Professional Office
For Sale
$875,000
2525 6th Ave N, Billings, MT 59101
Main-level offices, conference rooms, and reception space support a range of professional workplace layouts.
Property Size6,150 SF
Days on Market88
Property Features for 2525 6th Ave N
General Information
Standard status
Active
Size
6,150 SF
Class
B
Property subtype
Office
Building Details
Building Size
6,150 SF
Listing Agency:
Coldwell Banker Commercial CBS
Listed By:
Michael Speidel · License #MT #RRE-RBS-LIC-109468
(406) 601-9695
Source:
Cbcmontana
Added: Jun 7
Changed: Aug 31
Last Checked: Sep 1 at 4:40PM
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 professional office building at 2525 6th Ave N in Billings, Montana, includes a main level arranged with several private offices, conference rooms, and a reception area. The configuration provides distinct work areas alongside space for meetings and visitor arrival.
The property was previously occupied by the law firm of Towe, Ball, Enright, Mackey & Sommerfeld. Its existing office-oriented layout is suited to professional users requiring private rooms, collaborative meeting space, and a formal front-of-house area.
The property was previously occupied by the law firm of Towe, Ball, Enright, Mackey & Sommerfeld. Its existing office-oriented layout is suited to professional users requiring private rooms, collaborative meeting space, and a formal front-of-house area.
Key Highlights
- Main level includes multiple private offices
- Several conference rooms provide dedicated meeting space
- Reception area creates a defined visitor‑entry zone
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
$67,416
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
7.70%
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%
$1,348,320
$1.3M
Cap Rate 7%
$963,086
$963.1K
Cap Rate 9%
$749,067
$749.1K
Market Conditions
NOI Build-Up for 6,150 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
$107.0K $17.40/SF
− Vacancy
−$17.1K −$2.78/SF
EGI
$89.9K $14.62/SF
− OpEx
−$22.5K −$3.65/SF
NOI
$67.4K $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%
$1,348,320
Cap Rate 7%
$963,086
Cap Rate 9%
$749,067
Alternative Uses
Best Use
Office B
$963.1K
$842.7K – $1.12M
NOI $67,416 @ 7.0% cap · market cap 7.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.34M
$1.17M – $1.57M
NOI $93,933 @ 7.0% cap · market cap 10.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,427
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Office building - Main-level offices, conference rooms, and reception space support a range of professional workplace layouts.
Where is this office building located?
The property is located at 2525 6th Ave N Billings, MT.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Main level includes multiple private offices; Several conference rooms provide dedicated meeting space; Reception area creates a defined visitor‑entry zone
