Missoula Midtown Office Space
For Sale
Contact for pricing
2601 Garfield Street, Missoula, MT 59801
Office building with parking in Midtown Missoula near Southgate Mall.
Property Size19,008 SF
Lot Size1.46 Acres
Price / SF$236.74
Days on Market736
Property Features for 2601 Garfield Street
General Information
Standard status
Active
Size
19,008 SF
Lot size
1.46 Acres
Property subtype
Retail, Office
Zoning
C1-4
Building Details
Year Built
1979
Listing Agency:
Sterling CRE Advisors
Listed By:
Matt Mellott, CCIM, SIOR · License #MT RRE-RBS-BRO-52907
Source:
Crexi
Added: Aug 16, 2024
Changed: Aug 17
Last Checked: Aug 14 at 7:21AM
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 Sterling CRE Advisors
Investment Insights
Based on property information with market context.
This property offers an opportunity for office space with parking in Midtown Missoula. The building has a size of approximately 19,008 square feet and is situated on a parcel of approximately 1.46 acres. It includes three drive-thru bays and a private parking lot. The property is located within the Southgate Triangle, adjacent to Southgate Mall. The location benefits from the high traffic on Southgate Mall Access Road and is near the 23,376 daily drivers along the Brook Street Commercial Corridor. Surrounding commercial businesses include Dillards, Texas Roadhouse, Hobby Lobby, and The Trailhead. The site has commercial zoning (City of Missoula, C1-1) and ADA-accessible amenities, including an elevator. This site is suitable for medical office, professional office, or retail use. Financial institutions are not permitted.
Key Highlights
- High‑traffic location adjacent to Southgate Mall and near Brook Street Commercial Corridor.
- Large ±19,008 SF building on a ±1.46 acre parcel with private parking.
- Permissive commercial zoning suitable for medical, professional office, or retail.
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
$221,538
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
4.92%
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%
$4,430,760
$4.4M
Cap Rate 7%
$3,164,829
$3.2M
Cap Rate 9%
$2,461,533
$2.5M
Market Conditions
NOI Build-Up for 19,008 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
$399.2K $21.00/SF
− Vacancy
−$103.8K −$5.46/SF
EGI
$295.4K $15.54/SF
− OpEx
−$73.8K −$3.89/SF
NOI
$221.5K $11.66/SF
Area
Missoula County, MT
Vacancy
26.00%
Lease Rate
$21.00 /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%
$4,430,760
Cap Rate 7%
$3,164,829
Cap Rate 9%
$2,461,533
Alternative Uses
Best Use
Office B
$3.16M
$2.77M – $3.69M
NOI $221,538 @ 7.0% cap · market cap 4.92%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$5.48M
$4.80M – $6.39M
NOI $383,629 @ 7.0% cap · market cap 8.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,398
Businesses Nearby
Explore this area
Business Placement
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building with parking in Midtown Missoula near Southgate Mall.
Where is this office building located?
The property is located at 2601 Garfield Street Missoula, MT.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: High‑traffic location adjacent to Southgate Mall and near Brook Street Commercial Corridor.; Large ±19,008 SF building on a ±1.46 acre parcel with private parking.; Permissive commercial zoning suitable for medical, professional office, or retail.
