Downtown Building on Missoula Hip
For Sale
$1,050,000
817 S Higgins Ave, Missoula, MT 59801
4,200 SF brick building on the Missoula Hip Strip.
Property Size4,200 SF
Lot Size0.10 Acres
Price / SF$250
Days on Market207
Property Features for 817 S Higgins Ave
General Information
Standard status
Active
Size
4,200 SF
Lot size
0.10 Acres
Taxes and HOA fees
Annual Taxes
$17,758
Listing Agency:
Coldwell Banker Commercial Drew Ward Warne Advisory Group
(406) 596-4000
Listed By:
Katie Ward · License #RRE-RBS-LIC-24957
(406) 596-4000
Source:
Exprealty
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 8 at 6:01AM
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 Coldwell Banker Commercial Drew Ward Warne Advisory Group
Investment Insights
Based on property information with market context.
Located on Missoula’s Hip Strip, this 4,200-square-foot brick building features 14 ft +/- ceilings. The building has been owner-occupied and well-maintained for over 25 years. The design, open floor plan, and tall ceilings lend itself to user owner, single-tenant, or multi-tenant use. An additional area is available on the second level. A rooftop cellular antenna lease provides additional income with a renewable contract. The property has high visibility storefront frontage on S Higgins Avenue with over 21,000 daily traffic count (VPD). The Hip Strip is a destination for tourists and locals with restaurants and shops that are locally owned and operated. It is a 13-minute drive to MSO Airport and walking distance to Downtown Missoula & Caras Park, which hosts festivals and events attracting over half a million people each year. The property is 5 minutes from The University of Montana Campus & Washington Grizzly Football Stadium, attracting over 11,000 students per year & 25,000+ football fans per game.
Key Highlights
- Prime location on Missoula's Hip Strip with high visibility storefront and 21,000+ daily traffic count.
- Spacious 4,200 sq ft brick building with additional second‑level area and 14 ft +/- ceilings.
- Versatile space suitable for owner‑occupier, single‑tenant, or multi‑tenant use.
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
$51,862
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
4.94%
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%
$1,037,240
$1.0M
Cap Rate 7%
$740,886
$740.9K
Cap Rate 9%
$576,244
$576.2K
Market Conditions
NOI Build-Up for 4,200 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
$75.6K $18.00/SF
− Vacancy
−$1.5K −$0.36/SF
EGI
$74.1K $17.64/SF
− OpEx
−$22.2K −$5.29/SF
NOI
$51.9K $12.35/SF
Area
Missoula County, MT
Vacancy
2.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,037,240
Cap Rate 7%
$740,886
Cap Rate 9%
$576,244
Alternative Uses
Best Use
Retail
$740.9K
$648.3K – $864.4K
NOI $51,862 @ 7.0% cap · market cap 4.94%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.21M
$1.06M – $1.41M
NOI $84,767 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,326
Businesses Nearby
24k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 53%
Dining 17%
Hotels & Casinos 16%
Shops & Services 14%
Orange Street Food Farm
Groceries
12,830 visits/mo
0.4 miles
Great Harvest Bread Co.
Dining
4,046 visits/mo
0.3 miles
Holiday Inn Missoula Downtown, an IHG Hotel
Hotels & Casinos
3,823 visits/mo
0.4 miles
Charles Schwab
Shops & Services
2,564 visits/mo
0.1 miles
Midas
Shops & Services
820 visits/mo
0.5 miles
Demographics for 59801, MT
30,629
Population
15,814
Households
1.9
Avg Household Size
34
Median Age
51%
College-Educated
97%
High-School Grad
7.7 sq mi
ZIP Area
3,978
Density / Sq Mi
$55,022
Median Household Income
$34,320
Median Earnings
$1,086
Median Rent
$393,400
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - 4,200 SF brick building on the Missoula Hip Strip.
Where is this storefront property located?
The property is located at 817 S Higgins Ave Missoula, MT.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: Prime location on Missoula's Hip Strip with high visibility storefront and 21,000+ daily traffic count.; Spacious 4,200 sq ft brick building with additional second‑level area and 14 ft +/- ceilings.; Versatile space suitable for owner‑occupier, single‑tenant, or multi‑tenant use.
