Highway 2 Commercial
For Sale
$2,350,000
2765 U.S Highway 2 West, Kalispell, MT 59901
Commercial property with highway frontage, showroom, shop, and storage.
Property Size12,792 SF
Lot Size6.35 Acres
Price / SF$485.54
Days on Market157
Property Features for 2765 U.S Highway 2 West
General Information
Standard status
Active
Size
12,792 SF
Lot size
6.35 Acres
Property subtype
Industrial
Building Details
Building Size
12,792 SF
Listing Agency:
PureWest Real Estate
(406) 212-0112
Listed By:
David Girardot · License #RRE-RBS-LIC-109095
(406) 212-0112
Source:
Svn
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 8 at 6:06AM
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
Investment Insights
Based on property information with market context.
This commercial property offers significant exposure on Highway 2, featuring over 1,000 feet of highway frontage on a 6.35-acre site. The location benefits from high visibility and access from both directions, with traffic exceeding 10,000 vehicles daily. The property includes a 4,840-square-foot showroom/office building equipped with two roll-up doors. It is connected to a 3,360-square-foot shop that features 16-foot walls and pneumatic tool drops. There is an additional 2,086-square-foot enclosed shop, along with a 637-square-foot lean-to storage area. Two commercial storage buildings house 20 individual 10x20 storage units. The site's gently sloping terrain allows for further development. The property is positioned along a heavily traveled corridor, offering convenient access and strong brand exposure, making it suitable for businesses requiring high traffic counts.
Key Highlights
- High‑traffic location with over 1,000 feet of Highway 2 frontage and exposure to over 10,000 vehicles daily.
- Substantial existing infrastructure: 4,840 SF showroom/office, 3,360 SF shop, and additional 2,086 SF enclosed shop.
- Immediate income potential from 20 storage units (10x20).
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
$68,658
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
2.92%
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%
$1,373,160
$1.4M
Cap Rate 7%
$980,829
$980.8K
Cap Rate 9%
$762,867
$762.9K
Market Conditions
NOI Build-Up for 4,840 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
$101.6K $21.00/SF
− Vacancy
−$3.6K −$0.74/SF
EGI
$98.1K $20.27/SF
− OpEx
−$29.4K −$6.08/SF
NOI
$68.7K $14.19/SF
Area
Flathead County, MT
Vacancy
3.50%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,373,160
Cap Rate 7%
$980,829
Cap Rate 9%
$762,867
Alternative Uses
Best Use
Retail
$980.8K
$858.2K – $1.14M
NOI $68,658 @ 7.0% cap · market cap 2.92%
Second Best
Self Storage
$662.1K
$579.4K – $772.5K
NOI $46,348 @ 7.0% cap · market cap 1.97%
Theoretical Best
Office A
$1.08M
$945.5K – $1.26M
NOI $75,643 @ 7.0% cap · market cap 3.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
33
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59901, MT
57,900
Population
25,154
Households
2.3
Avg Household Size
40
Median Age
33%
College-Educated
96%
High-School Grad
468.8 sq mi
ZIP Area
124
Density / Sq Mi
$70,391
Median Household Income
$38,073
Median Earnings
$1,052
Median Rent
$417,200
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Showroom - Commercial property with highway frontage, showroom, shop, and storage.
Where is this showroom located?
The property is located at 2765 U.S Highway 2 West Kalispell, MT.
What is the asking price?
The asking price for this property is $2,350,000.
What are key features of this property?
This property features: High‑traffic location with over 1,000 feet of Highway 2 frontage and exposure to over 10,000 vehicles daily.; Substantial existing infrastructure: 4,840 SF showroom/office, 3,360 SF shop, and additional 2,086 SF enclosed shop.; Immediate income potential from 20 storage units (10x20).
