Montana Market Watch | 2022
Get an edge on Montana's commercial real estate market.
At MarketWatch 2022, we’re delivering fresh CRE data and looking ahead to opportunities in Missoula and around the state.
Registration is required; free for most attendees. Please see the registration page for the realtor/broker fee.
Hosted by Sterling Commercial Real Estate Advisors
Questions about the event?
A Look Back at Missoula
Economic growth and evolving local industries drive Missoula’s commercial real estate market. It’s a trend that will continue in the coming year. The key to successful investing lies in understanding economic growth and the changing business landscape.
In 2021, experts predict economic recovery in Missoula. The city enjoyed steady employment and economic growth for the past decade. That is until the unexpected events of 2020 stymied that prosperity.
Yet, Missoula suffered less drastic employment drops than most cities across the nation. A diverse economic base and ongoing population growth buffered local losses.
A Look Back at Bozeman
At Bozeman MarketWatch, Ryan Springer, CCIM/lead broker in SterlingCRE’s Bozeman office reviewed the state of the Gallatin County CRE markets. Springer noted that the dominant theme across Bozeman is low vacancy in every asset class. As a result, sale and lease prices are up. Late 2021 and early 2022 were boom months when it came to the prices owners could get for their assets.
What may be balancing low vacancy in the coming 12 – 24 months are many large commercial projects coming to the market. But, as we saw throughout the last 12 months, new builds can be a gamble because of spiking construction costs.
It’s important to put Bozeman vacancy in perspective, says Springer.
Nationwide, retail vacancy is 10.3%, which is triple the local retail vacancy of just under 2.6%.
Industrial assets are tough to find both in Montana and nationwide, with our local vacancy of 0.40% even lower than the national vacancy of around 4%.
Bozeman’s office vacancy rate is 3.01% percent, versus a national vacancy rate of nearly 20% as per JLL.
And while interest rates put the brakes on for some buyers, SterlingCRE is still seeing plenty of capital in the market (including lots of 1031 exchanges). Overall, commercial inventory is light across the board with high demand, limited land supply, and fear of construction costs.
Watch this space for future Bozeman MarketWatch insights.
Contact Ryan Springer, CCIM, here.
Missoula Area Economic Development Success Stories
The diverse businesses establishing roots in Missoula shape demand for commercial real estate. The hottest assets are stabilized investment offerings (especially apartments), accessible distribution centers, specialized lab spaces, and modern offices.
Employment growth driven by these industries will continue to propel the residential market. In turn, demand is likely to increase for retail space and self-storage through 2021.
acquires 40+ acres for vaccine production in Hamilton.
commits to 40,000 square feet of space at the Old Sawmill District.
opens Missoula office.
Film production facilities
spring up in Bonner and Missoula Development Park.
Big Sky Fulfillment
expands operations to 50,000 square feet at Bonner Mill.
We’re optimistic about Missoula’s future in this new terrain.
A Look Back at Missoula MarketWatch 2020
On March 11, 2020, Sterling CRE Advisors hosted Missoula Market Watch, an evening full of insights on commercial real estate in Missoula. A lot has changed in the market since that evening due to the COVID-19 pandemic and resultant near economic shutdown. The full impact of the virus on commercial real estate values, vacancies, and rents remains to be seen.
Sterling CRE Advisors is hopeful that Missoula’s healthy economy and real estate market will help our community weather the storm and recover quickly. While conditions have changed dramatically, much of the content from the evening is still relevant today.
For those of you looking for something educational to binge-watch, the full Missoula Market Watch video can be found on our YouTube channel here.
If you don’t have time to settle in with a beer and popcorn, we have broken the presentations into shorter 5 – 10 minute segments to bring you up to speed on important topics. Check back regularly for new segments.
Using Asset Management to Increase Property Value
Jessica Morina, an experienced asset manager walks us through a case study of how she approaches management changes to maximize a property’s value. By taking steps including enforcing lease terms and renegotiating property service expenses, her approach quickly adds value. Jessica manages commercial properties throughout the state of Montana, with properties in Missoula, Bozeman, Kalispell, and other cities.
Matt Mellott, CCIM
How Not To Overpay For A Deal
Matt Mellott, CCIM walks us through how he evaluates a multifamily deal before investing. He takes us through the process of evaluating the deal and pro-forma objectively, creating a financing plan and calculates a counter offer. Matt specializes in finding and analyzing apartment deals in Missoula, Kalispell and Bozeman, but his process works in any market.
Claire Matten, CCIM Why Investors Love Industrial & Warehouse, Even in a Down Economy
In this segment, Claire Matten, CCIM talks about Industrial and Warehouse, and why it is an asset that is always in demand. In this segment, she discusses the growth of E-Commerce, changes in distribution systems, and key user groups for Industrial space in the future.
Bozeman Market Watch 2020 Presenters:
Claire Matten, CCIM, Sterling CRE Advisors
Industrial & Retail Markets Trends & Investment Insights
Matt Mellott, CCIM, Sterling CRE Advisors
Multifamily & Office Market Trends & Investment Insights
Multifamily & Office Market Trends & Investment Insights
Asset vs. Property Management
Bryce Ward, Founder of ABMJ Consulting
Missoula’s economy: What’s going on and how can we do better?