Office Building at Busy
For Sale
$1,795,000
2501 S Russell Street, Missoula, MT 59801
Office building positioned at the Brooks and Russell intersection with approximately 50,000 cars per day passing.
Property Size9,807 SF
Price / SF$183.03
Days on Market27
Property Features for 2501 S Russell Street
General Information
Standard status
Active
Size
9,807 SF
Zoning
C1-4, U-MU4
Building Details
Building Size
9,807 SF
Year Built
1953
Units
1
Listing Agency:
PureWest Real Estate - Missoula
(406) 207-8200
Listed By:
Devin Khoury · License #RRE-BRO-LIC-14766
(406) 207-8200
Source:
Purewestrealestate
Added: Jul 28
Changed: Aug 23
Last Checked: Aug 22 at 10:40AM
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 PureWest Real Estate - Missoula
Investment Insights
Based on property information with market context.
This office building is located at the Brooks and Russell intersection in Missoula, with street addresses including 2501 S Russell St and 2400 Brooks St. The property offers 9,807 SF of space and sits at one of the city’s busiest corners. URD monies are available for improvements on the site.
The intersection sees approximately 50,000 cars per day, supporting strong visibility for office users seeking convenient access. MLS 30018594 is also available, which may support adding income and development area.
For buyers evaluating an office asset in a high-traffic node, the existing building size and the improvement funding opportunity are key considerations, alongside the area’s heavy daily vehicle flow.
The intersection sees approximately 50,000 cars per day, supporting strong visibility for office users seeking convenient access. MLS 30018594 is also available, which may support adding income and development area.
For buyers evaluating an office asset in a high-traffic node, the existing building size and the improvement funding opportunity are key considerations, alongside the area’s heavy daily vehicle flow.
Key Highlights
- 9,807 SF office building
- Located at the Brooks and Russell intersection (2501 S Russell and 2400 Brooks St)
- Approximately 50,000 cars/day crossing the intersection
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
$114,301
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
6.37%
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%
$2,286,020
$2.3M
Cap Rate 7%
$1,632,871
$1.6M
Cap Rate 9%
$1,270,011
$1.3M
Market Conditions
NOI Build-Up for 9,807 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
$205.9K $21.00/SF
− Vacancy
−$53.5K −$5.46/SF
EGI
$152.4K $15.54/SF
− OpEx
−$38.1K −$3.89/SF
NOI
$114.3K $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%
$2,286,020
Cap Rate 7%
$1,632,871
Cap Rate 9%
$1,270,011
Alternative Uses
Best Use
Office B
$1.63M
$1.43M – $1.91M
NOI $114,301 @ 7.0% cap · market cap 6.37%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.83M
$2.47M – $3.30M
NOI $197,930 @ 7.0% cap · market cap 11.03%
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building positioned at the Brooks and Russell intersection with approximately 50,000 cars per day passing.
Where is this office building located?
The property is located at 2501 S Russell Street Missoula, MT.
What is the asking price?
The asking price for this property is $1,795,000.
What are key features of this property?
This property features: 9,807 SF office building; Located at the Brooks and Russell intersection (2501 S Russell and 2400 Brooks St); Approximately 50,000 cars/day crossing the intersection
