Listing Agency: Purewest Real Estate - Corporate D***@DaveObe.com Show Phone

Listed By: David Oberlitner · License #RRE-RBS-LIC-14479

Source: Moodyscre

Added: Oct 9, 2025 Changed: Aug 15 Last Checked: Aug 20 at 10:57AM

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Investment Insights

Based on property information with market context.

This 18,352-square-foot light industrial building features six units and is fully leased to five cannabis-related businesses, including two grow operations, two edible manufacturers, and a testing laboratory. The sixth tenant is an injection molding plastics manufacturer. The property benefits from six separately metered 75kVA (480V 3PH) electrical services. The property is located along US Highway 93 North and is subject to US Highway 93 Scenic Corridor Zoning. The property presents an investment opportunity with a reported +8.0% CAP Rate.

Key Highlights

• High CAP Rate: Enjoy an impressive +8.0% return on investment.
• Fully Leased: Benefit from immediate income generation with all units currently occupied.
• Large Industrial Building: 18,000 square feet of usable space.

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

$134,075

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

7.66%

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%

$2,681,500 $2.7M

Cap Rate 7%

$1,915,357 $1.9M

Cap Rate 9%

$1,489,722 $1.5M

Market Conditions

NOI Build-Up for 18,352 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

$165.2K $9.00/SF

− Vacancy

−$7.4K −$0.41/SF

EGI

$157.7K $8.59/SF

− OpEx

−$23.7K −$1.29/SF

NOI

$134.1K $7.31/SF

Area

Flathead County, MT

Vacancy

4.50%

Lease Rate

$9.00 /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%

$2,681,500

Cap Rate 7%

$1,915,357

Cap Rate 9%

$1,489,722

Alternative Uses

Best Use

Warehouse

$1.92M

$1.68M – $2.23M (±1% cap)

NOI $134,075 @ 7.0% cap · market cap 7.66%

Second Best

Industrial

$1.58M

$1.38M – $1.84M (±1% cap)

NOI $110,415 @ 7.0% cap · market cap 6.31%

Theoretical Best

Office A

$4.10M

$3.59M – $4.78M (±1% cap)

NOI $286,820 @ 7.0% cap · market cap 16.39%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Manufacturing properties

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

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Frequently Asked Questions

What type of property is this?

Manufacturing property - Fully leased industrial building with cannabis-related tenants and highway frontage.

Where is this manufacturing property located?

The property is located at 6073 US Highway 93 N Olney, MT.

What is the asking price?

The asking price for this property is $1,750,000.

What are key features of this property?

This property features: High CAP Rate: Enjoy an impressive +8.0% return on investment.; Fully Leased: Benefit from immediate income generation with all units currently occupied.; Large Industrial Building: 18,000 square feet of usable space.