Downtown Great Falls Commercial
For Sale
$2,250,000
201 & 207 2nd Avenue S, Great Falls, MT 59405
Commercial building in downtown Great Falls with showroom and warehouse.
Property Size15,000 SF
Price / SF$150
Days on Market876
Property Features for 201 & 207 2nd Avenue S
General Information
Standard status
Active
Size
15,000 SF
Property subtype
Commercial
Zoning
Call Listing Agent for Details
Taxes and HOA fees
Annual Taxes
$14,805
Building Details
Building Size
15,000 SF
Year Built
1914
Listing Agency:
Keller Williams Western MT
(406) 995-2404
Listed By:
Ashley Keller
(406) 407-2520
Source:
Outlaw
Added: Apr 23, 2024
Changed: Sep 14
Last Checked: Sep 15 at 5:46AM
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 Keller Williams Western MT
Investment Insights
Based on property information with market context.
This commercial building, located in downtown Great Falls, Montana, is positioned on the corner of 2nd St. S. and 2nd Ave. South. The building has a total area of just under 15,000 square feet, with approximately 8,000 sq. ft. designated as showroom space. Large windows provide natural light and street visibility. The floorplan includes 5 separate offices, 4 bathrooms, a break/conference room, front counter space, an IT room, a copier/office supply room, and several storage rooms. A heated warehouse with an overhead door and street access is also included, which can serve as private parking. Significant upgrades were completed in 2008, including new plumbing, electrical, roof, HVAC, and windows. Constructed in 1914, the building served as a furniture, appliance, and electronics store from 2008-2022. A segment of the property (207) could be utilized as a separate business with its own entrance, bathroom, office space, kitchenette, and storage. An adjacent warehouse of approximately 26,000 sq. feet is listed for sale separately at 215 2nd Ave. So.
Key Highlights
- High‑traffic downtown location with exceptional visibility on the corner of 2nd St. S. and 2nd Ave. South.
- Large 15,000 sq. ft. commercial building** with an 8,000 sq. ft. showroom featuring large windows and natural light.
- Significant upgrades completed in 2008 including new plumbing, electrical, roof, HVAC, and windows.
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
$164,147
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
7.30%
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%
$3,282,940
$3.3M
Cap Rate 7%
$2,344,957
$2.3M
Cap Rate 9%
$1,823,856
$1.8M
Market Conditions
NOI Build-Up for 15,000 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
$243.0K $16.20/SF
− Vacancy
−$8.5K −$0.57/SF
EGI
$234.5K $15.63/SF
− OpEx
−$70.3K −$4.69/SF
NOI
$164.1K $10.94/SF
Area
Cascade County, MT
Vacancy
3.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
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%
$3,282,940
Cap Rate 7%
$2,344,957
Cap Rate 9%
$1,823,856
Alternative Uses
Best Use
Retail
$2.34M
$2.05M – $2.74M
NOI $164,147 @ 7.0% cap · market cap 7.30%
Second Best
Office B
$1.73M
$1.51M – $2.02M
NOI $121,095 @ 7.0% cap · market cap 5.38%
Theoretical Best
Specialty Retail
$2.92M
$2.55M – $3.41M
NOI $204,341 @ 7.0% cap · market cap 9.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,734
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 59405, MT
33,578
Population
15,260
Households
2.2
Avg Household Size
35
Median Age
29%
College-Educated
94%
High-School Grad
479.4 sq mi
ZIP Area
70
Density / Sq Mi
$60,509
Median Household Income
$37,431
Median Earnings
$947
Median Rent
$236,800
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?
Showroom - Commercial building in downtown Great Falls with showroom and warehouse.
Where is this showroom located?
The property is located at 201 & 207 2nd Avenue S Great Falls, MT.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: High‑traffic downtown location with **exceptional visibility on the corner of 2nd St. S. and 2nd Ave. South**.; Large 15,000 sq. ft. commercial building** with an 8,000 sq. ft. showroom featuring large windows and natural light.; Significant upgrades completed in 2008 including new plumbing, electrical, roof, HVAC, and windows.
