Downtown Billings Multi-Tenant Office
For Sale
$1,750,000
3312 4th Ave N, Billings, MT 59101
Two-building, renovated office property with on-site parking in downtown Billings.
Property Size15,802 SF
Price / SF$110.75
Days on Market272
Property Features for 3312 4th Ave N
General Information
Standard status
Active
Size
15,802 SF
Property subtype
Office
Building Details
Year Built
1954
Listing Agency:
NAI Business Properties
(406) 690-2320
Listed By:
Michael L. Walker · License #RRE-BRO-LIC-9143
(406) 690-2320
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Jul 6
Last Checked: Aug 20 at 5:27AM
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 NAI Business Properties
Investment Insights
Based on property information with market context.
This 15,802 square foot property features two multi-tenant office buildings located in downtown Billings. Constructed in 1954 and extensively renovated in 2005, the property combines historic character with modern amenities. Situated on a 14,000 square foot lot, the property includes 22 on-site parking stalls. One building offers 5,180 square feet across two floors, plus a 2,174 square foot basement. The second building provides 8,448 square feet on two floors. This property presents an opportunity for investors seeking a foothold in the Billings commercial real estate market, with available space for an owner occupant.
Key Highlights
- Prime downtown Billings location offers high visibility and accessibility.
- Two multi‑tenant office buildings provide diversified income streams.
- Substantial 15,802 SF of office space caters to various tenant sizes.
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
$91,091
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
5.21%
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%
$1,821,820
$1.8M
Cap Rate 7%
$1,301,300
$1.3M
Cap Rate 9%
$1,012,122
$1.0M
Market Conditions
NOI Build-Up for 15,802 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
$142.2K $9.00/SF
− Vacancy
−$12.1K −$0.77/SF
EGI
$130.1K $8.24/SF
− OpEx
−$39.0K −$2.47/SF
NOI
$91.1K $5.76/SF
Area
Billings, MT
Vacancy
8.50%
Lease Rate
$9.00 /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%
$1,821,820
Cap Rate 7%
$1,301,300
Cap Rate 9%
$1,012,122
Alternative Uses
Best Use
Office B
$2.47M
$2.17M – $2.89M
NOI $173,222 @ 7.0% cap · market cap 9.90%
Second Best
Retail
$2.31M
$2.02M – $2.70M
NOI $161,773 @ 7.0% cap · market cap 9.24%
Theoretical Best
Office A
$3.45M
$3.02M – $4.02M
NOI $241,353 @ 7.0% cap · market cap 13.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
808
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Two-building, renovated office property with on-site parking in downtown Billings.
Where is this office building located?
The property is located at 3312 4th Ave N Billings, MT.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Prime downtown Billings location offers high visibility and accessibility.; Two multi‑tenant office buildings provide diversified income streams.; Substantial 15,802 SF of office space caters to various tenant sizes.
