Flex Space with Overhead
For Sale
$1,100,000
6512 Wagon Trail, Billings, MT 59106
Pre-engineered steel construction provides divided commercial units, bathrooms, and adaptable warehouse space.
Property Size8,400 SF
Lot Size0.53 Acres
Price / SF$130.95
Days on Market20
Property Features for 6512 Wagon Trail
General Information
Standard status
Active
Size
8,400 SF
Lot size
0.53 Acres
Warehouse & Industrial
Clear Height
16 ft
Drive-In Doors
3
Building Details
Building Size
8,400 SF
Construction
pre-engineered steel
Listing Agency:
U Bar S Real Estate
Listed By:
Carlos Davey · License #14186
(406) 652-1151
Source:
Mymontanahomestead
Added: Aug 16
Changed: Aug 29
Last Checked: Sep 2 at 1:27AM
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.
Located at 6512 Wagon Trail in Billings, this flex-space property contains 8,400 square feet within a pre-engineered steel building. The layout includes three units, bathrooms, three overhead doors measuring 12X14, and three man doors. A 16-foot ceiling height supports warehouse-oriented operations, while the property’s cistern and septic tanks serve the site.
Unit A is currently used by the owner. Units B and C are occupied by one tenant, with living quarters included in that arrangement. The property sits on a 0.532-acre lot and is presented with a potential 7.0% cap rate. Its configuration combines warehouse space with separate units for varied commercial occupancy.
Unit A is currently used by the owner. Units B and C are occupied by one tenant, with living quarters included in that arrangement. The property sits on a 0.532-acre lot and is presented with a potential 7.0% cap rate. Its configuration combines warehouse space with separate units for varied commercial occupancy.
Key Highlights
- 8,400 square feet of flex warehouse space
- Three units per building with bathrooms
- Three overhead doors, 12X14, plus 3 man doors
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
$65,586
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
5.96%
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%
$1,311,720
$1.3M
Cap Rate 7%
$936,943
$936.9K
Cap Rate 9%
$728,733
$728.7K
Market Conditions
NOI Build-Up for 8,400 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
$110.9K $13.20/SF
− Vacancy
−$10.0K −$1.19/SF
EGI
$100.9K $12.01/SF
− OpEx
−$35.3K −$4.20/SF
NOI
$65.6K $7.81/SF
Area
Billings, MT
Vacancy
9.00%
Lease Rate
$13.20 /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%
$1,311,720
Cap Rate 7%
$936,943
Cap Rate 9%
$728,733
Alternative Uses
Best Use
Flex RnD
$936.9K
$819.8K – $1.09M
NOI $65,586 @ 7.0% cap · market cap 5.96%
Second Best
Warehouse
$784.0K
$686.0K – $914.6K
NOI $54,878 @ 7.0% cap · market cap 4.99%
Theoretical Best
Office A
$1.83M
$1.60M – $2.14M
NOI $128,298 @ 7.0% cap · market cap 11.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
16 ft
Clear height
3
Drive-in doors
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
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 Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Pre-engineered steel construction provides divided commercial units, bathrooms, and adaptable warehouse space.
Where is this flex space located?
The property is located at 6512 Wagon Trail Billings, MT.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 8,400 square feet of flex warehouse space; Three units per building with bathrooms; Three overhead doors, 12X14, plus 3 man doors
