Renovated Office
For Sale
$1,348,000
Pending
417 W Mendenhall Street, Bozeman, MT 59715
CommercialSale, Bozeman, MT
Property Size3,370 SF
Lot Size0.18 Acres
Days on Market22
Property Features for 417 W Mendenhall Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
B2M
Directions
Start from Main Street in Bozeman, head East, turn North on N 3rd Ave, turn West onto W Mendenhall St, building is on the North side of street
Subdivision
1NE - Boz N of Main/E of 19th
Standard status
Pending
APN
RGG3530
Size
3,370 SF
Lot size
0.18 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
TRACYS 2ND ADD, S12, T02 S, R05 E, BLOCK D, Lot 18 & 19
Tax Annual Amount
13574
Legal Description
TRACYS 2ND ADD, S12, T02 S, R05 E, BLOCK D, Lot 18 & 19
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Amenities
collaborative workspace
kitchenette
washer and dryer
Building Details
Year built
1980
Listing Agency:
Starner Commercial Real Estate
(406) 586-0302
Listed By:
Sunny Odegard · License #BRO-63608
(406) 570-4931
Added: Aug 3
Changed: Aug 19
Last Checked: Aug 24 at 7:06PM
MLS# 413787
Copyright © 2026 Big Sky Country MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
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 property includes an open ground-floor area, seven private rooms, five executive office suites, collaborative workspace, and finished lower-level space. Custom built-ins, upgraded lighting and fixtures, a kitchenette, washer and dryer, and included furnishings are part of the offering.
Zoned B2M, the building supports commercial and mixed-use opportunities. Two offices, the rear entrance, and one bathroom are ADA compliant. Separate front, accessible rear, and lower-level entrances support varied access needs, while the interior can be divided into two spaces. Five dedicated alley-lot parking spaces, including one handicap space, serve the property. Public water and sewer, natural gas forced-air heat, and central air are also in place.
Zoned B2M, the building supports commercial and mixed-use opportunities. Two offices, the rear entrance, and one bathroom are ADA compliant. Separate front, accessible rear, and lower-level entrances support varied access needs, while the interior can be divided into two spaces. Five dedicated alley-lot parking spaces, including one handicap space, serve the property. Public water and sewer, natural gas forced-air heat, and central air are also in place.
Key Highlights
- 3,370 SF 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
Mixed Use
$662.2K
$579.4K – $772.6K
NOI $46,354 @ 7.0% cap · market cap 3.44%
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
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 - Flexible commercial layout with private rooms, executive suites, collaborative space, and furnishings included in the sale.
Where is this office building located?
The property is located at 417 W Mendenhall Street 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 building renovated in 2021; B2M zoning supports commercial and mixed‑use opportunities; Seven private rooms plus five executive office suites
