New Construction Shop
For Sale
$2,100,000
5410 Knox Ave, Billings, MT 59106
New construction shop/warehouse totaling 14,270 SF, offered for sale.
Property Size14,270 SF
Price / SF$147.16
Days on Market95
Property Features for 5410 Knox Ave
General Information
Standard status
Active
Size
14,270 SF
Property subtype
Industrial
Building Details
Building Size
14,270 SF
Year Built
2023
Listed By:
Nathan Matelich, SIOR, CCIM · License #MT #RRE-BRO-LIC-69991
(406) 781-6889
Source:
Cbcmontana
Added: Jun 2
Changed: Sep 4
Last Checked: Sep 4 at 5:05AM
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 Nathan Matelich, SIOR, CCIM
Investment Insights
Based on property information with market context.
This new construction shop/warehouse offers a total of 14,270 SF of warehouse and shop space. The property is presented for sale and is purpose-built as an industrial facility.
The listing is located at 5410 Knox Ave in Billings, MT 59106.
If you’re looking for fresh industrial space with shop and warehouse functionality in a single facility, this newly constructed building is worth reviewing.
The listing is located at 5410 Knox Ave in Billings, MT 59106.
If you’re looking for fresh industrial space with shop and warehouse functionality in a single facility, this newly constructed building is worth reviewing.
Key Highlights
- New construction shop/warehouse totaling 14,270 SF
- Built in 2023
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
$111,417
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
5.31%
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%
$2,228,340
$2.2M
Cap Rate 7%
$1,591,671
$1.6M
Cap Rate 9%
$1,237,967
$1.2M
Market Conditions
NOI Build-Up for 14,270 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
$188.4K $13.20/SF
− Vacancy
−$17.0K −$1.19/SF
EGI
$171.4K $12.01/SF
− OpEx
−$60.0K −$4.20/SF
NOI
$111.4K $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%
$2,228,340
Cap Rate 7%
$1,591,671
Cap Rate 9%
$1,237,967
Alternative Uses
Best Use
Flex RnD
$1.59M
$1.39M – $1.86M
NOI $111,417 @ 7.0% cap · market cap 5.31%
Second Best
Warehouse
$1.33M
$1.17M – $1.55M
NOI $93,227 @ 7.0% cap · market cap 4.44%
Theoretical Best
Office A
$3.11M
$2.72M – $3.63M
NOI $217,954 @ 7.0% cap · market cap 10.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
Explore this area
Business Placement
Demographics for 59106, MT
20,681
Population
8,164
Households
2.5
Avg Household Size
40
Median Age
52%
College-Educated
98%
High-School Grad
112.0 sq mi
ZIP Area
185
Density / Sq Mi
$122,374
Median Household Income
$52,380
Median Earnings
$1,380
Median Rent
$483,100
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?
Flex space - New construction shop/warehouse totaling 14,270 SF, offered for sale.
Where is this flex space located?
The property is located at 5410 Knox Ave Billings, MT.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: New construction shop/warehouse totaling 14,270 SF; Built in 2023
