Versatile Warehouse with Expansion
For Sale
$535,000
8322 N Workshop Ave, Billings, MT 59106
3,408 SF warehouse with high ceilings, ample parking, storage lot.
Property Size3,408 SF
Lot Size0.66 Acres
Price / SF$156.98
Days on Market168
Property Features for 8322 N Workshop Ave
General Information
Standard status
Active
Size
3,408 SF
Lot size
0.66 Acres
Property subtype
Industrial
Building Details
Year Built
2020
Listing Agency:
NAI Business Properties
(406) 860-1567
Listed By:
Brian McDonald · License #RRE-BRO-LIC-12627
(406) 860-1567
Source:
Naiglobal
Added: Mar 6
Changed: Jul 6
Last Checked: Aug 21 at 4:41AM
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 NAI Business Properties
Investment Insights
Based on property information with market context.
This 3,408 SF flex space building offers a versatile layout suitable for various business needs. The property includes two lots totaling 28,619 SF. The warehouse features 16 ft ceilings, providing convenient access for loading and unloading. Ample parking is available, along with a large storage lot. Located in the thriving Billings area, the property has the potential for additional expansion and future growth. It is located near King Avenue West and 80th Street West.
Key Highlights
- Located in the thriving Billings area.
- 3,408 SF flex space building suitable for various business needs.
- High 16 ft ceilings for versatile usage.
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
$26,609
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
4.97%
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%
$532,180
$532.2K
Cap Rate 7%
$380,129
$380.1K
Cap Rate 9%
$295,656
$295.7K
Market Conditions
NOI Build-Up for 3,408 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
$45.0K $13.20/SF
− Vacancy
−$4.0K −$1.19/SF
EGI
$40.9K $12.01/SF
− OpEx
−$14.3K −$4.20/SF
NOI
$26.6K $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%
$532,180
Cap Rate 7%
$380,129
Cap Rate 9%
$295,656
Alternative Uses
Best Use
Flex RnD
$380.1K
$332.6K – $443.5K
NOI $26,609 @ 7.0% cap · market cap 4.97%
Second Best
Warehouse
$318.1K
$278.3K – $371.1K
NOI $22,265 @ 7.0% cap · market cap 4.16%
Theoretical Best
Office A
$743.6K
$650.7K – $867.5K
NOI $52,052 @ 7.0% cap · market cap 9.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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 - 3,408 SF warehouse with high ceilings, ample parking, storage lot.
Where is this flex space located?
The property is located at 8322 N Workshop Ave Billings, MT.
What is the asking price?
The asking price for this property is $535,000.
What are key features of this property?
This property features: Located in the thriving Billings area.; 3,408 SF flex space building suitable for various business needs.; High 16 ft ceilings for versatile usage.
