Multi-Structure Flex and Warehouse
For Sale
$595,000
3642 South 56th Street West, Billings, MT 59101
A multi-structure property with a modern 5,000 SF shop, four newer units, and on-site residence with I-90 frontage access.
Property Size5,000 SF
Days on Market81
Property Features for 3642 South 56th Street West
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Industrial
Building Details
Building Size
5,000 SF
Year Built
2020
Listing Agency:
NAI Business Properties
Listed By:
Ethan Kanning · License #RRE-RBS-LIC-45682
(406) 672-0435
Source:
Naiglobal
Added: Jun 17
Changed: Sep 2
Last Checked: Sep 5 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.
The site consists of approximately 1.37 acres and includes multiple structures designed to support a mix of uses. A modern 5,000 SF shop is complemented by four units built in 2020. The property currently benefits from month-to-month tenants, while also offering immediate owner-occupancy potential. An on-site residence supports live-work flexibility.
Located outside city limits with broad county zoning, the property provides I-90 frontage road access and visibility. This combination of functional warehouse space, newer units, and the presence of additional structures supports both income generation and redevelopment optionality.
The overall configuration provides a practical blend of income-producing space and flexibility for an owner-occupant seeking additional space on the same parcel.
Located outside city limits with broad county zoning, the property provides I-90 frontage road access and visibility. This combination of functional warehouse space, newer units, and the presence of additional structures supports both income generation and redevelopment optionality.
The overall configuration provides a practical blend of income-producing space and flexibility for an owner-occupant seeking additional space on the same parcel.
Key Highlights
- Includes a modern 5,000 SF shop and multiple structures on a 1.37‑acre parcel
- 4 units built in 2020 with month‑to‑month tenants for flexible income
- I‑90 frontage road access and visibility outside city limits
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
$39,039
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
6.56%
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%
$780,780
$780.8K
Cap Rate 7%
$557,700
$557.7K
Cap Rate 9%
$433,767
$433.8K
Market Conditions
NOI Build-Up for 5,000 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
$66.0K $13.20/SF
− Vacancy
−$5.9K −$1.19/SF
EGI
$60.1K $12.01/SF
− OpEx
−$21.0K −$4.20/SF
NOI
$39.0K $7.81/SF
Area
Billings, MT
Vacancy
9.00%
Lease Rate
$13.20 /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%
$780,780
Cap Rate 7%
$557,700
Cap Rate 9%
$433,767
Alternative Uses
Best Use
Flex RnD
$557.7K
$488.0K – $650.7K
NOI $39,039 @ 7.0% cap · market cap 6.56%
Second Best
Warehouse
$466.7K
$408.3K – $544.4K
NOI $32,666 @ 7.0% cap · market cap 5.49%
Theoretical Best
Office A
$1.09M
$954.6K – $1.27M
NOI $76,368 @ 7.0% cap · market cap 12.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
51
Businesses Nearby
Well-served
Demand for This Use
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 Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - A multi-structure property with a modern 5,000 SF shop, four newer units, and on-site residence with I-90 frontage access.
Where is this flex space located?
The property is located at 3642 South 56th Street West Billings, MT.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Includes a modern 5,000 SF shop and multiple structures on a 1.37‑acre parcel; 4 units built in 2020 with month‑to‑month tenants for flexible income; I‑90 frontage road access and visibility outside city limits
