Highway 2 Commercial
For Sale
Contact for pricing
2765 US Hwy 2 W, Kalispell, MT 59901
6.35-acre site with showroom, shop, and storage units.
Property Size12,792 SF
Lot Size6.35 Acres
Price / SF$183.71
Days on Market195
Property Features for 2765 US Hwy 2 W
General Information
Standard status
Active
Size
12,792 SF
Lot size
6.35 Acres
Property subtype
Mixed Use
Investment Type
Value Add
Building Details
Units
4
Listing Agency:
SVN PureWest Commercial Real Estate.
(406) 334-9152
Listed By:
David Girardot · License #RRE-BRO-LIC-12946
Source:
Crexi
Added: Feb 7
Changed: Aug 14
Last Checked: Aug 19 at 8:35PM
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 SVN PureWest Commercial Real Estate.
Investment Insights
Based on property information with market context.
Located along a heavily traveled corridor, this property is positioned on Highway 2 with over 1,000 feet of frontage and exposure to more than 10,000 daily vehicle trips. The site offers convenient access from both directions. The 6.35-acre parcel provides development potential while maintaining easy site access and highway presence, making it suited for businesses requiring high traffic counts and brand exposure. The property includes a 4,840 square foot showroom/office building with two roll-up doors, connected to a 3,360 square foot shop featuring 16-foot walls and pneumatic tool drops. An additional 2,086 square foot enclosed shop plus 637 square feet of lean-to storage provide operational flexibility. Two commercial storage buildings house 20 individual 10x20 units. The terrain offers room for expansion. This Highway 2 property delivers location, infrastructure, and income potential.
Key Highlights
- Prime Highway 2 frontage with over 1,000 feet and high visibility.
- High traffic count: Over 10,000 daily vehicle trips.
- Existing 4,840 SF showroom/office and 3,360 SF shop with professional features.
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
$117,239
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
4.99%
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%
$2,344,780
$2.3M
Cap Rate 7%
$1,674,843
$1.7M
Cap Rate 9%
$1,302,656
$1.3M
Market Conditions
NOI Build-Up for 12,792 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
$191.9K $15.00/SF
− Vacancy
−$11.5K −$0.90/SF
EGI
$180.4K $14.10/SF
− OpEx
−$63.1K −$4.94/SF
NOI
$117.2K $9.17/SF
Area
Flathead County, MT
Vacancy
6.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
35.00%
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%
$2,344,780
Cap Rate 7%
$1,674,843
Cap Rate 9%
$1,302,656
Alternative Uses
Best Use
Flex RnD
$1.67M
$1.47M – $1.95M
NOI $117,239 @ 7.0% cap · market cap 4.99%
Second Best
Industrial
$1.10M
$962.0K – $1.28M
NOI $76,963 @ 7.0% cap · market cap 3.28%
Theoretical Best
Office A
$2.86M
$2.50M – $3.33M
NOI $199,924 @ 7.0% cap · market cap 8.51%
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?
Flex space - 6.35-acre site with showroom, shop, and storage units.
Where is this flex space located?
The property is located at 2765 US Hwy 2 W 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: Prime Highway 2 frontage with over 1,000 feet and high visibility.; High traffic count: Over 10,000 daily vehicle trips.; Existing 4,840 SF showroom/office and 3,360 SF shop with professional features.
