Two-Building Warehouse
For Sale
$1,200,000
1105 1st Avenue N, Billings, MT 59101
Commercial property combines warehouse, retail, and ancillary building space along 1st Avenue North.
Property Size12,750 SF
Price / SF$94.12
Days on Market36
Property Features for 1105 1st Avenue N
General Information
Standard status
Active
Size
12,750 SF
Property subtype
CommercialSale
Additional Details
Road Access
Yes
Warehouse Space
8,726 SF
Building Details
Buildings
2
Listing Agency:
U Bar S Real Estate
(406) 652-1151
Listed By:
Carlos Davey · License #14186
(406) 652-1151
Source:
Patschindele
Added: Jul 26
Changed: Aug 29
Last Checked: Aug 25 at 9:54AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of U Bar S Real Estate
Investment Insights
Based on property information with market context.
This commercial property consists of two buildings at 1105 and 1111 1st Avenue North. The primary building includes approximately 8,726 square feet of warehouse space and 2,900 square feet of retail area. A separate 908-square-foot Quonset building is currently leased to a bicycle shop.
The property is positioned along 1st Avenue North with more than 15,000 vehicles passing daily. It is near MetraPark, area universities, hospitals, Interstate 90, and downtown Billings. The combination of warehouse and retail areas supports a range of commercial configurations, while the additional Quonset building provides separately occupied space.
The property is positioned along 1st Avenue North with more than 15,000 vehicles passing daily. It is near MetraPark, area universities, hospitals, Interstate 90, and downtown Billings. The combination of warehouse and retail areas supports a range of commercial configurations, while the additional Quonset building provides separately occupied space.
Key Highlights
- Two‑building commercial property at 1105 and 1111 1st Avenue North
- Approximately 8,726 square feet of warehouse space
- Approximately 2,900 square feet of retail area
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
NOI $130,528 @ 7.0% cap · market cap 10.88%
Second Best
Flex RnD
$1.42M
$1.24M – $1.66M
NOI $99,549 @ 7.0% cap · market cap 8.30%
Theoretical Best
Office A
$2.78M
$2.43M – $3.25M
NOI $194,738 @ 7.0% cap · market cap 16.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road 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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Commercial property combines warehouse, retail, and ancillary building space 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: Two‑building commercial property at 1105 and 1111 1st Avenue North; Approximately 8,726 square feet of warehouse space; Approximately 2,900 square feet of retail area
