Flexible Two-Tenant Flex
For Sale
$725,000
525-515 Michigan Ave, Missoula, MT 59802
Versatile commercial building with separately metered work areas, overhead doors, power, storage, and paved parking.
Property Size3,781 SF
Price / SF$191.75
Days on Market31
Property Features for 525-515 Michigan Ave
General Information
Standard status
Active
Size
3,781 SF
Building Details
Year Built
1961
Listing Agency:
Ink Realty Group
(406) 880-0595
Listed By:
Julie McLennan · License #RRE-RBS-LIC-108894
Source:
Jasonbakerteam
Added: Aug 2
Changed: Aug 31
Last Checked: Aug 31 at 7:29PM
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 Ink Realty Group
Investment Insights
Based on property information with market context.
Built in 1961, this 3,781-square-foot flex property is arranged for two separately metered commercial spaces. The 2,845-square-foot unit includes 15-foot ceilings, a gas shop heater, 3 phase power, 220V service, a 10-foot overhead garage door, private exterior-access office, and a bathroom with shower. A second-floor mezzanine measuring 43' x 19' adds storage capacity. The 936-square-foot unit has heating, cooling, plumbing, 220V service, two 10-foot overhead garage doors, and an interior division creating two work areas. Its half bath includes a utility sink, water heater, and toilet.
The property is zoned Neighborhood Center and includes paved parking, dedicated accommodation for larger vehicles and trailers, and a divided railroad storage container accessible from both ends. Therma-Star by Pella windows and recent roof maintenance are additional improvements. Located one block from Highway 200 East, the building is minutes from the I-90 corridor and Marshall Mountain Recreation Park in East Missoula.
The property is zoned Neighborhood Center and includes paved parking, dedicated accommodation for larger vehicles and trailers, and a divided railroad storage container accessible from both ends. Therma-Star by Pella windows and recent roof maintenance are additional improvements. Located one block from Highway 200 East, the building is minutes from the I-90 corridor and Marshall Mountain Recreation Park in East Missoula.
Key Highlights
- 3,781‑square‑foot building configured for two separately metered spaces
- Larger unit includes 15‑foot ceilings, 3 phase power, 220V, and a 10‑foot overhead garage door
- Second‑floor 43' x 19' mezzanine provides additional storage
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
$46,715
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
6.44%
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%
$934,300
$934.3K
Cap Rate 7%
$667,357
$667.4K
Cap Rate 9%
$519,056
$519.1K
Market Conditions
NOI Build-Up for 3,781 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
$81.7K $21.60/SF
− Vacancy
−$9.8K −$2.59/SF
EGI
$71.9K $19.01/SF
− OpEx
−$25.2K −$6.65/SF
NOI
$46.7K $12.36/SF
Area
Missoula County, MT
Vacancy
12.00%
Lease Rate
$21.60 /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%
$934,300
Cap Rate 7%
$667,357
Cap Rate 9%
$519,056
Alternative Uses
Best Use
Flex RnD
$667.4K
$583.9K – $778.6K
NOI $46,715 @ 7.0% cap · market cap 6.44%
Second Best
Warehouse
$476.5K
$416.9K – $555.9K
NOI $33,352 @ 7.0% cap · market cap 4.60%
Theoretical Best
Specialty Retail
$1.09M
$953.9K – $1.27M
NOI $76,310 @ 7.0% cap · market cap 10.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
121
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59802, MT
19,892
Population
10,416
Households
1.9
Avg Household Size
37
Median Age
52%
College-Educated
96%
High-School Grad
45.4 sq mi
ZIP Area
438
Density / Sq Mi
$65,054
Median Household Income
$36,541
Median Earnings
$1,021
Median Rent
$420,200
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 - Versatile commercial building with separately metered work areas, overhead doors, power, storage, and paved parking.
Where is this flex space located?
The property is located at 525-515 Michigan Ave Missoula, MT.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: 3,781‑square‑foot building configured for two separately metered spaces; Larger unit includes 15‑foot ceilings, 3 phase power, 220V, and a 10‑foot overhead garage door; Second‑floor 43' x 19' mezzanine provides additional storage
