Modern Mixed-Use Commercial
For Sale
$198,000
112 3rd Avenue, Laurel, MT 59044
Built in 2021, this downtown Laurel building offers large windows and a flexible layout for office or retail use.
Property Size625 SF
Price / SF$316.80
Days on Market59
Property Features for 112 3rd Avenue
General Information
Standard status
Active
Size
625 SF
Class
A
Property subtype
Office - General Office
Additional Details
Highway Access
Yes
Building Details
Building Size
625 SF
Year Built
2021
Listing Agency:
NAI Business Properties
(406) 671-1158
Listed By:
Matt Robertson, SIOR
Source:
Commercialcafe
Added: Jun 23
Changed: Aug 14
Last Checked: Aug 18 at 7:10AM
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 NAI Business Properties
Investment Insights
Based on property information with market context.
Located in downtown Laurel, Montana, 112 3rd Avenue is a newer commercial building built in 2021. The exterior features contemporary wood and stone finishes with black metal accents, along with a prominent entrance designed to support a professional appearance.
Large windows provide natural light throughout the interior, and the building’s efficient layout is intended for a range of commercial uses, including office, retail, wellness, salon, or professional services. The property is described as move-in-ready with low-maintenance, modern construction.
With a versatile interior configuration and a central downtown setting, the building offers a practical option for an owner-operator or a tenant seeking a newer commercial space in Laurel.
Large windows provide natural light throughout the interior, and the building’s efficient layout is intended for a range of commercial uses, including office, retail, wellness, salon, or professional services. The property is described as move-in-ready with low-maintenance, modern construction.
With a versatile interior configuration and a central downtown setting, the building offers a practical option for an owner-operator or a tenant seeking a newer commercial space in Laurel.
Key Highlights
- Built in 2021: 1,625 SF commercial building in downtown Laurel, MT
- Large windows throughout for abundant natural light
- Flexible interior layout suitable for office, retail, wellness, salon, or professional service use
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
$7,172
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
3.62%
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%
$143,440
$143.4K
Cap Rate 7%
$102,457
$102.5K
Cap Rate 9%
$79,689
$79.7K
Market Conditions
NOI Build-Up for 625 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
$11.3K $18.00/SF
− Vacancy
−$1.7K −$2.70/SF
EGI
$9.6K $15.30/SF
− OpEx
−$2.4K −$3.82/SF
NOI
$7.2K $11.48/SF
Area
Yellowstone County, MT
Vacancy
15.00%
Lease Rate
$18.00 /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%
$143,440
Cap Rate 7%
$102,457
Cap Rate 9%
$79,689
Alternative Uses
Best Use
Office B
$102.5K
$89.7K – $119.5K
NOI $7,172 @ 7.0% cap · market cap 3.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$135.8K
$118.8K – $158.4K
NOI $9,504 @ 7.0% cap · market cap 4.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
457
Businesses Nearby
Explore this area
Business Placement
Demographics for 59044, MT
12,099
Population
5,247
Households
2.3
Avg Household Size
41
Median Age
27%
College-Educated
95%
High-School Grad
175.1 sq mi
ZIP Area
69
Density / Sq Mi
$86,011
Median Household Income
$40,535
Median Earnings
$983
Median Rent
$317,200
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?
Office building - Built in 2021, this downtown Laurel building offers large windows and a flexible layout for office or retail use.
Where is this office building located?
The property is located at 112 3rd Avenue Laurel, MT.
What is the asking price?
The asking price for this property is $198,000.
What are key features of this property?
This property features: Built in 2021: 1,625 SF commercial building in downtown Laurel, MT; Large windows throughout for abundant natural light; Flexible interior layout suitable for office, retail, wellness, salon, or professional service use
