Renovated Medical Office
New
For Sale
$850,000
1297 Burns Way 2, Kalispell, MT 59901
Configured for healthcare or professional services with multiple offices, clinic rooms, and updated building systems.
Property Size2,323 SF
Price / SF$365.91
Days on Market3
Property Features for 1297 Burns Way 2
General Information
Standard status
Active
Size
2,323 SF
Zoning
H-1/PUD
Additional Details
Furnished
Yes
Utilities to Site
Yes
Building Details
Year Built
1981
Listing Agency:
Coldwell Banker Mountain Properties
(406) 249-2244
Listed By:
Matthew J Waatti · License #30978
Source:
Performance-realestate
Added: Aug 17
Changed: Aug 18
Last Checked: Aug 19 at 10:15AM
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 Coldwell Banker Mountain Properties
Investment Insights
Based on property information with market context.
This 2,323-square-foot medical office condo combines a recently updated interior with a practical clinical layout. The space includes five offices, four clinic rooms, a kitchenette, two bathrooms, and a dedicated server and laundry room. Renovations include fresh paint, new trim, overhead lighting, countertops, doors, and customer-facing glass doors, while original wood details remain in portions of the suite. Heating and cooling were upgraded in 2024.
The property is next to Logan Health Hospital and provides access to ample parking plus street parking. Zoned H-1/PUD, the space supports healthcare and professional-service uses. Utilities are administered by the Burns Building owners, with Unit 2 responsible for 23% of utility costs. Furniture, fixtures, and equipment may also be available, and the owner is open to a furnished sale excluding personal items.
The property is next to Logan Health Hospital and provides access to ample parking plus street parking. Zoned H-1/PUD, the space supports healthcare and professional-service uses. Utilities are administered by the Burns Building owners, with Unit 2 responsible for 23% of utility costs. Furniture, fixtures, and equipment may also be available, and the owner is open to a furnished sale excluding personal items.
Key Highlights
- 2,323‑square‑foot medical office condo next to Logan Health Hospital
- Five offices and four clinic rooms support a clinical or professional layout
- 2024 HVAC upgrade, fresh paint, new trim, lighting, countertops, and doors
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
$29,241
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
3.44%
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%
$584,820
$584.8K
Cap Rate 7%
$417,729
$417.7K
Cap Rate 9%
$324,900
$324.9K
Market Conditions
NOI Build-Up for 2,323 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
$51.6K $22.20/SF
− Vacancy
−$2.8K −$1.22/SF
EGI
$48.7K $20.98/SF
− OpEx
−$19.5K −$8.39/SF
NOI
$29.2K $12.59/SF
Area
Flathead County, MT
Vacancy
5.50%
Lease Rate
$22.20 /SF/Yr
Expense Ratio
40.00%
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%
$584,820
Cap Rate 7%
$417,729
Cap Rate 9%
$324,900
Alternative Uses
Best Use
Healthcare Medical
$417.7K
$365.5K – $487.4K
NOI $29,241 @ 7.0% cap · market cap 3.44%
Second Best
Office B
$393.5K
$344.3K – $459.1K
NOI $27,545 @ 7.0% cap · market cap 3.24%
Theoretical Best
Office A
$518.7K
$453.8K – $605.1K
NOI $36,306 @ 7.0% cap · market cap 4.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,258
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59901, MT
57,900
Population
25,154
Households
2.3
Avg Household Size
40
Median Age
33%
College-Educated
96%
High-School Grad
468.8 sq mi
ZIP Area
124
Density / Sq Mi
$70,391
Median Household Income
$38,073
Median Earnings
$1,052
Median Rent
$417,200
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?
Medical Office Space - Configured for healthcare or professional services with multiple offices, clinic rooms, and updated building systems.
Where is this medical office space located?
The property is located at 1297 Burns Way 2 Kalispell, MT.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 2,323‑square‑foot medical office condo next to Logan Health Hospital; Five offices and four clinic rooms support a clinical or professional layout; 2024 HVAC upgrade, fresh paint, new trim, lighting, countertops, and doors
