Multi-Unit Flex
For Sale
$1,950,000
6508-6512 Wagon Trail, Billings, MT 59106
Two steel buildings provide six commercial units with bathrooms and flexible work areas.
Property Size16,800 SF
Days on Market8
Property Features for 6508-6512 Wagon Trail
General Information
Standard status
Active
Size
16,800 SF
Property subtype
Warehouse
Additional Details
Clear Height
16 ft
Taxes and HOA fees
Annual Taxes
$14,398
Building Details
Building Size
16,800 SF
Year Built
2016
Buildings
2
Construction
Pre-engineered Steel
Listing Agency:
U Bar S Real Estate
(406) 652-1151
Listed By:
Carlos Davey · License #RRE-BRO-LIC-24429
(406) 652-1151
Source:
Rehubbillings
Added: Aug 3
Changed: Aug 9
Last Checked: Aug 10 at 2:26AM
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 U Bar S Real Estate
Investment Insights
Based on property information with market context.
This flex-space offering includes two pre-engineered steel buildings, each measuring 8,400 square feet and containing three units with bathrooms. Each building has three overhead doors, three man doors, and 16-foot ceilings. The improvements were constructed in 2016 and are situated on separate lots measuring 0.532 acres per building. Cistern and septic tank systems serve the property.
Located at 6508-6512 Wagon Trail in Billings, Montana, the property includes a six-unit configuration across the two buildings. One unit is currently used by the owner, and unit 6512 B&C includes living quarters.
Located at 6508-6512 Wagon Trail in Billings, Montana, the property includes a six-unit configuration across the two buildings. One unit is currently used by the owner, and unit 6512 B&C includes living quarters.
Key Highlights
- Two 8,400‑square‑foot buildings on separate 0.532‑acre lots
- Six total units, with three units in each building
- Three 12X14 overhead doors and 3 man doors per building
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
$162,288
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
8.32%
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%
$3,245,760
$3.2M
Cap Rate 7%
$2,318,400
$2.3M
Cap Rate 9%
$1,803,200
$1.8M
Market Conditions
NOI Build-Up for 16,800 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
$282.2K $16.80/SF
− Vacancy
−$22.6K −$1.34/SF
EGI
$259.7K $15.46/SF
− OpEx
−$97.4K −$5.80/SF
NOI
$162.3K $9.66/SF
Area
Billings, MT
Vacancy
8.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
37.50%
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%
$3,245,760
Cap Rate 7%
$2,318,400
Cap Rate 9%
$1,803,200
Alternative Uses
Best Use
Office B
$2.63M
$2.30M – $3.07M
NOI $184,162 @ 7.0% cap · market cap 9.44%
Second Best
Mixed Use
$2.32M
$2.03M – $2.70M
NOI $162,288 @ 7.0% cap · market cap 8.32%
Theoretical Best
Office A
$3.67M
$3.21M – $4.28M
NOI $256,596 @ 7.0% cap · market cap 13.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
Location Intelligence
Trade Area within ½ mile
103
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59106, MT
20,681
Population
8,164
Households
2.5
Avg Household Size
40
Median Age
52%
College-Educated
98%
High-School Grad
112.0 sq mi
ZIP Area
185
Density / Sq Mi
$122,374
Median Household Income
$52,380
Median Earnings
$1,380
Median Rent
$483,100
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?
Flex space - Two steel buildings provide six commercial units with bathrooms and flexible work areas.
Where is this flex space located?
The property is located at 6508-6512 Wagon Trail Billings, MT.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: Two 8,400‑square‑foot buildings on separate 0.532‑acre lots; Six total units, with three units in each building; Three 12X14 overhead doors and 3 man doors per building
