Renovated Multi-Level Office
For Sale
$1,348,000
Pending
417 W Mendenhall St, Bozeman, MT 59715
B2M-zoned office building with private rooms, executive suites, and flexible multi-level space.
Property Size3,370 SF
Days on Market47
Property Features for 417 W Mendenhall St
General Information
Standard status
Pending
Size
3,370 SF
Total Parking Spaces
5
Property subtype
Commercial
Zoning
B2M
Additional Details
Furnished
Yes
Office Units
12
Amenities
collaborative workspace
kitchenette
washer/dryer
Building Details
Year Built
1980
Year Renovated
2021
Buildings
1
Building Size
3,370 SF
Listing Agency:
Starner Commercial Real Estate
Listed By:
Sunny Odegard · License #BRO-63608
(406) 570-4931
Source:
Bozemanbigskyproperties
Added: Jul 20
Changed: Sep 2
Last Checked: Aug 29 at 4:48PM
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 Starner Commercial Real Estate
Investment Insights
Based on property information with market context.
Renovated in 2021, this 3,370-square-foot office building offers a flexible configuration across multiple levels. The interior includes an open collaborative area, seven private rooms, five executive office suites, and finished basement space. The upper level contains 1,856 square feet, while the basement provides 1,514 square feet. Furnishings are included, along with custom built-ins, upgraded lighting and fixtures, a kitchenette, and laundry equipment.
The property is located at 417 W Mendenhall St in Bozeman’s downtown core and is zoned B2M. Two offices, the rear entrance, and one bathroom meet ADA requirements. Access is available through the front, accessible rear, and basement entrances. Five dedicated alley-lot parking spaces, including one accessible space, are included. The building can also be separated into two distinct spaces.
The property is located at 417 W Mendenhall St in Bozeman’s downtown core and is zoned B2M. Two offices, the rear entrance, and one bathroom meet ADA requirements. Access is available through the front, accessible rear, and basement entrances. Five dedicated alley-lot parking spaces, including one accessible space, are included. The building can also be separated into two distinct spaces.
Key Highlights
- 3,370 SF office building renovated in 2021
- B2M zoning supports commercial and mixed‑use opportunities
- Seven private rooms plus five executive office suites
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
$49,574
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
3.68%
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%
$991,480
$991.5K
Cap Rate 7%
$708,200
$708.2K
Cap Rate 9%
$550,822
$550.8K
Market Conditions
NOI Build-Up for 3,370 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
$70.8K $21.00/SF
− Vacancy
−$4.7K −$1.39/SF
EGI
$66.1K $19.61/SF
− OpEx
−$16.5K −$4.90/SF
NOI
$49.6K $14.71/SF
Area
Gallatin County, MT
Vacancy
6.60%
Lease Rate
$21.00 /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%
$991,480
Cap Rate 7%
$708,200
Cap Rate 9%
$550,822
Alternative Uses
Best Use
Office B
$708.2K
$619.7K – $826.2K
NOI $49,574 @ 7.0% cap · market cap 3.68%
Second Best
Healthcare Medical
$540.7K
$473.1K – $630.8K
NOI $37,847 @ 7.0% cap · market cap 2.81%
Theoretical Best
Office A
$880.0K
$770.0K – $1.03M
NOI $61,598 @ 7.0% cap · market cap 4.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Office units
Location Intelligence
Trade Area within ½ mile
2,221
Businesses Nearby
Explore this area
Business Placement
Demographics for 59715, MT
37,286
Population
17,116
Households
2.2
Avg Household Size
30
Median Age
68%
College-Educated
98%
High-School Grad
294.9 sq mi
ZIP Area
126
Density / Sq Mi
$85,000
Median Household Income
$31,646
Median Earnings
$1,376
Median Rent
$755,300
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 - B2M-zoned office building with private rooms, executive suites, and flexible multi-level space.
Where is this office building located?
The property is located at 417 W Mendenhall St Bozeman, MT.
What is the asking price?
The asking price for this property is $1,348,000.
What are key features of this property?
This property features: 3,370 SF office building renovated in 2021; B2M zoning supports commercial and mixed‑use opportunities; Seven private rooms plus five executive office suites
