Remodeled Multi-Tenant Office
For Sale
$2,250,000
2005 Gilkerson, Bozeman, MT 59715
Remodeled 1978 office building with four of five spaces leased, anchored by the Montana Driver License Bureau.
Property Size9,500 SF
Price / SF$236.84
Days on Market218
Property Features for 2005 Gilkerson
General Information
Standard status
Active
Size
9,500 SF
Property subtype
Commercial
Zoning
M2
Occupancy
80%
Additional Details
Business Included
Yes
Highway Access
Yes
Office Units
5
Taxes and HOA fees
Annual Taxes
$21,411
Building Details
Building Size
9,500 SF
Year Built
1978
Tenancy
Multi
Listing Agency:
REAL Broker
(406) 407-2520
Listed By:
Ashley Keller
(406) 407-2520
Source:
Outlaw
Added: Jan 16
Changed: Aug 22
Last Checked: Aug 22 at 3:41AM
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 REAL Broker
Investment Insights
Based on property information with market context.
This remodeled office building was built in 1978 and is described as well-maintained. The property consists of five building spaces, with four currently leased. Tenant mix includes the State of Montana Driver License Bureau, along with a Jazzercize gym and a spa/massage center, reflecting a versatile set of uses within the office environment.
The building is located in a business park area and is conveniently situated just off the interstate, supporting straightforward access for employees, clients, and service-driven operations. The landlord currently benefits from existing tenancy across multiple space types, rather than a single-tenant setup.
For buyers, the current occupancy profile provides a starting point of stabilized, in-place leasing with a blend of office and service-oriented uses. For prospective tenants, the property’s existing configuration and tenant mix may align well with organizations seeking an established location within a business park setting. Because four spaces are leased at the time of listing, available opportunities will depend on the remaining space(s), which may be suitable for a user looking to join a mixed office and wellness-oriented tenant roster.
The building is located in a business park area and is conveniently situated just off the interstate, supporting straightforward access for employees, clients, and service-driven operations. The landlord currently benefits from existing tenancy across multiple space types, rather than a single-tenant setup.
For buyers, the current occupancy profile provides a starting point of stabilized, in-place leasing with a blend of office and service-oriented uses. For prospective tenants, the property’s existing configuration and tenant mix may align well with organizations seeking an established location within a business park setting. Because four spaces are leased at the time of listing, available opportunities will depend on the remaining space(s), which may be suitable for a user looking to join a mixed office and wellness-oriented tenant roster.
Key Highlights
- Built in 1978 and remodeled office building in a business park area
- 4 of 5 building spaces currently leased
- Anchor tenant: Montana Driver License Bureau (State of Montana Driver License Bureau)
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
$139,750
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
6.21%
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%
$2,795,000
$2.8M
Cap Rate 7%
$1,996,429
$2.0M
Cap Rate 9%
$1,552,778
$1.6M
Market Conditions
NOI Build-Up for 9,500 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
$199.5K $21.00/SF
− Vacancy
−$13.2K −$1.39/SF
EGI
$186.3K $19.61/SF
− OpEx
−$46.6K −$4.90/SF
NOI
$139.7K $14.71/SF
Area
Gallatin County, MT
Vacancy
6.60%
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%
$2,795,000
Cap Rate 7%
$1,996,429
Cap Rate 9%
$1,552,778
Alternative Uses
Best Use
Office B
$2.00M
$1.75M – $2.33M
NOI $139,750 @ 7.0% cap · market cap 6.21%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.48M
$2.17M – $2.89M
NOI $173,645 @ 7.0% cap · market cap 7.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Office units
80%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
629
Businesses Nearby
Explore this area
Business Placement
Demographics for 59715, MT
37,286
Population
17,116
Households
2.2
Avg Household Size
30
Median Age
68%
College-Educated
98%
High-School Grad
294.9 sq mi
ZIP Area
126
Density / Sq Mi
$85,000
Median Household Income
$31,646
Median Earnings
$1,376
Median Rent
$755,300
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 - Remodeled 1978 office building with four of five spaces leased, anchored by the Montana Driver License Bureau.
Where is this office units located?
The property is located at 2005 Gilkerson Bozeman, MT.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Built in 1978 and remodeled office building in a business park area; 4 of 5 building spaces currently leased; Anchor tenant: Montana Driver License Bureau (State of Montana Driver License Bureau)
