Office Condo with Private
For Sale
$400,000
1540 Lake Elmo Drive, Billings, MT 59105
COMMERCIAL - Billings, MT
Property Size1,980 SF
Price / SF$202.02
Days on Market66
Property Features for 1540 Lake Elmo Drive
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Neighborhood Office-Residential
Parking
6
Appliances
Refrigerator
Subdivision
Lake Elmo Professional Center
Lot features
Alley
Standard status
Active
APN
A29273
Size
1,980 SF
Taxes and HOA fees
Tax Description
LAKE ELMO PROFESSIONAL CENTER, S22, T01 N, R26 E, UNIT 5, 6.5% COMMON AREA INTEREST, LOC @ LTS 1-2 & 3A BLK 1 MCCRACKEN SUB
Tax Annual Amount
980
Legal Description
LAKE ELMO PROFESSIONAL CENTER, S22, T01 N, R26 E, UNIT 5, 6.5% COMMON AREA INTEREST, LOC @ LTS 1-2 & 3A BLK 1 MCCRACKEN SUB
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Cooling system
Central Air
Water source
Public
Building Details
Year built
2000
Floors in Building
1
Roof type
Shingle, Asphalt
Listing Agency:
Meridian Real Estate LLC
(406) 671-6955
Listed By:
Lauraleah Griffin · License #RRE-BRO-LIC-98920
(406) 208-4003
Added: Jun 17
Changed: Aug 19
Last Checked: Aug 21 at 12:06AM
MLS# 359980
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 office condo is configured with seven private office spaces, two bathrooms, a receptionist area, and a full kitchen/break room. The unit includes a refrigerator, with forced-air natural gas heating and central air conditioning. The roof is shingle/asphalt, and the property was built in 2000.
Public utilities include public water and public sewer service. The building is located at 1540 Lake Elmo Drive in Billings, Montana (Yellowstone County).
With its private office layout and dedicated reception and break-room components, the space supports a range of professional office uses for both owner-occupants and investors.
Public utilities include public water and public sewer service. The building is located at 1540 Lake Elmo Drive in Billings, Montana (Yellowstone County).
With its private office layout and dedicated reception and break-room components, the space supports a range of professional office uses for both owner-occupants and investors.
Key Highlights
- Configured with seven private office spaces
- Receptionist area plus a full kitchen/break room
- Two bathrooms
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
$21,705
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
5.43%
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%
$434,100
$434.1K
Cap Rate 7%
$310,071
$310.1K
Cap Rate 9%
$241,167
$241.2K
Market Conditions
NOI Build-Up for 1,980 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
$34.5K $17.40/SF
− Vacancy
−$5.5K −$2.78/SF
EGI
$28.9K $14.62/SF
− OpEx
−$7.2K −$3.65/SF
NOI
$21.7K $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%
$434,100
Cap Rate 7%
$310,071
Cap Rate 9%
$241,167
Alternative Uses
Best Use
Office B
$310.1K
$271.3K – $361.8K
NOI $21,705 @ 7.0% cap · market cap 5.43%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$432.0K
$378.0K – $504.0K
NOI $30,242 @ 7.0% cap · market cap 7.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Office units
Location Intelligence
Trade Area within ½ mile
544
Businesses Nearby
Explore this area
Business Placement
Demographics for 59105, MT
33,310
Population
14,198
Households
2.3
Avg Household Size
37
Median Age
30%
College-Educated
96%
High-School Grad
95.9 sq mi
ZIP Area
347
Density / Sq Mi
$74,572
Median Household Income
$44,359
Median Earnings
$1,261
Median Rent
$314,900
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 units - Office condo configured with seven private offices, a reception area, and a kitchen/break room.
Where is this office units located?
The property is located at 1540 Lake Elmo Drive Billings, MT.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Configured with seven private office spaces; Receptionist area plus a full kitchen/break room; Two bathrooms
