Flexible Two-Tenant Industrial
For Sale
$725,000
525-515 Michigan Avenue, Missoula, MT 59802
CommercialSale, Missoula, MT
Property Size3,781 SF
Lot Size0.28 Acres
Price / SF$191.75
Days on Market105
Property Features for 525-515 Michigan Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Zoning description
Neighborhood Center - NC
Parking features
RV
Exterior features
Storage
Lot features
Level
Directions
East Missoula, State highway 200 E, turn on Clyde Street, corner of Clyde St and Michigan Ave
Standard status
Active
APN
04220024127150000
Lot size
0.28 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
EAST MISSOULA ADDITION # 18, S24, T13 N, R19 W, Lot 13A
Tax Annual Amount
7236
Legal Description
EAST MISSOULA ADDITION # 18, S24, T13 N, R19 W, Lot 13A
Utilities
Sewer type
Public Sewer
Heating system
Ductless (Heating)
Cooling system
Ductless
Water source
Public
Amenities
gas shop heater
overhead garage door
3 phase power
240V
private office
bathroom with shower
mezzanine storage
heating
cooling
plumbing
half bath
utility sink
fresh paint
aluminum wall finishes
paved parking
divided railroad storage container
Therma-Star by Pella windows
recent roof maintenance
Building Details
Year built
1961
Flooring type
Concrete
Building materials
MetalFrame, MetalSiding, WoodFrame
Roof type
Metal
Additional Structures
Storage
Listing Agency:
Ink Realty Group
(406) 728-8270
Listed By:
Julie McLennan · License #RRE-RBS-LIC-108894
(406) 880-0595
Added: Jun 10
Changed: Sep 10
Last Checked: Sep 22 at 8:06AM
MLS# 30072673
Copyright © 2026 Montana Regional MLS. 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 3,781-square-foot flex property on 0.275 acres is arranged for two separately metered occupants. The larger 2,845-square-foot area has 15-foot ceilings, a gas shop heater, 3 phase power, 240V service, a 10-foot overhead garage door, private office, bathroom, and a 43' x 19' second-floor mezzanine. The 936-square-foot companion space includes heating, cooling, plumbing, 240V service, two 10-foot overhead garage doors, two work areas, and a half bath with utility sink and water heater.
The building has metal roofing, metal and wood-frame construction, concrete flooring, Therma-Star by Pella windows, and recent roof maintenance. Paved parking includes dedicated room for larger vehicles and trailers, while a divided railroad storage container provides access from both ends. The property is located at 525-515 Michigan Avenue, one block from Highway 200 East and minutes from the I-90 corridor and Marshall Mountain Recreation Park. Public water and sewer serve the property.
The building has metal roofing, metal and wood-frame construction, concrete flooring, Therma-Star by Pella windows, and recent roof maintenance. Paved parking includes dedicated room for larger vehicles and trailers, while a divided railroad storage container provides access from both ends. The property is located at 525-515 Michigan Avenue, one block from Highway 200 East and minutes from the I-90 corridor and Marshall Mountain Recreation Park. Public water and sewer serve the property.
Key Highlights
- 3,781‑square‑foot building on 0.275 acres with 15‑foot ceilings
- Two separately metered spaces measuring 2,845 SF and 936 SF
- Larger space includes 3 phase power, 240V, gas shop heater, office, bathroom, and mezzanine
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
$46,715
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
6.44%
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%
$934,300
$934.3K
Cap Rate 7%
$667,357
$667.4K
Cap Rate 9%
$519,056
$519.1K
Market Conditions
NOI Build-Up for 3,781 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
$81.7K $21.60/SF
− Vacancy
−$9.8K −$2.59/SF
EGI
$71.9K $19.01/SF
− OpEx
−$25.2K −$6.65/SF
NOI
$46.7K $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%
$934,300
Cap Rate 7%
$667,357
Cap Rate 9%
$519,056
Alternative Uses
Best Use
Flex RnD
$667.4K
$583.9K – $778.6K
NOI $46,715 @ 7.0% cap · market cap 6.44%
Second Best
Retail
$667.0K
$583.6K – $778.1K
NOI $46,688 @ 7.0% cap · market cap 6.44%
Theoretical Best
Specialty Retail
$1.09M
$953.9K – $1.27M
NOI $76,310 @ 7.0% cap · market cap 10.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
15 ft
Clear height
3
Drive-in doors
Multi-tenant
Tenancy
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
121
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59802, MT
19,892
Population
10,416
Households
1.9
Avg Household Size
37
Median Age
52%
College-Educated
96%
High-School Grad
45.4 sq mi
ZIP Area
438
Density / Sq Mi
$65,054
Median Household Income
$36,541
Median Earnings
$1,021
Median Rent
$420,200
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 Industrial in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Separately metered commercial spaces offer adaptable workspace with overhead doors, power, storage, and paved parking.
Where is this flex space located?
The property is located at 525-515 Michigan Avenue Missoula, MT.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: 3,781‑square‑foot building on 0.275 acres with 15‑foot ceilings; Two separately metered spaces measuring 2,845 SF and 936 SF; Larger space includes 3 phase power, 240V, gas shop heater, office, bathroom, and mezzanine
