Well-Maintained Office Building with New
For Sale
$419,900
1525 Central Avenue, Billings, MT 59102
SINGLE_FAMILY - Billings, MT
Property Size1,946 SF
Price / SF$215.78
Days on Market11
Property Features for 1525 Central Avenue
General Information
Property type
Residential
Property subtype
Office
Subdivision
Glenn
Lot features
Alley
Standard status
Active
APN
a07461
Size
1,946 SF
Taxes and HOA fees
Tax Description
GLENN SUBD, S05, T01 S, R26 E, BLOCK 1, Lot 11 - 12, & W20' OF LT 10
Tax Annual Amount
2600
Legal Description
GLENN SUBD, S05, T01 S, R26 E, BLOCK 1, Lot 11 - 12, & W20' OF LT 10
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1975
Floors in Building
1
Listing Agency:
Century 21 Americana · Century 21 Real Estate
(406) 294-2121
Listed By:
Mark Dawson · License #RRE-BRO-LIC-8164
(406) 591-0021
Added: Aug 1
Changed: Aug 7
Last Checked: Aug 11 at 10:06PM
MLS# 361039
Copyright © 2026 Billings Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This well-maintained office building offers a straightforward owner-occupied setup or an investment option, with a new roof and a current tenant whose lease is expiring. The building has forced-air natural gas heating and central air conditioning to support year-round comfort.
Built in 1975, the property is served by public water and public sewer. It is sized at 1,946 square feet, making it suitable for a range of office users seeking a manageable footprint.
The current leasing situation provides an opportunity to evaluate near-term occupancy planning, whether you are looking to occupy the space yourself or transition the property to a new tenancy after the existing lease term ends.
Built in 1975, the property is served by public water and public sewer. It is sized at 1,946 square feet, making it suitable for a range of office users seeking a manageable footprint.
The current leasing situation provides an opportunity to evaluate near-term occupancy planning, whether you are looking to occupy the space yourself or transition the property to a new tenancy after the existing lease term ends.
Key Highlights
- New roof
- 1,946 SF office building
- Current tenant lease expiring
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
$21,332
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
5.08%
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%
$426,640
$426.6K
Cap Rate 7%
$304,743
$304.7K
Cap Rate 9%
$237,022
$237.0K
Market Conditions
NOI Build-Up for 1,946 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
$33.9K $17.40/SF
− Vacancy
−$5.4K −$2.78/SF
EGI
$28.4K $14.62/SF
− OpEx
−$7.1K −$3.65/SF
NOI
$21.3K $10.96/SF
Area
Billings, MT
Vacancy
16.00%
Lease Rate
$17.40 /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%
$426,640
Cap Rate 7%
$304,743
Cap Rate 9%
$237,022
Alternative Uses
Best Use
Office B
$304.7K
$266.7K – $355.5K
NOI $21,332 @ 7.0% cap · market cap 5.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$424.6K
$371.5K – $495.4K
NOI $29,722 @ 7.0% cap · market cap 7.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,044
Businesses Nearby
Explore this area
Business Placement
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building with new roof, central air, forced-air natural gas heat, and public water and sewer.
Where is this office building located?
The property is located at 1525 Central Avenue Billings, MT.
What is the asking price?
The asking price for this property is $419,900.
What are key features of this property?
This property features: New roof; 1,946 SF office building; Current tenant lease expiring
