Two-Building Office
New
For Sale
$939,000
1600 South Avenue W, Missoula, MT 59801
U-MU4 zoning supports office, retail, restaurant, lodging, residential, and other commercial uses.
Property Size2,540 SF
Price / SF$369.69
Days on Market2
Property Features for 1600 South Avenue W
General Information
Standard status
Active
Size
2,540 SF
Zoning
U-MU4
Amenities
concrete patio
monument signage
mature trees
Building Details
Building Size
2,540 SF
Year Built
1960
Buildings
2
Stories
1
Listing Agency:
Windermere R E Missoula
Listed By:
Kelly Mytty Donoghue
(406) 541-6550
Source:
Purewestrealestate
Added: Sep 2
Last Checked: Sep 2 at 2:15PM
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 Windermere R E Missoula
Investment Insights
Based on property information with market context.
This office property includes two separate buildings with 2,540 SF of enclosed space. The primary structure contains 1,624 SF and includes a reception and waiting area, pass-through reception counter, private offices, kitchen area, and multiple restrooms. A 2009 remodel updated the building for office use. The second structure adds 916 SF and can accommodate office or studio functions subject to applicable zoning requirements.
The parcel at 1600 South Avenue W includes mature trees, landscaping, a concrete patio, off-street parking, and monument signage. Both buildings have freshly painted exteriors. Located within the U-MU4 Urban Mixed-Use Community 2 district, the property supports a range of stated uses, including professional office, retail, restaurant, lodging, light manufacturing, residential, and other commercial applications.
The parcel at 1600 South Avenue W includes mature trees, landscaping, a concrete patio, off-street parking, and monument signage. Both buildings have freshly painted exteriors. Located within the U-MU4 Urban Mixed-Use Community 2 district, the property supports a range of stated uses, including professional office, retail, restaurant, lodging, light manufacturing, residential, and other commercial applications.
Key Highlights
- 2,540 SF of enclosed space across two separate office buildings
- Primary building offers 1,624 SF with reception, private offices, kitchen area, and multiple restrooms
- Secondary building contains 916 SF for office, studio, or other permitted uses
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
$29,604
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
3.15%
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%
$592,080
$592.1K
Cap Rate 7%
$422,914
$422.9K
Cap Rate 9%
$328,933
$328.9K
Market Conditions
NOI Build-Up for 2,540 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
$53.3K $21.00/SF
− Vacancy
−$13.9K −$5.46/SF
EGI
$39.5K $15.54/SF
− OpEx
−$9.9K −$3.89/SF
NOI
$29.6K $11.66/SF
Area
Missoula County, MT
Vacancy
26.00%
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%
$592,080
Cap Rate 7%
$422,914
Cap Rate 9%
$328,933
Alternative Uses
Best Use
Office B
$422.9K
$370.1K – $493.4K
NOI $29,604 @ 7.0% cap · market cap 3.15%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$732.3K
$640.8K – $854.4K
NOI $51,264 @ 7.0% cap · market cap 5.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,771
Businesses Nearby
Explore this area
Business Placement
Demographics for 59801, MT
30,629
Population
15,814
Households
1.9
Avg Household Size
34
Median Age
51%
College-Educated
97%
High-School Grad
7.7 sq mi
ZIP Area
3,978
Density / Sq Mi
$55,022
Median Household Income
$34,320
Median Earnings
$1,086
Median Rent
$393,400
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 - U-MU4 zoning supports office, retail, restaurant, lodging, residential, and other commercial uses.
Where is this office building located?
The property is located at 1600 South Avenue W Missoula, MT.
What is the asking price?
The asking price for this property is $939,000.
What are key features of this property?
This property features: 2,540 SF of enclosed space across two separate office buildings; Primary building offers 1,624 SF with reception, private offices, kitchen area, and multiple restrooms; Secondary building contains 916 SF for office, studio, or other permitted uses
