Two-Story Office
For Sale
$2,500,000
243 Pegasus Drive, Bozeman, MT 59718
CommercialSale, Bozeman, MT
Property Size10,104 SF
Lot Size0.84 Acres
Price / SF$247.43
Days on Market153
Property Features for 243 Pegasus Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
C
Subdivision
Galactic Park
Directions
From US-191 S/W Main St, continue onto Norris Rd. Turn right onto Pegasus Dr. Destination will be on the right.
Standard status
Active
APN
RGF53929
Size
10,104 SF
Lot size
0.84 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
GALACTIC PARK SUB, S11, T02 S, R04 E, LOT 57, ACRES 0.84, PLAT J-414 PLUS OPEN SPACE
Tax Annual Amount
18957
Legal Description
GALACTIC PARK SUB, S11, T02 S, R04 E, LOT 57, ACRES 0.84, PLAT J-414 PLUS OPEN SPACE
Building Details
Year built
2006
Listing Agency:
Starner Commercial Real Estate
(406) 586-0302
Listed By:
Michael Reams · License #BRO-79158
(406) 451-8283
Added: Mar 25
Changed: Aug 19
Last Checked: Aug 24 at 4:06AM
MLS# 409697
Copyright © 2026 Big Sky Country MLS. 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.
Built in 2006, this two-story office building provides 10,104 square feet on approximately 0.84 acres. The interior includes 21 private offices, four open work areas, a conference room, break room, recording studio, green room, five restrooms, mechanical and storage rooms, and a reception area. An elevator and two stairwells connect the floors. The configuration supports either single-tenant occupancy or multiple users, while a fire suppression system and Four Corners Water & Sewer serve the property. The building is described as being in good condition with no known deferred maintenance.
The property is located at 243 Pegasus Drive in the Galactic Park Subdivision of Four Corners, west of Bozeman. Its low-traffic setting is near the Gallatin River and surrounded by high-end homes, with Zoot Enterprises, Mesa Labs, and Wildfire Defense Systems identified among nearby employers.
The property is located at 243 Pegasus Drive in the Galactic Park Subdivision of Four Corners, west of Bozeman. Its low-traffic setting is near the Gallatin River and surrounded by high-end homes, with Zoot Enterprises, Mesa Labs, and Wildfire Defense Systems identified among nearby employers.
Key Highlights
- 10,104‑square‑foot office building on approximately 0.84 acres
- Built in 2006 with 21 private offices and four open work areas
- Conference room, break room, recording studio, green room, and five restrooms
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
$148,635
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
5.95%
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%
$2,972,700
$3.0M
Cap Rate 7%
$2,123,357
$2.1M
Cap Rate 9%
$1,651,500
$1.7M
Market Conditions
NOI Build-Up for 10,104 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
$212.2K $21.00/SF
− Vacancy
−$14.0K −$1.39/SF
EGI
$198.2K $19.61/SF
− OpEx
−$49.5K −$4.90/SF
NOI
$148.6K $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%
$2,972,700
Cap Rate 7%
$2,123,357
Cap Rate 9%
$1,651,500
Alternative Uses
Best Use
Office B
$2.12M
$1.86M – $2.48M
NOI $148,635 @ 7.0% cap · market cap 5.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.64M
$2.31M – $3.08M
NOI $184,685 @ 7.0% cap · market cap 7.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
101
Businesses Nearby
Explore this area
Business Placement
Demographics for 59718, MT
43,831
Population
19,765
Households
2.2
Avg Household Size
33
Median Age
57%
College-Educated
97%
High-School Grad
164.5 sq mi
ZIP Area
266
Density / Sq Mi
$91,852
Median Household Income
$44,915
Median Earnings
$1,748
Median Rent
$579,800
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 - Flexible office layout with private rooms, open work areas, conference facilities, and multi-tenant capability.
Where is this office building located?
The property is located at 243 Pegasus Drive Bozeman, MT.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 10,104‑square‑foot office building on approximately 0.84 acres; Built in 2006 with 21 private offices and four open work areas; Conference room, break room, recording studio, green room, and five restrooms
