Missoula, Montana offers a unique opportunity for investors to capitalize on the city's growing retail market. With a diverse economy and a strong presence of healthcare, education, and tourism, Missoula provides a stable foundation for retail properties. Retail properties in Missoula can represent a range of investments, from small, independent shops to larger, multi-tenant complexes. The city's amenities, infrastructure, and location make it an attractive destination for businesses and residents alike. For example, the University of Montana and St. Patrick Hospital and Health Sciences Center are major employers in the area, and the city's downtown district is home to a variety of shops,restaurants, and cultural attractions. Additionally, Missoula's proximity to the Idaho border and its location at the convergence of five mountain ranges make it a hub for outdoor recreation and tourism. The city's scenic beauty, with nearby Mount Sentinel and Mount Jumbo, and its mild climate, with cold winters and hot summers, also contribute to its appeal. With over 4 million out-of-state visitors annually, Missoula is a great place for businesses to attract customers and for investors to see a strong return on their investment.
Missoula's retail market is characterized by a mix of local, independent businesses and national chains. The city's downtown area is home to a variety of unique shops and restaurants, while the surrounding neighborhoods offer a range of retail options, from grocery stores to big-box retailers. Nearby shopping centers, such as the Southgate Mall, provide additional retail opportunities. Restaurants in Missoula offer a range of cuisines, from fine dining to casual eateries, and office properties in the city are home to a variety of businesses, from healthcare providers to financial services firms. Hotels in Missoula cater to the city's tourism industry, with options ranging from budget-friendly motels to luxury resorts. With 13 retail properties currently available for sale, investors have a range of options to choose from in Missoula's retail market. The average price per square foot for retail properties in Missoula is $312 USD, with an average size of 9,767 square feet and a largest size of 28,512 square feet. The average cap rate for retail properties in Missoula is 5.89%. Overall, Missoula's retail market offers a unique combination of small-town charm and big-city amenities, making it an attractive destination for investors and businesses alike.
What is the average cap rate for retail properties in Missoula?
When it comes to retail properties in Missoula, investors can expect an average cap rate of 5.89%. To better understand the significance of this rate, it's essential to know what is a cap rate, which is a crucial metric in commercial real estate investing, as explained in our article at what is a cap rate.
How do location and foot traffic affect retail property values?
In Missoula, Montana, the location of a retail property plays a significant role in determining its value, with properties situated in high-traffic areas such as downtown Missoula or near the University of Montana tend to command higher prices due to their proximity to potential customers. For instance, a retail property with a high foot traffic count, such as those along Higgins Avenue or Broadway, can expect to see a higher value per square foot, with an average price per square foot of $312 USD and an average size of 9,767 square feet, resulting in a higher overall value.
