Building Details

Year built 1948

Floors in Building 2

Listing Agency: U Bar S Real Estate j**@ubars.net Show Phone

Listed By: Carlos Davey · License #14186 Show Phone

Added: Jul 13 Changed: Aug 19 Last Checked: Sep 10 at 4:06AM

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MLS# 360612

Copyright © 2026 Billings Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This commercial property comprises two buildings totaling approximately 12,750 square feet. The primary building at 1105 1st Avenue North was constructed in 1948 and includes approximately 11,770 square feet of dock-high space, with retail and warehouse components. Approximately 4,400 square feet on the retail side is occupied by the owner, who may lease back the space or vacate. A separate 908-square-foot Quonset building at 1111 1st Avenue North is leased to a bicycle shop.

The property fronts 1st Avenue North in Billings, with more than 15,000 vehicles passing daily. MetraPark, area universities, hospitals, Interstate 90, and downtown Billings are identified as nearby destinations. Natural gas and forced-air heating, central air, public water, and public sewer serve the property. The site supports warehouse, distribution, retail, and other commercial applications requiring interstate access.

Key Highlights

• Approximately 11,770 square feet of dock‑high space at 1105 1st Avenue North
• Primary building includes approximately 2,900 square feet of retail area and 8,726 square feet of warehouse space
• Separate 908‑square‑foot Quonset building at 1111 1st Avenue North

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$99,549

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

8.30%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,990,980 $2.0M

Cap Rate 7%

$1,422,129 $1.4M

Cap Rate 9%

$1,106,100 $1.1M

Market Conditions

NOI Build-Up for 12,750 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$168.3K $13.20/SF

− Vacancy

−$15.1K −$1.19/SF

EGI

$153.2K $12.01/SF

− OpEx

−$53.6K −$4.20/SF

NOI

$99.5K $7.81/SF

Area

Billings, MT

Vacancy

9.00%

Lease Rate

$13.20 /SF/Yr

Expense Ratio

35.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,990,980

Cap Rate 7%

$1,422,129

Cap Rate 9%

$1,106,100

Alternative Uses

Best Use

Retail

$1.86M

$1.63M – $2.18M (±1% cap)

NOI $130,528 @ 7.0% cap · market cap 10.88%

Second Best

Flex RnD

$1.42M

$1.24M – $1.66M (±1% cap)

NOI $99,549 @ 7.0% cap · market cap 8.30%

Theoretical Best

Office A

$2.78M

$2.43M – $3.25M (±1% cap)

NOI $194,738 @ 7.0% cap · market cap 16.23%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Wilson's Iron Barn ... Gym & Fitness Center Better Body Fitness Gym & Fitness Center

Suggested Use

Top Pick Hair Salon Nail Salon Storage Facility Parking Lot & Garage Skin Care Clinic (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

15,000 VPD

Traffic count

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

431

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 59101, MT

41,522

Population

18,864

Households

2.2

Avg Household Size

37

Median Age

22%

College-Educated

91%

High-School Grad

590.8 sq mi

ZIP Area

70

Density / Sq Mi

$58,165

Median Household Income

$36,258

Median Earnings

$930

Median Rent

$243,000

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this warehouses located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Warehouse - Warehouse and retail improvements with dock-high loading, public utilities, and prominent exposure along 1st Avenue North.

Where is this warehouse located?

The property is located at 1105 1st Avenue N Billings, MT.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: Approximately 11,770 square feet of dock‑high space at 1105 1st Avenue North; Primary building includes approximately 2,900 square feet of retail area and 8,726 square feet of warehouse space; Separate 908‑square‑foot Quonset building at 1111 1st Avenue North