Retail Space on South
For Sale
Contact for pricing
1518 South Ave W, Missoula, MT
High-visibility retail space with versatile zoning and seller financing.
Property Size2,164 SF
Lot Size0.20 Acres
Price / SF$323.01
Days on Market383
Property Features for 1518 South Ave W
General Information
Standard status
Active
Size
2,164 SF
Lot size
0.20 Acres
Property subtype
RETAIL
Listing Agency:
Sterling CRE Advisors
(406) 370-6424
Listed By:
Connor McMahon · License #RRE-RBS-LIC-88267
(406) 370-6424
Source:
Moodyscre
Added: Jul 25, 2025
Changed: Aug 8
Last Checked: Aug 10 at 11:31AM
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 Sterling CRE Advisors
Investment Insights
Based on property information with market context.
This retail space is located on South Avenue West, benefiting from high visibility and strong traffic exposure at the intersection of South Russell Street and Brooks Street. Its location near Southgate Mall and Trempers Shopping Center enhances visibility to potential clients and customers. The property's B2-1 zoning (City of Missoula) allows for either retail or professional office use. On-site parking and easy access to South Avenue West and the Brooks Street Corridor provide convenience for both customers and employees. The property size is 2164 square feet. Seller financing is available for a well-qualified buyer at the seller's discretion.
Key Highlights
- High‑visibility location with strong traffic exposure.
- Prime positioning near Southgate Mall and Trempers Shopping Center.
- Versatile B2‑1 zoning allows for retail or professional office 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
$26,721
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
3.82%
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%
$534,420
$534.4K
Cap Rate 7%
$381,729
$381.7K
Cap Rate 9%
$296,900
$296.9K
Market Conditions
NOI Build-Up for 2,164 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
$39.0K $18.00/SF
− Vacancy
−$779 −$0.36/SF
EGI
$38.2K $17.64/SF
− OpEx
−$11.5K −$5.29/SF
NOI
$26.7K $12.35/SF
Area
Missoula County, MT
Vacancy
2.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$534,420
Cap Rate 7%
$381,729
Cap Rate 9%
$296,900
Alternative Uses
Best Use
Retail
$381.7K
$334.0K – $445.4K
NOI $26,721 @ 7.0% cap · market cap 3.82%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$623.9K
$545.9K – $727.9K
NOI $43,675 @ 7.0% cap · market cap 6.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,502
Businesses Nearby
161k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Dining 19%
Groceries 18%
Beauty & Spa 1%
Albertsons
Groceries
29,181 visits/mo
0.3 miles
Dollar Tree
Shops & Services
26,690 visits/mo
0.4 miles
Jo-Ann Fabric and Craft
Shops & Services
20,129 visits/mo
0.3 miles
Town Pump
Shops & Services
16,160 visits/mo
0.3 miles
Starbucks
Dining
15,453 visits/mo
0.2 miles
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - High-visibility retail space with versatile zoning and seller financing.
Where is this retail space located?
The property is located at 1518 South Ave W Missoula, MT.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: High‑visibility location with strong traffic exposure.; Prime positioning near Southgate Mall and Trempers Shopping Center.; Versatile B2‑1 zoning allows for retail or professional office use.
