Flex Space with Office and
For Sale
$959,000
2404 6th Avenue North, Billings, MT 59101
Office and shop improvements provide a versatile commercial configuration with potential for multiple separate suites.
Property Size6,975 SF
Lot Size0.64 Acres
Price / SF$137.49
Days on Market91
Property Features for 2404 6th Avenue North
General Information
Standard status
Active
Size
6,975 SF
Class
A
Lot size
0.64 Acres
Property subtype
Office
Zoning
DX
Additional Details
Road Access
Yes
Building Details
Building Size
6,975 SF
Buildings
2
Listing Agency:
Coldwell Banker Commercial CBS
(406) 601-9695
Listed By:
Michael Speidel · License #RRE-RBS-LIC-109468
(406) 601-9695
Source:
Cbcmontana
Added: Jun 2
Changed: Aug 30
Last Checked: Jun 9 at 12:04PM
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 Coldwell Banker Commercial CBS
Investment Insights
Based on property information with market context.
This flex property combines a 6,975 SF office building with 1,820 SF of shop space on a 0.64-acre parcel. The office layout can be configured as three separate leasable areas, each with its own private bathroom, creating a practical setup for multiple occupants or users within one commercial asset.
The property fronts 6th Avenue North in Billings and records 14,500 VPD based on 2024 AADT data. It is located within the Downtown Billings TIF District and sits only blocks from Billings Clinic and Intermountain Health. DX Downtown Support permissive zoning adds flexibility to the property’s commercial positioning.
The property fronts 6th Avenue North in Billings and records 14,500 VPD based on 2024 AADT data. It is located within the Downtown Billings TIF District and sits only blocks from Billings Clinic and Intermountain Health. DX Downtown Support permissive zoning adds flexibility to the property’s commercial positioning.
Key Highlights
- 6,975 SF office building paired with 1,820 SF shop space
- 0.64‑acre property fronting 6th Avenue North
- Office area can be divided into three separate leasable spaces
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
$76,460
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
7.97%
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%
$1,529,200
$1.5M
Cap Rate 7%
$1,092,286
$1.1M
Cap Rate 9%
$849,556
$849.6K
Market Conditions
NOI Build-Up for 6,975 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
$121.4K $17.40/SF
− Vacancy
−$19.4K −$2.78/SF
EGI
$101.9K $14.62/SF
− OpEx
−$25.5K −$3.65/SF
NOI
$76.5K $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%
$1,529,200
Cap Rate 7%
$1,092,286
Cap Rate 9%
$849,556
Alternative Uses
Best Use
Office B
$1.09M
$955.8K – $1.27M
NOI $76,460 @ 7.0% cap · market cap 7.97%
Second Best
Flex RnD
$778.0K
$680.7K – $907.7K
NOI $54,459 @ 7.0% cap · market cap 5.68%
Theoretical Best
Office A
$1.52M
$1.33M – $1.78M
NOI $106,533 @ 7.0% cap · market cap 11.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,745
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 59101, MT
41,522
Population
18,864
Households
2.2
Avg Household Size
37
Median Age
22%
College-Educated
91%
High-School Grad
590.8 sq mi
ZIP Area
70
Density / Sq Mi
$58,165
Median Household Income
$36,258
Median Earnings
$930
Median Rent
$243,000
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Crepe Diem — 224 N Broadway, Billings, MT 59101
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Frequently Asked Questions
What type of property is this?
Flex space - Office and shop improvements provide a versatile commercial configuration with potential for multiple separate suites.
Where is this flex space located?
The property is located at 2404 6th Avenue North Billings, MT.
What is the asking price?
The asking price for this property is $959,000.
What are key features of this property?
This property features: 6,975 SF office building paired with 1,820 SF shop space; 0.64‑acre property fronting 6th Avenue North; Office area can be divided into three separate leasable spaces
