Medical Office Building with Expansion
For Sale
Contact for pricing
2875 Tina Avenue, Missoula, MT 59808
Purpose-built medical office with expansion and income potential.
Property Size39,326 SF
Price / SF$174.19
Days on Market102
Property Features for 2875 Tina Avenue
General Information
Standard status
Active
Size
39,326 SF
Class
A
Property subtype
Office
Zoning
Missoula LU-MU
Investment Type
Owner/User
Building Details
Year Built
2000
Buildings
1
Listing Agency:
Sterling CRE Advisors
(425) 250-3290
Listed By:
Matt Mellott, CCIM, SIOR · License #MT RRE-RBS-BRO-52907
Source:
Crexi
Added: May 12
Changed: Aug 8
Last Checked: Jul 23 at 4:43PM
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 Sterling CRE Advisors
Investment Insights
Based on property information with market context.
The property at 2875 Tina Avenue is a purpose-built medical office building located in an active commercial area of Missoula. The building has a total area of approximately 39,236 square feet. The main level is approximately 24,372 square feet and is configured as multi-tenant medical office space. The lower level, approximately 14,864 square feet, is unfinished but was originally designed for lab and operatory space, offering expansion possibilities. Access to the lower level is provided by two separate entrances, a personnel elevator, and a freight elevator. The property is partially leased, providing current income from established tenants. Approximately 11,287 square feet of contiguous space is scheduled to become available in the summer of 2026. The building is designed for medical use and includes a covered patient drop-off portico, heated sidewalks, and RFID entry. The interior features high ceilings, architectural beams, and a bright environment. The property is located off North Reserve Street near Costco, with access to Interstate 90, providing accessibility for patients.
Key Highlights
- Purpose‑built medical office building in an active commercial corridor.
- Significant expansion potential with an unfinished ±14,864‑square‑foot lower level designed for lab and operatory space.
- In‑place income from established tenants, with ±11,287 square feet of contiguous space becoming available in Summer 2026.
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
$532,175
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
7.77%
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%
$10,643,500
$10.6M
Cap Rate 7%
$7,602,500
$7.6M
Cap Rate 9%
$5,913,056
$5.9M
Market Conditions
NOI Build-Up for 39,326 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
$991.0K $25.20/SF
− Vacancy
−$104.1K −$2.65/SF
EGI
$887.0K $22.55/SF
− OpEx
−$354.8K −$9.02/SF
NOI
$532.2K $13.53/SF
Area
Missoula County, MT
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$10,643,500
Cap Rate 7%
$7,602,500
Cap Rate 9%
$5,913,056
Alternative Uses
Best Use
Healthcare Medical
$7.60M
$6.65M – $8.87M
NOI $532,175 @ 7.0% cap · market cap 7.77%
Second Best
Office B
$6.55M
$5.73M – $7.64M
NOI $458,345 @ 7.0% cap · market cap 6.69%
Theoretical Best
Specialty Retail
$11.34M
$9.92M – $13.23M
NOI $793,697 @ 7.0% cap · market cap 11.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
857
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 59808, MT
21,546
Population
9,938
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
97%
High-School Grad
157.1 sq mi
ZIP Area
137
Density / Sq Mi
$76,795
Median Household Income
$39,324
Median Earnings
$1,236
Median Rent
$419,800
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?
Medical Office Space - Purpose-built medical office with expansion and income potential.
Where is this medical office space located?
The property is located at 2875 Tina Avenue Missoula, MT.
What is the asking price?
The asking price for this property is $6,850,000.
What are key features of this property?
This property features: Purpose‑built medical office building in an active commercial corridor.; Significant expansion potential with an unfinished ±14,864‑square‑foot lower level designed for lab and operatory space.; In‑place income from established tenants, with ±11,287 square feet of contiguous space becoming available in Summer 2026.
