Fully Leased Office
For Sale
$1,990,000
322 2nd Ave W, Kalispell, MT 59901
Multi-suite commercial property with private parking, shared common space, and client restrooms.
Property Size12,274 SF
Price / SF$162.13
Days on Market79
Property Features for 322 2nd Ave W
General Information
Standard status
Active
Size
12,274 SF
Occupancy
100%
Additional Details
Cap Rate
6.7%
Office Units
11
Amenities
common area
client bathrooms
Building Details
Year Built
1985
Listing Agency:
eXp Realty - Kalispell
Listed By:
Amy L Kelly · License #14250943-SA00
Source:
Mtranchsales
Added: Jun 16
Changed: Aug 29
Last Checked: Aug 30 at 8:37PM
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 eXp Realty - Kalispell
Investment Insights
Based on property information with market context.
Located at 322 2nd Avenue W in downtown Kalispell, this office building contains 12,274 square feet arranged across 11 office spaces. The property was built in 1985 and is fully rented, providing an established occupancy profile for an office-focused owner.
On-site features include a private parking lot, shared common area, and bathrooms for clients. The building is offered at a 6.7% cap rate and places multiple office suites within Kalispell’s downtown setting.
On-site features include a private parking lot, shared common area, and bathrooms for clients. The building is offered at a 6.7% cap rate and places multiple office suites within Kalispell’s downtown setting.
Key Highlights
- 12,274‑square‑foot office building in downtown Kalispell
- 11 office spaces within the building
- Fully rented commercial property
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
$145,539
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
7.31%
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%
$2,910,780
$2.9M
Cap Rate 7%
$2,079,129
$2.1M
Cap Rate 9%
$1,617,100
$1.6M
Market Conditions
NOI Build-Up for 12,274 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
$228.3K $18.60/SF
− Vacancy
−$34.2K −$2.79/SF
EGI
$194.1K $15.81/SF
− OpEx
−$48.5K −$3.95/SF
NOI
$145.5K $11.86/SF
Area
Flathead County, MT
Vacancy
15.00%
Lease Rate
$18.60 /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%
$2,910,780
Cap Rate 7%
$2,079,129
Cap Rate 9%
$1,617,100
Alternative Uses
Best Use
Office B
$2.08M
$1.82M – $2.43M
NOI $145,539 @ 7.0% cap · market cap 7.31%
Second Best
Mixed Use
$1.24M
$1.08M – $1.44M
NOI $86,532 @ 7.0% cap · market cap 4.35%
Theoretical Best
Office A
$2.74M
$2.40M – $3.20M
NOI $191,828 @ 7.0% cap · market cap 9.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
11
Office units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
2,177
Businesses Nearby
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Multi-suite commercial property with private parking, shared common space, and client restrooms.
Where is this office building located?
The property is located at 322 2nd Ave W Kalispell, MT.
What is the asking price?
The asking price for this property is $1,990,000.
What are key features of this property?
This property features: 12,274‑square‑foot office building in downtown Kalispell; 11 office spaces within the building; Fully rented commercial property
