What commercial real estate opportunities should you look for in Kalispell, Montana?
While it doesn’t get quite as much airtime as Missoula or Bozeman, Kalispell is experiencing the same expansive growth as other major Montana cities – and the Kalispell commercial real estate sector shows great potential. The City of Kalispell reports that residential permitting, including multifamily buildings, have broken records for three consecutive years. The latest census report shows a 15% increase in population. The median age skews younger, coming in at 36 years old.
Positioned between Glacier National Park and the largest freshwater lake in the western US, there is lots to love about Kalispell and neighboring cities Whitefish and Columbia Falls.
From a CRE perspective, the Kalispell market has been surging for a few years now. The pros are lots of opportunities for multifamily investments, as well as hospitality. Hotels and retail are key assets in this heavily tourism-driven market. Kalispell is in a large valley with room to grow.
Claire Matten, CCIM, notes that self-storage in Kalispell and the surrounding areas has seen high demand in recent years. “With ample opportunities to ski, hunt, boat, and fish, the demand for storage goes up,” she says. “Boats, snow mobiles, and other recreational vehicles are spendy and folks want them to be secure during the off-season. In turn, self-storage vacancy stays fairly low across the region.”
The area does, of course, have those famous Montana winters, but the winds and snow are buffered slightly by mountain ranges on all sides.
But no city is perfect. The local economy can fluctuate quite a bit. During the pandemic, Kalispell suffered as visitor numbers dropped dramatically. A nasty fire season can have similar impacts – especially in August when western Montana can look pretty apocalyptic. It’s off the beaten path and accessible only via two-lane highways, so it may be a challenge from a distribution standpoint.
All that being said, we don’t think Kalispell shows signs of slowing down when it comes to growth. The area is known for having a very supportive climate for businesses, excellent air service, and a small-town feel. If you’re considering Kalispell commercial real estate opportunities, contact Sterling CRE Advisors.