Office Building with Paved
For Sale
$3,800,000
125 W Mendenhall Street, Bozeman, MT 59715
CommercialSale, Bozeman, MT
Property Size14,000 SF
Lot Size0.38 Acres
Price / SF$271.43
Days on Market254
Property Features for 125 W Mendenhall Street
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
W on Mendenhall
Standard status
Active
APN
06079907216057000
Lot size
0.38 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
BRIDGERVIEW CONDO, S07, T02 S, R06 E, TRACYS 2ND ADD BOZ CONDO MASTER
Tax Annual Amount
30115
Legal Description
BRIDGERVIEW CONDO, S07, T02 S, R06 E, TRACYS 2ND ADD BOZ CONDO MASTER
Building Details
Year built
1985
Listing Agency:
PureWest Real Estate - Missoula
(406) 541-4000
Listed By:
Devin Khoury · License #RRE-BRO-LIC-14766
(406) 207-8200
Added: Dec 10, 2025
Changed: Aug 21
Last Checked: Aug 21 at 1:06PM
MLS# 30062029
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 office building at 125 W Mendenhall Street includes a paved parking lot and an adaptable interior arrangement. The existing configuration provides multiple private offices along with reception and conference areas, supporting professional or service-oriented operations.
Built in 1985, the property is situated in Downtown Bozeman, one block from Main Street. Its central setting and on-site parking provide practical access for occupants and visitors, while the existing layout offers a functional foundation for continued office use.
Built in 1985, the property is situated in Downtown Bozeman, one block from Main Street. Its central setting and on-site parking provide practical access for occupants and visitors, while the existing layout offers a functional foundation for continued office use.
Key Highlights
- Paved parking lot in Downtown Bozeman
- Multiple private offices with reception and conference areas
- One block from Main Street
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 - Interior includes private offices, reception space, and a conference room for flexible professional operations.
Where is this office building located?
The property is located at 125 W Mendenhall Street 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: Paved parking lot in Downtown Bozeman; Multiple private offices with reception and conference areas; One block from Main Street
