Missoula Industrial Opportunity For
For Sale
Contact for pricing
7600 Desmet Rd, Missoula, MT 59808
46,550 SF industrial building with rent upside potential.
Property Size46,550 SF
Price / SF$123.52
Days on Market710
Property Features for 7600 Desmet Rd
General Information
Standard status
Active
Size
46,550 SF
Property subtype
Industrial
Zoning
Industrial Center Light (ICL)
Occupancy
100%
Lease Type
NNN
Investment Type
Value Add
Building Details
Year Built
1973
Buildings
1
Stories
1
Units
4
Tenancy
Multi
Listing Agency:
Sterling CRE Advisors
Listed By:
Claire Matten, CCIM/SIOR · License #RRE-BRO-LIC-90048
(406) 360-3102
Source:
Crexi
Added: Sep 26, 2024
Changed: Aug 14
Last Checked: Sep 3 at 6:43AM
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.
Located just west of Development Park in Missoula’s high-growth corridor, the property at 7600 - 7604 Desmet presents a unique industrial opportunity. This ±46,550 square foot, four-unit industrial building offers immediate occupancy and ample rent upside potential, making it an ideal fit for an owner-occupier or investor. The property provides the flexibility for an owner-user to occupy available space while collecting income from existing tenants, or for an investor to reposition and capitalize on below-market rents. The building features exceptional visibility from I-90, eight grade-level doors, one dock-high loading door, light industrial zoning, and flat topography with generous parking, yard storage, and multiple access points. With a mix of occupancy and vacancy, 7600 - 7604 Desmet presents a compelling opportunity for both immediate use and long-term value creation in one of Montana’s most active industrial markets.
Key Highlights
- Immediate occupancy and rent upside potential for owner‑occupiers or investors.
- Located in Missoula's high‑growth corridor with exceptional visibility from I‑90.
- ±46,550 square foot, four‑unit industrial building offering flexibility**.
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
$338,154
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
5.88%
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%
$6,763,080
$6.8M
Cap Rate 7%
$4,830,771
$4.8M
Cap Rate 9%
$3,757,267
$3.8M
Market Conditions
NOI Build-Up for 46,550 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
$513.9K $11.04/SF
− Vacancy
−$30.8K −$0.66/SF
EGI
$483.1K $10.38/SF
− OpEx
−$144.9K −$3.11/SF
NOI
$338.2K $7.26/SF
Area
Missoula County, MT
Vacancy
6.00%
Lease Rate
$11.04 /SF/Yr
Expense Ratio
30.00%
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%
$6,763,080
Cap Rate 7%
$4,830,771
Cap Rate 9%
$3,757,267
Alternative Uses
Best Use
Flex RnD
$8.22M
$7.19M – $9.59M
NOI $575,135 @ 7.0% cap · market cap 10.00%
Second Best
Industrial
$4.83M
$4.23M – $5.64M
NOI $338,154 @ 7.0% cap · market cap 5.88%
Theoretical Best
Specialty Retail
$13.42M
$11.74M – $15.66M
NOI $939,495 @ 7.0% cap · market cap 16.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
82
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59808, MT
21,546
Population
9,938
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
97%
High-School Grad
157.1 sq mi
ZIP Area
137
Density / Sq Mi
$76,795
Median Household Income
$39,324
Median Earnings
$1,236
Median Rent
$419,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - 46,550 SF industrial building with rent upside potential.
Where is this flex space located?
The property is located at 7600 Desmet Rd Missoula, MT.
What is the asking price?
The asking price for this property is $5,750,000.
What are key features of this property?
This property features: Immediate occupancy and rent upside potential for owner‑occupiers or investors.; Located in Missoula's high‑growth corridor with **exceptional visibility from I‑90**.; ±46,550 square foot, four‑unit industrial building offering flexibility**.
