Office Building with Paved
For Sale
$3,800,000
125 Mendenhall, Bozeman, MT 59715
For sale office building with a paved parking lot and multiple private offices plus reception and a conference room.
Property Size14,000 SF
Price / SF$271.43
Days on Market37
Property Features for 125 Mendenhall
General Information
Standard status
Active
Size
14,000 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$30,115
Building Details
Year Built
1985
Listing Agency:
PureWest Real Estate - Missoula
(406) 207-8200
Listed By:
Devin Khoury · License #RRE-BRO-LIC-14766
Source:
Clearwaterproperties
Added: Jul 17
Changed: Aug 21
Last Checked: Aug 22 at 7:11AM
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 PureWest Real Estate - Missoula
Investment Insights
Based on property information with market context.
This for-sale commercial office building offers approximately 14,000 square feet of flexible interior space. The current configuration includes multiple private offices, a reception area, and a conference room, providing a functional layout for professional and service-oriented uses.
Located at 125 W Mendenhall Street in downtown Bozeman, the property is about one block off Main Street. The site includes a paved parking lot, adding practical convenience for occupants and visitors in the downtown core.
Located at 125 W Mendenhall Street in downtown Bozeman, the property is about one block off Main Street. The site includes a paved parking lot, adding practical convenience for occupants and visitors in the downtown core.
Key Highlights
- 14,000 SF commercial building built in 1985 in downtown Bozeman, one block off Main Street
- Paved parking lot included in the downtown core
- Interior includes multiple private offices plus a reception 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
$205,947
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
5.42%
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%
$4,118,940
$4.1M
Cap Rate 7%
$2,942,100
$2.9M
Cap Rate 9%
$2,288,300
$2.3M
Market Conditions
NOI Build-Up for 14,000 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
$294.0K $21.00/SF
− Vacancy
−$19.4K −$1.39/SF
EGI
$274.6K $19.61/SF
− OpEx
−$68.6K −$4.90/SF
NOI
$205.9K $14.71/SF
Area
Gallatin County, MT
Vacancy
6.60%
Lease Rate
$21.00 /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%
$4,118,940
Cap Rate 7%
$2,942,100
Cap Rate 9%
$2,288,300
Alternative Uses
Best Use
Office B
$2.94M
$2.57M – $3.43M
NOI $205,947 @ 7.0% cap · market cap 5.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.66M
$3.20M – $4.26M
NOI $255,898 @ 7.0% cap · market cap 6.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,349
Businesses Nearby
Explore this area
Business Placement
Demographics for 59715, MT
37,286
Population
17,116
Households
2.2
Avg Household Size
30
Median Age
68%
College-Educated
98%
High-School Grad
294.9 sq mi
ZIP Area
126
Density / Sq Mi
$85,000
Median Household Income
$31,646
Median Earnings
$1,376
Median Rent
$755,300
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?
Office building - For sale office building with a paved parking lot and multiple private offices plus reception and a conference room.
Where is this office building located?
The property is located at 125 Mendenhall Bozeman, MT.
What is the asking price?
The asking price for this property is $3,800,000.
What are key features of this property?
This property features: 14,000 SF commercial building built in 1985 in downtown Bozeman, one block off Main Street; Paved parking lot included in the downtown core; Interior includes multiple private offices plus a reception area
