Leased Multi-Story Office
For Sale
$12,100,000
77 Discovery Drive, Bozeman, MT 59715
Fully leased office property with separate elevators serving its two building sections.
Property Size34,304 SF
Lot Size1.95 Acres
Price / SF$352.73
Days on Market1129
Property Features for 77 Discovery Drive
General Information
Standard status
Active
Size
34,304 SF
Elevators
Yes
Lot size
1.95 Acres
Property subtype
Commercial
Zoning
RO - Residential Office
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$60,179
Building Details
Building Size
34,304 SF
Year Built
2012
Buildings
2
Tenancy
Multi
Listing Agency:
Twite Realty Corp
(406) 579-1989
Listed By:
Ethan Stokes
(406) 579-1989
Source:
Outlaw
Added: Jul 29, 2023
Changed: Aug 29
Last Checked: Aug 30 at 2:28PM
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 Twite Realty Corp
Investment Insights
Based on property information with market context.
This office property comprises two connected building sections on approximately 1.95 acres. The original 9,184sf section dates to 1999 and spans two stories with an elevator. A 25,120sf addition completed in 2012 rises three stories, and each section has its own elevator for dedicated access.
The property is fully leased, with lease occupancy supported by the State of Montana and MeatEater. It is located at 77 Discovery Drive in Bozeman, Montana, and carries RO - Residential Office zoning.
The property is fully leased, with lease occupancy supported by the State of Montana and MeatEater. It is located at 77 Discovery Drive in Bozeman, Montana, and carries RO - Residential Office zoning.
Key Highlights
- Fully leased office property with the State of Montana and MeatEater as tenants
- ±1.95 acres at 77 Discovery Drive, Bozeman, MT 59715
- 9,184sf, two‑story office section built in 1999
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
$504,629
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
4.17%
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%
$10,092,580
$10.1M
Cap Rate 7%
$7,208,986
$7.2M
Cap Rate 9%
$5,606,989
$5.6M
Market Conditions
NOI Build-Up for 34,304 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
$720.4K $21.00/SF
− Vacancy
−$47.5K −$1.39/SF
EGI
$672.8K $19.61/SF
− OpEx
−$168.2K −$4.90/SF
NOI
$504.6K $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%
$10,092,580
Cap Rate 7%
$7,208,986
Cap Rate 9%
$5,606,989
Alternative Uses
Best Use
Office B
$7.21M
$6.31M – $8.41M
NOI $504,629 @ 7.0% cap · market cap 4.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.96M
$7.84M – $10.45M
NOI $627,022 @ 7.0% cap · market cap 5.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
172
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 - Fully leased office property with separate elevators serving its two building sections.
Where is this office building located?
The property is located at 77 Discovery Drive Bozeman, MT.
What is the asking price?
The asking price for this property is $12,100,000.
What are key features of this property?
This property features: Fully leased office property with the State of Montana and MeatEater as tenants; ±1.95 acres at 77 Discovery Drive, Bozeman, MT 59715; 9,184sf, two‑story office section built in 1999
