Flex Property with Development
For Sale
$3,400,000
4685 Expressway, Missoula, MT 59808
Missoula, MT
Property Size23,520 SF
Lot Size5.19 Acres
Price / SF$144.56
Days on Market33
Property Features for 4685 Expressway
General Information
Property type
Commercial Sale
Property subtype
Other
Standard status
Active
Lot size
5.19 Acres
Amenities
railroad spur
Building Details
Year built
1994
Listing Agency:
Engel & Volkers Missoula · Engel & Völkers
(406) 926-3322
Listed By:
Sharon Gordon · License #RRE-RBS-LIC-13041
(406) 239-1614
Added: Aug 21
Last Checked: Sep 22 at 2:06PM
MLS# 30072297
Copyright © 2026 Engel & Völkers. 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 flex-space property combines operating industrial and office improvements with additional land for future construction. The site contains 5.19 acres, including 2.54 acres under lease, an approximately 21,590-square-foot industrial building used for light industrial operations, and an approximately 1,930-square-foot office building. The remaining 2.65 acres are undeveloped. The property was built in 1994 and carries U-MU1 zoning.
A Burlington Railroad spur is located on and runs through the property, while an internal road crosses the site and provides access to the vacant acreage. The existing lease is structured as NNN and runs through April 2029, with extension capability and 3% annual increases. The tenant pays 78% of taxes and all building and land insurance. Reported underwriting includes a 7.6 cap rate. Four test pits were excavated to 10 feet in January 2026, and a Phase I report is available.
A Burlington Railroad spur is located on and runs through the property, while an internal road crosses the site and provides access to the vacant acreage. The existing lease is structured as NNN and runs through April 2029, with extension capability and 3% annual increases. The tenant pays 78% of taxes and all building and land insurance. Reported underwriting includes a 7.6 cap rate. Four test pits were excavated to 10 feet in January 2026, and a Phase I report is available.
Key Highlights
- 5.19‑acre site with 2.54 acres leased and 2.65 acres undeveloped
- Approximately 21,590 SF light‑industrial building plus approximately 1,930 SF office building
- U‑MU1 zoning and improvements built in 1994
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
$290,594
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
8.55%
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%
$5,811,880
$5.8M
Cap Rate 7%
$4,151,343
$4.2M
Cap Rate 9%
$3,228,822
$3.2M
Market Conditions
NOI Build-Up for 23,520 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
$508.0K $21.60/SF
− Vacancy
−$61.0K −$2.59/SF
EGI
$447.1K $19.01/SF
− OpEx
−$156.5K −$6.65/SF
NOI
$290.6K $12.36/SF
Area
Missoula County, MT
Vacancy
12.00%
Lease Rate
$21.60 /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%
$5,811,880
Cap Rate 7%
$4,151,343
Cap Rate 9%
$3,228,822
Alternative Uses
Best Use
Flex RnD
$4.15M
$3.63M – $4.84M
NOI $290,594 @ 7.0% cap · market cap 8.55%
Second Best
Office B
$3.92M
$3.43M – $4.57M
NOI $274,126 @ 7.0% cap · market cap 8.06%
Theoretical Best
Specialty Retail
$6.78M
$5.93M – $7.91M
NOI $474,692 @ 7.0% cap · market cap 13.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
100%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
115
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 59808, MT
21,546
Population
9,938
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
97%
High-School Grad
157.1 sq mi
ZIP Area
137
Density / Sq Mi
$76,795
Median Household Income
$39,324
Median Earnings
$1,236
Median Rent
$419,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial and office improvements occupy a larger site with additional undeveloped land.
Where is this flex space located?
The property is located at 4685 Expressway Missoula, MT.
What is the asking price?
The asking price for this property is $3,400,000.
What are key features of this property?
This property features: 5.19‑acre site with 2.54 acres leased and 2.65 acres undeveloped; Approximately 21,590 SF light‑industrial building plus approximately 1,930 SF office building; U‑MU1 zoning and improvements built in 1994
