NNN Property with Fenced
For Sale
Contact for pricing
5816 KENNISON PL, Billings, MT 59101
Separate buildings, access drives, and fenced yard areas accommodate distinct tenant operations with limited shared infrastructure.
Property Size15,417 SF
Lot Size2.40 Acres
Price / SF$130.18
Days on Market106
Property Features for 5816 KENNISON PL
General Information
Standard status
Active
Size
15,417 SF
Lot size
2.40 Acres
Property subtype
Industrial
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$140,507
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Building Details
Year Built
2014
Buildings
3
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
Northmarq Capital, LLC
Listed By:
Brandon Duff · License #IL 475139166
Source:
Crexi
Added: May 18
Changed: Aug 30
Last Checked: Aug 30 at 1:44PM
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 Northmarq Capital, LLC
Investment Insights
Based on property information with market context.
This NNN property contains 15,417 square feet across a three-building layout on a 2.40-acre lot. CentiMark and JM Test Systems occupy separate buildings with dedicated entrances, drive lanes, and fenced yards; only some utilities are shared. The property was built in 2014, and both tenants completed substantial buildout work at their own expense.
The asset is located just off I-90 in Billings, serving as an operating base for both tenants. Each lease includes annual rent increases of 3.00% or 4.00%, and neither tenant has extension options. The separate site components and tenant-maintained areas support a streamlined ownership structure, while ongoing entity-level financial reporting is provided by both tenants.
The asset is located just off I-90 in Billings, serving as an operating base for both tenants. Each lease includes annual rent increases of 3.00% or 4.00%, and neither tenant has extension options. The separate site components and tenant-maintained areas support a streamlined ownership structure, while ongoing entity-level financial reporting is provided by both tenants.
Key Highlights
- 15,417 square feet across a three‑building layout
- 2.40‑acre lot with fenced and graveled yard areas
- Separate tenant buildings, entrances, access drives, and yards
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
$100,721
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
5.02%
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%
$2,014,420
$2.0M
Cap Rate 7%
$1,438,871
$1.4M
Cap Rate 9%
$1,119,122
$1.1M
Market Conditions
NOI Build-Up for 15,417 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
$129.5K $8.40/SF
− Vacancy
−$11.0K −$0.71/SF
EGI
$118.5K $7.69/SF
− OpEx
−$17.8K −$1.15/SF
NOI
$100.7K $6.53/SF
Area
Billings, MT
Vacancy
8.50%
Lease Rate
$8.40 /SF/Yr
Expense Ratio
15.00%
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%
$2,014,420
Cap Rate 7%
$1,438,871
Cap Rate 9%
$1,119,122
Alternative Uses
Best Use
Warehouse
$1.44M
$1.26M – $1.68M
NOI $100,721 @ 7.0% cap · market cap 5.02%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.36M
$2.94M – $3.92M
NOI $235,473 @ 7.0% cap · market cap 11.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
128
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 Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Separate buildings, access drives, and fenced yard areas accommodate distinct tenant operations with limited shared infrastructure.
Where is this nnn property located?
The property is located at 5816 KENNISON PL Billings, MT.
What is the asking price?
The asking price for this property is $2,007,000.
What are key features of this property?
This property features: 15,417 square feet across a three‑building layout; 2.40‑acre lot with fenced and graveled yard areas; Separate tenant buildings, entrances, access drives, and yards
