFt Commercial MLS® # 1936908

$1,399,000

1776 High Lake Road, Traverse City

0 Beds 2 Baths 3,640 SqFt Commercial MLS® # 1932631

Pending

$1,350,000

5835 Shugart Lane, Traverse City

0 Beds 0 Baths 15,000 SqFt Commercial MLS® # 1938187

New

$1,350,000

2020 W South Airport Road, Traverse City

0 Beds 0 Baths 15,478 SqFt Commercial MLS® # 1935511

$1,350,000

120 Park Street, Traverse City

0 Beds 3 Baths 3,500 SqFt Commercial MLS® # 1929579

New

$1,300,000

530 South Union Street, Traverse City

0 Beds 3 Baths 3,713 SqFt Commercial MLS® # 1939127

Pending

$1,300,000

17015 Center Road, Traverse City

0 Beds 0 Baths 4,400 SqFt Commercial MLS® # 1922170

Pending

$1,275,000

418-420 S Union Street, Traverse City

0 Beds 0 Baths 1,960 SqFt Commercial MLS® # 1922066

$1,250,000

↓ $100,000

5840 Culver Road, Traverse City

0 Beds 10 Baths 5,545 SqFt Commercial MLS® # 1936103

New

$1,200,000

3945 S Blue Star Drive, Traverse City

0 Beds 0 Baths 17,580 SqFt Commercial MLS® # 1937767

Pending

$1,200,000

135 Us-31 S, Traverse City

0 Beds 0 Baths 2,255 SqFt Commercial MLS® # 1930190

Pending

$1,200,000

13380 Sw Bay Shore Drive, Traverse City

0 Beds 0 Baths 0 SqFt Commercial MLS® # 1928893

$1,200,000

3024 W S Airport Road, Traverse City

0 Beds 0 Baths 2,006 SqFt Commercial MLS® # 1844297

$1,198,000

1040 E Front Street, Traverse City

0 Beds 0 Baths 1,864 SqFt Commercial MLS® # 1915323

$1,150,000

Tbd Mitten Drive, Traverse City

0 Beds 0 Baths 0 SqFt Commercial MLS® # 1927541

New

$1,049,000

333 Grandview Parkway, Traverse City

0 Beds 0 Baths 2,185 SqFt Commercial MLS® # 1938991

New

$985,000

1100 E Front Street, Traverse City

0 Beds 0 Baths 448 SqFt Commercial MLS® # 1939191

$985,000

920 S Garfield Avenue, Traverse City

0 Beds 0 Baths 4,995 SqFt Commercial MLS® # 1937489

New

$979,000

5746 Denali Drive, Traverse City

0 Beds 0 Baths 12,000 SqFt Commercial MLS® # 1936098

$949,900

6375 E Traverse Highway, Traverse City

0 Beds 2 Baths 4,608 SqFt Commercial MLS® # 1904494

$949,000

851 S Garfield Avenue, Traverse City

0 Beds 3 Baths 5,133 SqFt Commercial MLS® # 1934208

New

$899,000

410 S Union Street, Traverse City

0 Beds 0 Baths 2,983 SqFt Commercial MLS® # 1935654

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Traverse City, MI Commercial Real Estate for Sale and Lease: Prime 10 Opportunities

Explore 10 prime opportunities in Traverse City, MI. Get expert market insights, ROI analysis, and leasing tips for investors and businesses.

Introduction

Traverse City, Michigan, sits at the crossroads of natural beauty and commercial potential. Over the past decade, this lakeside gem has drawn entrepreneurs, investors, and business owners seeking growth and community appeal.

In this article, we’ll dive into the local commercial real estate market. We’ll cover market trends, property types, and prime neighborhoods. Whether you’re looking to buy or lease, you’ll find actionable insights here. Grab your coffee, and let’s explore the top 10 opportunities in Traverse City’s commercial sector.

Commercial Real Estate Market Overview

Traverse City’s commercial real estate market has grown steadily over the past 10 years. Back in 2014, the city saw moderate expansion driven by tourism and local business development. Today, the demand spans retail, office, and industrial sectors.

Historical Performance and Growth Patterns

From 2014 to 2019, annual average price growth hovered around 4%. Post-2019, growth accelerated. By 2023, prices jumped nearly 7% annually. This uptick ties closely to rising tourism and remote work trends. Notably, office vacancy rates dipped from 12% in 2020 to 8% in late 2024, signaling strong absorption. Moreover, small businesses have fueled retail leasing, keeping vacancy near a historic low of 5%. In a nutshell, Traverse City’s market has shown resilience and steady appreciation.

Current Market Trends and Demand Drivers

Currently, we see several key trends. First, demand for mixed-use developments is growing, blending retail and residential under one roof. Second, tech startups are seeking co-working spaces. Third, e-commerce has driven demand for industrial warehousing. Finally, local zoning updates encourage infill development, making underused lots more attractive. For example, the city’s pending zoning reforms aim to streamline permits for adaptive reuse projects. As a result, investors find shorter timelines and lower holding costs.

Overall, Traverse City’s blend of community vibe and strategic location makes its commercial market dynamic. Whether you seek a standalone retail unit or a large warehouse, the market offers options. Next, let’s explore the types of properties you can invest in.

Property Types and Investment Options

Traverse City offers a variety of commercial property types. Each comes with its own risk profile and income potential. Here’s a closer look.

Retail Spaces and Shopping Centers

Retail remains strong along Front Street and Munson Avenue. Local boutiques share space with national brands. Small shop units average 1,200–2,000 square feet. Annual net lease rates range from $15 to $22 per square foot. Larger strip centers near US-31 draw grocery-anchored traffic. These centers typically span 20,000–50,000 square feet. Cap rates for prime retail hover around 6–7%.

Investing in retail requires understanding foot traffic patterns. For instance, Front Street sees busiest days on weekends. Meanwhile, grocery-anchored centers maintain steady weekday traffic. To maximize returns, consider tenant mix and lease escalation clauses. Retail leases often include common area maintenance (CAM) fees, which can shift costs to tenants.

Office Buildings and Workspaces

Office demand has bounced back as remote work stabilizes. Traverse City’s Class A office buildings average $18–$20 per square foot full service. Class B properties rent at $14–$16. Vacancy across all classes stands near 9%, lower than the state average.

Co-working spaces are a rising niche. Providers offer month-to-month terms, making them ideal for startups. In addition, medical office buildings command premium rents, due to nearby hospitals and clinics. If you’re eyeing office investment, targeting medical or tech-flex spaces can boost yield.

Industrial and Warehouse Properties

Industrial real estate is on the rise. With e-commerce growth, companies need last-mile distribution hubs. Warehouse spaces range from 5,000 to 100,000 square feet. Net lease rates sit between $6 and $8 per square foot triple net. Vacancy is at a tight 4%, indicating strong demand.

Light manufacturing facilities also play a role. Investors can expect steady tenants in food processing, packaging, or small-scale production. When evaluating industrial properties, look at ceiling height, dock accessibility, and land size for future expansion.

Prime Neighborhoods and District Analysis

Location is critical in commercial real estate. Traverse City features several districts that stand out for investors. Let’s examine three of them.

Downtown Traverse City Business District

Downtown is the heart of retail and tourism. It boasts high foot traffic and cultural events year-round. Occupancy rates are at 95%, making vacancies rare. Average lease rates run $18 per square foot. Landmark buildings often come with historic charm, but may need renovation. Investors benefit from premium rents, yet should budget for maintenance.

Garfield Township Commercial Corridor

Garfield Township lies just south of the city. Its corridor along US-31 hosts big-box stores, restaurants, and service businesses. Build-to-suit opportunities exist with plots ranging from 1 to 5 acres. Annual NNN lease rates average $16 per square foot. Because land is more available, investors can develop custom projects.

Old Mission Peninsula and Waterfront Opportunities

While less dense, Old Mission Peninsula offers niche opportunities. Wine-tourism businesses are expanding tasting rooms and event spaces. Waterfront parcels can yield high lease rates, up to $25 per square foot. Development here demands sensitivity to zoning and environmental regulations. However, the premium location attracts high-end tenants.

Financing, ROI, and Legal Essentials

Buying or leasing commercial real estate requires careful financial and legal planning. Here are the key factors to weigh.

Financing Options and Loan Programs

Commercial loans differ from residential. You’ll typically find five to ten-year terms with amortization up to 25 years. Common programs include SBA 7(a) loans and bank term loans. SBA rates start near 5.5%, while conventional loans hover around 6–7%. Down payments usually begin at 20–25%.

Local lenders may offer special programs for job-creating projects. For instance, the Traverse City Redevelopment Fund provides gap financing. State-backed programs can reduce interest for energy-efficient upgrades. Always compare rates and terms across multiple lenders.

Calculating ROI, Cap Rates, and Valuation Metrics

Investors often use cap rates to gauge value. Cap rate equals net operating income divided by purchase price. For example, a property with $100,000 NOI sold at a 6% cap rate would be priced at $1.67M. Higher cap rates often mean higher perceived risk.

Other metrics include cash-on-cash return and internal rate of return (IRR). Cash-on-cash compares initial equity investment to annual cash flow. IRR accounts for time value of money and is useful for multi-year hold periods. To build a robust model, factor in vacancy, operating expenses, and capital expenditures.

Zoning Regulations, Permits, and Tax Incentives

Zoning dictates property use. Traverse City’s zoning ordinance outlines permissible commercial uses per district. Before purchase, verify allowed uses, setbacks, and parking requirements.

Permits cover construction, signage, and occupancy. Engaging a local architect or engineer can streamline approvals. Additionally, the Michigan Economic Development Corporation (MEDC) offers tax incentives for qualifying investments. Brownfield redevelopment credits and local community reinvestment grants can lower costs.

Future Outlook and Marketing Strategies

Looking ahead, Traverse City’s commercial market shows promise. Let’s explore growth drivers and tactics to lease or sell effectively.

Planned Infrastructure and Development Projects

These projects will improve access and aesthetics. As a result, properties near Front Street and the airport will likely command higher rents and values.

Sustainability and Green Building Trends

Sustainability is more than a buzzword. Tenants seek energy-efficient spaces to lower utility bills and carbon footprints. LEED-certified buildings can attract premium rents. Consider solar panel installations, high-efficiency HVAC, and green roof projects. Local incentives may offset up-front costs by up to 20%.

Effective Marketing and Leasing Tactics

To lease or sell swiftly, craft targeted marketing. Use professional photography and virtual tours to highlight property strengths. Optimize listings with keywords like “Traverse City commercial property” and “prime investment location” to boost SEO. Leverage email campaigns to reach local brokers and business associations. Hosting open-house events during city festivals can attract walk-in interest.

Frequently Asked Questions

Q. What types of commercial properties are most in demand in Traverse City?
A. Retail and light industrial spaces lead due to tourism and e-commerce growth. Office demand is also rising for medical and tech-flex uses.

Q. How do I finance a commercial property purchase?
A. Common options include SBA 7(a) loans, conventional bank loans, and local redevelopment funds. Down payments usually start at 20%.

Q. What is a cap rate and how do I calculate it?
A. Cap rate = Net Operating Income ÷ Purchase Price. A lower cap rate often signals lower risk and higher price, while higher cap rates may indicate riskier investments.

Q. Are there tax incentives for commercial developments?
A. Yes. The Michigan Economic Development Corporation offers credits for brownfield redevelopment and energy-efficient projects. Local grants may also be available.

Q. Which neighborhoods offer the best ROI?
A. Downtown Traverse City and Garfield Township typically deliver strong ROI due to high demand and development activity.

Q. Where can I find zoning information for a potential property?
A. Visit the City of Traverse City Economic Development website for zoning maps and ordinances: City of Traverse City – Economic Development.

Conclusion: Seize Your Commercial Real Estate Opportunity

Traverse City’s commercial sector blends small-town charm with growth potential. From retail hubs to industrial warehouses, the market offers diverse investment options. By understanding market history, property types, and financing essentials, you’re well-equipped to make smart decisions. Keep an eye on infrastructure upgrades and sustainability trends to stay ahead. If you’re ready to explore prime opportunities, visit BrookWalsh.com or consult with local experts to start your journey.

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