High-Traffic Retail Pad
For Sale
$750,000
1503 Grand Avenue, Billings, MT 59102
Retail pad site with frontage on a lit intersection.
Property Size2,749 SF
Price / SF$272.83
Days on Market273
Property Features for 1503 Grand Avenue
General Information
Standard status
Active
Size
2,749 SF
Property subtype
Retail
Building Details
Building Size
2,749 SF
Year Built
1981
Listing Agency:
NAI Business Properties
(406) 672-1443
Listed By:
Haley Vannatta, CCIM · License #MT #62446
(406) 672-1443
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:54AM
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.
This retail pad site benefits from high traffic and excellent frontage on Grand Avenue at a lit intersection. The property currently features a 2,749-square-foot retail or convenience store. A billboard lease accompanies the property. Originally constructed as a gas station in 1981, all tanks have been removed. The lot size is 15,000 square feet. The zoning is CMU2. Grand Avenue experiences an average daily traffic count of 22,750, while 15th Street West sees 8,732 vehicles daily. Billings, located in south-central Montana and the seat of Yellowstone County, had an estimated population of 111,150 in 2016, making it the state's largest city. The area is experiencing rapid growth and a strong economy.
Key Highlights
- High‑traffic location on Grand Avenue with excellent frontage and a lit intersection (ADT: 22,750).
- Existing 2,749 SF retail/C‑store building on a 15,000 SF lot.
- Billboard lease included with the property.
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
$32,732
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
4.36%
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%
$654,640
$654.6K
Cap Rate 7%
$467,600
$467.6K
Cap Rate 9%
$363,689
$363.7K
Market Conditions
NOI Build-Up for 2,749 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
$44.5K $16.20/SF
− Vacancy
−$891 −$0.32/SF
EGI
$43.6K $15.88/SF
− OpEx
−$10.9K −$3.97/SF
NOI
$32.7K $11.91/SF
Area
Billings, MT
Vacancy
2.00%
Lease Rate
$16.20 /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%
$654,640
Cap Rate 7%
$467,600
Cap Rate 9%
$363,689
Alternative Uses
Best Use
Specialty Retail
$467.6K
$409.2K – $545.5K
NOI $32,732 @ 7.0% cap · market cap 4.36%
Second Best
Retail
$402.0K
$351.8K – $469.1K
NOI $28,143 @ 7.0% cap · market cap 3.75%
Theoretical Best
Office A
$599.8K
$524.8K – $699.8K
NOI $41,987 @ 7.0% cap · market cap 5.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,029
Businesses Nearby
176k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 33%
Dining 32%
Groceries 20%
Home Improvements & Furnishings 13%
Albertsons
Groceries
29,426 visits/mo
0.3 miles
Red Robin Gourmet Burgers
Dining
17,702 visits/mo
0.1 miles
Panda Express
Dining
17,394 visits/mo
0.1 miles
Holiday Station Store
Shops & Services
15,469 visits/mo
0.3 miles
U.S. Bank
Shops & Services
10,726 visits/mo
0.3 miles
Demographics for 59102, MT
48,133
Population
22,706
Households
2.1
Avg Household Size
41
Median Age
43%
College-Educated
97%
High-School Grad
15.0 sq mi
ZIP Area
3,209
Density / Sq Mi
$75,140
Median Household Income
$43,203
Median Earnings
$1,148
Median Rent
$307,400
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Gas station - Retail pad site with frontage on a lit intersection.
Where is this gas station located?
The property is located at 1503 Grand Avenue Billings, MT.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: High‑traffic location on Grand Avenue with excellent frontage and a lit intersection (ADT: 22,750).; Existing 2,749 SF retail/C‑store building on a 15,000 SF lot.; Billboard lease included with the property.
