Modern Office Building in
For Sale
Contact for pricing
Pending
2220 Grant Rd, Billings, MT 59102
Premier office building with modern amenities and convenient location.
Property Size25,825 SF
Days on Market743
Property Features for 2220 Grant Rd
General Information
Standard status
Pending
Size
25,825 SF
Class
A
Property subtype
Office
Zoning
CMU2-Corridor Mixed Use 2
Occupancy
100%
Lease Type
NNN
Net Operating Income
$289,186
Building Details
Year Built
1986
Year Renovated
2022
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
U Bar S Real Estate
(406) 652-1151
Listed By:
Jon Ussin · License #MT 4106
Source:
Crexi
Added: Aug 9, 2024
Changed: Aug 8
Last Checked: Aug 20 at 7:39PM
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 U Bar S Real Estate
Investment Insights
Based on property information with market context.
This 25,825 square foot office building is located in the Homestead Business Park in Billings, MT. The property offers versatile office space and is suited for businesses seeking convenience and modern amenities. The main level comprises 13,000 square feet, fully remodeled in 2022, and includes three sets of bathrooms, one equipped with showers. The second floor provides 11,200 square feet and features a newly installed elevator (2023) and an additional set of bathrooms. A 1,625 square foot basement offers secured storage space. Approximately 80 parking spots are available. The building provides easy access to Interstate US 90, facilitating commutes to all parts of Billings. Several restaurants, coffee shops, banks, and retail stores are within walking distance.
Key Highlights
- Prime location in the highly sought‑after Homestead Business Park with easy access to Interstate US 90 and walking distance to amenities.
- Substantial office space totaling 25,825 square feet, suitable for versatile business operations.
- Main level fully remodeled in 2022, featuring modern amenities and multiple bathrooms, including showers.
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
$283,094
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
6.82%
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%
$5,661,880
$5.7M
Cap Rate 7%
$4,044,200
$4.0M
Cap Rate 9%
$3,145,489
$3.1M
Market Conditions
NOI Build-Up for 25,825 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
$449.4K $17.40/SF
− Vacancy
−$71.9K −$2.78/SF
EGI
$377.5K $14.62/SF
− OpEx
−$94.4K −$3.65/SF
NOI
$283.1K $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%
$5,661,880
Cap Rate 7%
$4,044,200
Cap Rate 9%
$3,145,489
Alternative Uses
Best Use
Office B
$4.04M
$3.54M – $4.72M
NOI $283,094 @ 7.0% cap · market cap 6.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.63M
$4.93M – $6.57M
NOI $394,441 @ 7.0% cap · market cap 9.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
799
Businesses Nearby
Explore this area
Business Placement
Demographics for 59102, MT
48,133
Population
22,706
Households
2.1
Avg Household Size
41
Median Age
43%
College-Educated
97%
High-School Grad
15.0 sq mi
ZIP Area
3,209
Density / Sq Mi
$75,140
Median Household Income
$43,203
Median Earnings
$1,148
Median Rent
$307,400
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 - Premier office building with modern amenities and convenient location.
Where is this office building located?
The property is located at 2220 Grant Rd Billings, MT.
What is the asking price?
The asking price for this property is $4,150,000.
What are key features of this property?
This property features: Prime location in the highly sought‑after Homestead Business Park with easy access to Interstate US 90 and walking distance to amenities.; Substantial office space totaling 25,825 square feet, suitable for versatile business operations.; Main level fully remodeled in 2022, featuring modern amenities and multiple bathrooms, including showers.
