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3908 1st Ave S, Billings, MT 59101
Adaptable 3,727 SF commercial space perfect for various business applications.
Property Size3,727 SF
Price / SF$155
Days on Market655
Property Features for 3908 1st Ave S
General Information
Standard status
Active
Size
3,727 SF
Class
A
Property subtype
Industrial
Zoning
CMU1-Corridor Mixed Use 1
Investment Type
Owner/User
Building Details
Year Built
2019
Buildings
1
Stories
2
Units
1
Listing Agency:
Montana Listings
(406) 794-6896
Listed By:
Meagan Martin · License #MT RRE-RBS-LIC-113228
Source:
Crexi
Added: Nov 5, 2024
Changed: Aug 14
Last Checked: Aug 14 at 7:20AM
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 Montana Listings
Investment Insights
Based on property information with market context.
This 3,727-square-foot commercial property is located in Billings, Montana. The main floor spans 3,250 square feet and features an open layout with an office, a large warehouse, and two restrooms. The space has a modern, industrial aesthetic, with polished concrete floors and corrugated metal wall panels. High ceilings and LED lighting create an environment suitable for warehousing, manufacturing, or large-scale retail operations. Large garage doors facilitate loading and unloading. One of the two modern, ADA-compliant restrooms includes a shower. A 477-square-foot upper-level mezzanine provides options for extra storage or office space. This area is equipped with climate control and laminate flooring. The property is suitable for various business applications and offers a blend of industrial design with a functional layout.
Key Highlights
- Large 3,250 sq ft main floor with open layout suitable for warehousing, manufacturing, or retail.
- Modern, industrial aesthetic with polished concrete floors, corrugated metal wall panels, and LED lighting.
- Convenient loading and unloading with large garage 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
$29,100
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
5.04%
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%
$582,000
$582.0K
Cap Rate 7%
$415,714
$415.7K
Cap Rate 9%
$323,333
$323.3K
Market Conditions
NOI Build-Up for 3,727 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
$49.2K $13.20/SF
− Vacancy
−$4.4K −$1.19/SF
EGI
$44.8K $12.01/SF
− OpEx
−$15.7K −$4.20/SF
NOI
$29.1K $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%
$582,000
Cap Rate 7%
$415,714
Cap Rate 9%
$323,333
Alternative Uses
Best Use
Flex RnD
$415.7K
$363.8K – $485.0K
NOI $29,100 @ 7.0% cap · market cap 5.04%
Second Best
Industrial
$306.9K
$268.6K – $358.1K
NOI $21,484 @ 7.0% cap · market cap 3.72%
Theoretical Best
Office A
$813.2K
$711.6K – $948.8K
NOI $56,925 @ 7.0% cap · market cap 9.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
629
Businesses Nearby
Balanced
Demand for This Use
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 Industrial in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Abby's Catering Co — 909 4th St W, Billings, MT 59101
- Littleton's Luck Specialty Foods — 1014 6th St W, Billings, MT 59101
- Crepe Diem — 224 N Broadway, Billings, MT 59101
Frequently Asked Questions
What type of property is this?
Flex space - Adaptable 3,727 SF commercial space perfect for various business applications.
Where is this flex space located?
The property is located at 3908 1st Ave S Billings, MT.
What is the asking price?
The asking price for this property is $577,685.
What are key features of this property?
This property features: Large 3,250 sq ft main floor with open layout suitable for warehousing, manufacturing, or retail.; Modern, industrial aesthetic with polished concrete floors, corrugated metal wall panels, and LED lighting.; Convenient loading and unloading with large garage doors.
