Industrial Warehouse with Office
For Sale
$4,500,000
1011 E Second Street E 2nd Street, Butte, MT 59701
CommercialSale, Butte, MT
Property Size27,940 SF
Lot Size1.81 Acres
Price / SF$161.06
Days on Market10
Property Features for 1011 E Second Street E 2nd Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
I
Directions
Head north onto Arizona street off of Front Street turn right onto Second Street the building will be on your left.
Subdivision
10BNE - Butte - N of Front, E of Montana
Standard status
Active
APN
0000304710
Size
27,940 SF
Lot size
1.81 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
S18, T03 N, R07 W, 420A, 781A, PARCEL 00B, TRACT B
Tax Annual Amount
32265
Legal Description
S18, T03 N, R07 W, 420A, 781A, PARCEL 00B, TRACT B
Utilities
Sewer type
Public Sewer
Heating system
Baseboard
Cooling system
Window Unit(s)
Water source
Public
Building Details
Year built
1990
Listing Agency:
Century 21 Shea Realty · Century 21 Real Estate
(406) 723-5455
Listed By:
Jennifer Shea · License #BRO-13804
(406) 560-5366
Added: Aug 17
Changed: Aug 19
Last Checked: Aug 26 at 5:06PM
MLS# 414124
Copyright © 2026 Big Sky Country 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.
Constructed in 1990, this industrial warehouse combines 22,940 square feet of warehouse area with approximately 5,000 square feet of office space. The cement-block building has a metal roof and steel truss system, with approximately 20-foot ceilings, a cooler, and extensive storage capacity. Warehouse access includes two semi loading docks, three industrial overhead doors, and a bay door with a drive-in ramp.
The two-story office component includes a reception area, five main-floor offices, executive offices upstairs, a conference room, a walk-in safe, and three restrooms, including two with showers. Heating includes hot water service in the offices and heat in the warehouse, while cooling is provided in the warehouse and by window units. The property also offers parking for 27 vehicles, additional yard parking, three-phase electric, public water, and public sewer on a 1.806-acre site at 1011 E Second Street in Butte, Montana.
The two-story office component includes a reception area, five main-floor offices, executive offices upstairs, a conference room, a walk-in safe, and three restrooms, including two with showers. Heating includes hot water service in the offices and heat in the warehouse, while cooling is provided in the warehouse and by window units. The property also offers parking for 27 vehicles, additional yard parking, three-phase electric, public water, and public sewer on a 1.806-acre site at 1011 E Second Street in Butte, Montana.
Key Highlights
- 22,940‑square‑foot warehouse plus approximately 5,000 square feet of office space
- Two semi loading docks, three industrial overhead doors, and one drive‑in bay door
- Approximately 20‑foot warehouse ceilings with cooler and storage areas
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
$360,727
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
8.02%
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%
$7,214,540
$7.2M
Cap Rate 7%
$5,153,243
$5.2M
Cap Rate 9%
$4,008,078
$4.0M
Market Conditions
NOI Build-Up for 27,940 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
$559.9K $20.04/SF
− Vacancy
−$78.9K −$2.83/SF
EGI
$481.0K $17.21/SF
− OpEx
−$120.2K −$4.30/SF
NOI
$360.7K $12.91/SF
Area
Silver Bow County, MT
Vacancy
14.10%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
25.00%
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%
$7,214,540
Cap Rate 7%
$5,153,243
Cap Rate 9%
$4,008,078
Alternative Uses
Best Use
Office B
$5.15M
$4.51M – $6.01M
NOI $360,727 @ 7.0% cap · market cap 8.02%
Second Best
Warehouse
$2.94M
$2.57M – $3.43M
NOI $205,841 @ 7.0% cap · market cap 4.57%
Theoretical Best
Office A
$6.09M
$5.33M – $7.10M
NOI $426,248 @ 7.0% cap · market cap 9.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 59701, MT
33,937
Population
16,834
Households
2
Avg Household Size
42
Median Age
27%
College-Educated
94%
High-School Grad
509.7 sq mi
ZIP Area
67
Density / Sq Mi
$56,799
Median Household Income
$34,793
Median Earnings
$811
Median Rent
$219,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Masonry warehouse with dock access, overhead doors, office suites, and substantial on-site storage capacity.
Where is this warehouse located?
The property is located at 1011 E Second Street E 2nd Street Butte, MT.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: 22,940‑square‑foot warehouse plus approximately 5,000 square feet of office space; Two semi loading docks, three industrial overhead doors, and one drive‑in bay door; Approximately 20‑foot warehouse ceilings with cooler and storage areas
