Historic Office Building with
For Sale
$950,000
820 Division Street, Billings, MT 59101
Billings, MT
Property Size5,688 SF
Lot Size0.50 Acres
Price / SF$167.02
Days on Market47
Property Features for 820 Division Street
General Information
Property type
Residential
Property subtype
Office
Subdivision
West Side Add
Standard status
Active
Size
5,688 SF
Lot size
0.50 Acres
Amenities
sunrooms
gathering areas
Building Details
Year built
1918
Listing Agency:
Engel & Volkers Billings · Engel & Völkers
(406) 206-0192
Listed By:
Ryan Thomsen · License #RRE-RBS-LIC-12929
Added: Jul 7
Changed: Aug 20
Last Checked: Aug 22 at 9:06PM
MLS# 360498
Copyright © 2026 Engel & Völkers. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 1918, this 5,688-square-foot office property combines an established professional layout with preserved period craftsmanship. The interior includes multiple office spaces, gathering areas, restrooms, two sunrooms, detailed woodwork, marble elements, and original ornamentation. The configuration supports a range of professional office arrangements while maintaining the character of the underlying building.
The property occupies nearly half an acre at 820 Division Street in Billings, Montana, near the Moss Mansion. Its setting in the 59101 ZIP code places the building within an established area of the city, while the combination of office functionality and historic architectural features gives the asset a distinct physical profile.
The property occupies nearly half an acre at 820 Division Street in Billings, Montana, near the Moss Mansion. Its setting in the 59101 ZIP code places the building within an established area of the city, while the combination of office functionality and historic architectural features gives the asset a distinct physical profile.
Key Highlights
- 5,688‑square‑foot office property built in 1918
- Two sunrooms with detailed woodwork, marble elements, and original ornamentation
- Multiple office spaces, gathering areas, and restrooms
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
$62,352
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
6.56%
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%
$1,247,040
$1.2M
Cap Rate 7%
$890,743
$890.7K
Cap Rate 9%
$692,800
$692.8K
Market Conditions
NOI Build-Up for 5,688 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
$99.0K $17.40/SF
− Vacancy
−$15.8K −$2.78/SF
EGI
$83.1K $14.62/SF
− OpEx
−$20.8K −$3.65/SF
NOI
$62.4K $10.96/SF
Area
Billings, MT
Vacancy
16.00%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
25.00%
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%
$1,247,040
Cap Rate 7%
$890,743
Cap Rate 9%
$692,800
Alternative Uses
Best Use
Office B
$890.7K
$779.4K – $1.04M
NOI $62,352 @ 7.0% cap · market cap 6.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $86,876 @ 7.0% cap · market cap 9.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,983
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - A 1918 property adapted for professional office use while retaining distinctive architectural details.
Where is this office building located?
The property is located at 820 Division Street Billings, MT.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 5,688‑square‑foot office property built in 1918; Two sunrooms with detailed woodwork, marble elements, and original ornamentation; Multiple office spaces, gathering areas, and restrooms
