Flexible Office
For Sale
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1622 South Avenue West, Missoula, MT 59801
Office property with adaptable interiors, on-site parking, and U-MU4 zoning along a commercial corridor.
Property Size2,412 SF
Price / SF$300.58
Days on Market8
Property Features for 1622 South Avenue West
General Information
Standard status
Active
Size
2,412 SF
Property subtype
Office
Zoning
U-MU4
Listing Agency:
Sterling CRE Advisors
Listed By:
Matt Mellott, CCIM, SIOR · License #MT RRE-RBS-BRO-52907
Source:
Crexi
Added: Sep 8
Changed: Sep 11
Last Checked: Sep 15 at 7:38AM
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 2,412-square-foot office property provides adaptable interior space for a range of professional layouts. U-MU4 zoning supports varied business applications, while on-site parking serves clients and staff.
The property is positioned on South Avenue West in Missoula, between Southgate Mall and Tremper's Shopping Center. Its setting within an established retail district places the office space near two identified shopping centers and along a commercial corridor.
The property is positioned on South Avenue West in Missoula, between Southgate Mall and Tremper's Shopping Center. Its setting within an established retail district places the office space near two identified shopping centers and along a commercial corridor.
Key Highlights
- 2,412‑square‑foot office property
- U‑MU4 zoning
- Adaptable interior layout
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
$32,640
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
4.50%
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%
$652,800
$652.8K
Cap Rate 7%
$466,286
$466.3K
Cap Rate 9%
$362,667
$362.7K
Market Conditions
NOI Build-Up for 2,412 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
$60.8K $25.20/SF
− Vacancy
−$6.4K −$2.65/SF
EGI
$54.4K $22.55/SF
− OpEx
−$21.8K −$9.02/SF
NOI
$32.6K $13.53/SF
Area
Missoula County, MT
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$652,800
Cap Rate 7%
$466,286
Cap Rate 9%
$362,667
Alternative Uses
Best Use
Healthcare Medical
$466.3K
$408.0K – $544.0K
NOI $32,640 @ 7.0% cap · market cap 4.50%
Second Best
Office B
$401.6K
$351.4K – $468.5K
NOI $28,112 @ 7.0% cap · market cap 3.88%
Theoretical Best
Specialty Retail
$695.4K
$608.5K – $811.3K
NOI $48,680 @ 7.0% cap · market cap 6.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office units - Office property with adaptable interiors, on-site parking, and U-MU4 zoning along a commercial corridor.
Where is this office units located?
The property is located at 1622 South Avenue West Missoula, MT.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: 2,412‑square‑foot office property; U‑MU4 zoning; Adaptable interior layout
