2023 Q4
MARKET UPDATE
03 04 05 06 07 08 09 10 11 12 13 14 15 16
About Us Our Team
Market Update 2024 Outlook
Historical Market Data Retail & Office New Listings
Retail & Office Closed Listings
Retail & Office Report Industrial New & Closed Listings
Industrial Report Industrial Report Commercial Land New & Closed Listings
Business
New & Closed Listings
Client Partners Client Services
Acquisition & Disposition, Landlord Representation, Tenant Representation, Consulting & Valuation
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About Us Coldwell Banker Commercial CBS Our organization strategically combines a powerful national presence with the agility of a regional market innovator. Coldwell Banker Commercial CBS has the resources and insight to understand our local market and the expertise to convert this knowledge into tangible value for each client. Our professionals stand ready to help clients discover untapped Commercial Real Estate market opportunities and to deliver a range of services designed to add value to their businesses. Our professionals service a wealth of business categories, with clients representing established corporations to small businesses to individual investors.
www.cbcmontana.com
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OUR TEAM
GEORGE WARMER MANAGING PARTNER, CCIM, MBA
406.855.8946 george@cbcmontana.com
MIKE BRUSCHWEIN AGENT
406.697.6176 mike@cbcmontana.com
TODD SHERMAN AGENT
406.570.8961 todd@cbcmontana.com
BLAINE POPPLER PARTNER
406.671.0399 blaine@cbcmontana.com
SHAYLEE GREEN BROKER, CCIM
406.208.7723 shaylee@cbcmontana.com
BRUCE KNUDSEN AGENT
406.698.8636 bruce@cbcmontana.com
DAVID MITCHELL PARTNER, CCIM, SIOR, MBA
EMILY SPERRY
406.794.3404 d@cbcmontana.com
MARKETING SPECIALIST
406.656.2001 info@cbcmontana.com
MICHAEL SPEIDEL AGENT
406.601.9695 michael@cbcmontana.com
NATHAN MATELICH PARTNER, CCIM, MBA
406.781.6889 nathan@cbcmontana.com
ERIK CASERES AGENT
406.861.4742 erik@cbcmontana.com
Market Update
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2024 OUTLOOK The economic landscape in 2023 exhibited a promising recovery, with real GDP growth of 2.8% driven by robust job gains and a surge in construction spending for manufacturing facilities. Nonfarm payrolls grew by 232,000 jobs per month on average and the unemployment rate stayed below 4% for 22 consecutive months, a remarkable feat not seen in over 50 years (Source: BLS). Despite the challenges posed by higher interest rates, 2023 witnessed strength in the services sector and real wage growth as inflation subsided, leading to positive trends for workers and momentum in consumer attitudes. The outlook for 2024 according to the IMF suggests a slightly slower pace of expansion at 2.1%. This projection reflects various factors, including a potential slowdown in consumer spending, tight monetary conditions, and fluctuations in business investment and housing activity. Consumer spending is expected to decelerate due to diminished savings, plateauing wage gains, and emerging signs of stress in specific consumer segments. The CRE market in 2023 faced challenges stemming from a labor shortage, inflationary pressures, and the continuation of Federal Reserve Bank interest rate hikes. Higher interest rates triggered increased loan defaults, causing banks to write off credit losses and expect liquidity issues to continue over the next year. In an effort to contain further losses, banks pulled back on lending – with 3Q 2023 loan volume down 7% from 2Q 2023 and down 49% from a year ago (Source: Mortgage Bankers Association). These losses had widespread impacts, affecting every sector and investor type within the commercial real estate market.
READ MORE HERE
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Historical Market Data Yellowstone County Commercial Sales Transactions Q1, Q2, Q3 & Q4 of 2022 & 2023
Commercial Sales Transactions Year-Over-Year 140
600 576
567
129
120
500 100
95
420
400
80
300 272
277
271
296
81 57
235
68
66
60
$95.22
20 23
Q
4
20 22 4
Q
20 23
20 22 3
$11
Office
$16
Retail
$289.40
Retail
$20
*CBC Data
Q
20 23 2
Industrial
$130.15
100
Q
Q4 Average NNN Lease Rate by Type (Existing)
Office
0
Q
20 22 2
*Data provided by Chicago Title
Q4 Average Bldg Price Per SQFT by Type (Existing)
Industrial
20 23
Q
Q
1
20 17 20 18 20 19 20 20 20 21 20 22 20 23
20
20 14
20 13
*Data provided by Chicago Title
Q
0 20 22
0 16
20
20 15
100
3
40
192
1
200
324
317
94
88
200
300
0 *CBC Data
5
10
15
20
07
Retail & Office
2500 Grand Ave, Suite Q For Lease: $8/sf
Shaylee
NE W
NE W
NE W
2010 Grand Ave For Sale: $35,000
Shaylee
711 Central, Suite 24-34 For Lease: $1,355/mo
711 Central, Suite 215-216 For Lease: $2,433/mo
2950 King Ave, Suite 1 For Lease: $14-$18/sf
Michael & Nathan
1597 Ave D, Suite 6 For Lease: $1,560/mo + Utilities
Todd
NE W
NE W
Nathan
2108-2116 Broadwater, Suite 310 For Lease: $15.48/sf
Erik
NE W
1041 Main St For Sale: $1,780,000
27 Grand Ave For Sale: $393,000
Nathan
NE W
NE W
NE W
1844 Broadwater Ave, #5 For Lease: $1,500/mo
Todd
George
Shaylee
NE W
2331 Lewis Ave For Lease: $2,950/mo
Nathan
NE W
NE W
Nathan
1511 6th Ave N For Sale: $1,000,000
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Retail & Office Nathan
SO LD
SO LD
Shaylee
2331 Lewis Ave
Shaylee
711 Central Ave, Suite 222/223
1215 24th St W, Suite 200
Michael
Shaylee
1844 Broadwater Ave, Unit 6
711 Central Ave, Suite 225
Shaylee
Shaylee
711 Central Ave #110
LE AS ED
LE AS ED
1613 Alderson Ave
LE AS ED
Nathan & Todd
LE AS ED
LE AS ED
1629 Ave D, Suite A4/A6
David & Erik
LE AS ED
David & Erik
LE AS ED
LE AS ED
134 Grand Ave
711 Central Ave #111
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Retail & Office REPORT Class B Existing Average Office NNN Lease Rates (Under 3,000 SF) $20 PSF
$18.00
$25 PSF
$19.02 $15 PSF
$12.50
$10 PSF
$21.09
$20 PSF
$16.00
$15 PSF
$17.04
$18.79
$10 PSF
$8.50 $5 PSF
$0 PSF
Average NNN Retail Lease Rates
$5 PSF
2015
2019
2022
2023
*CBC Data
$0 PSF
2020
2021
2022
*CBC Data
New Construction Office/Retail $40 PSF
$35 PSF
$30 PSF
CAP RATE RANGE
$25 PSF
$20 PSF
$18 PSF
6% TO 8%
$10 PSF
$0 PSF
2020 *CBC Data
2022
2023
2023
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Industrial George
Todd
SO LD
SO LD
Todd
8122 Stillwater Dr, Unit 11A
5229 King Ave W, E3
Bruce
5229 King Ave W, C3
Todd
5229 King Ave W, F1
SO LD
223 Erie Dr, Unit 6
Bruce
David & Nathan
4151 1st Ave S For Sale: $4,500,000
SO LD
George
5857 & 5865 Kennison Pl For Lease: $8,285/mo + Utilities
LE AS ED
LE AS ED
204 S Washington Ave, C1, Laurel For Lease: $1,700/mo
711 Blackhawk St, B1
Nathan
NE W
NE W
Todd
823 E Mancave, Units 1-6 For Sale: $600,000
NE W
704 Wagon Trail W For Lease: $11.50/sf
LE AS ED
308 10th St W For Lease: $2,000/mo
George
NE W
NE W
NE W
Shaylee
348 Nall Ave
Shaylee & Todd
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Industrial REPORT Industrial NNN Lease Rates Under 5,000 SF (Yellowstone County)
Industrial Sales Under 5,000 SF (Yellowstone County New Construction)
$12 PSF
$200 PSF
$10 PSF
$10
$11 $150 PSF
$8 PSF
$6 PSF
$138
$7.35
$6.50
$155
$100 PSF
$4 PSF $50 PSF
$75
$2 PSF
$0 PSF
2016
2019
2022
$0 PSF
2023
*CBC Data
2020
2022
2023
*CBC Data
*$13 PSF in City Limits
Total Industrial Sales By Year (Yellowstone County) 200
CAP RATE RANGE
175 159
150
50
7% TO 9%
109
100
59
52
68
81
76
85
95
55
20 17 20 18 20 19 20 20 20 21 20 22 20 23
16
20
20 15
20 14
20 13
0
*Data provided by Chicago Title
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Industrial REPORT Total Industrial Sales Q1, Q2, Q3, & Q4 of 2022 & 2023 60
57 50
50
40
30
32
31
20
30
22 16
15
10
20 23
Q
4
20 22 4
Q
20 23
20 22 3
Q
3
20 23 2
Q
*Data provided by Chicago Title
Q
20 22 2
Q
20 23
1 Q
Q
1
20 22
0
Commercial Land
NE W
9026 Kautzman Rd For Sale: $3,168,514
Shopworld 406 Lots For Sale: $45,500 +/-
NE W
Erik
1613 E Railroad St For Lease: $1,000/mo
Shaylee & Todd
George
SO LD
NE W
Michael & Nathan
13
East Railroad St, Laurel
04 14
Business Nathan
NE W
NE W
Nathan
State Liquor Store For Sale: $8,170,000
Le Macaron For Sale: $110,000
Todd
NE W
NE W
Mike
Lawn Maintenance & Snow Removal Business For Sale: $749,000
Tree Service Business For Sale: $350,000
Todd
Two Bear Tavern, Fromberg For Sale: $399,000
NE W
NE W
Todd
2 Casinos For Sale: $799,000 (each)
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CLIENT
PARTNERS BANKS FIRST INTERSTATE BANK LITTLE HORN BANK OPPORTUNITY BANK STOCKMAN BANK U.S. BANK
VALLEY FEDERAL CREDIT UNION WELLS FARGO WESTERN SECURITY BANK YELLOWSTONE BANK
RETAIL ACE HARDWARE BEARTOOTH HARLEY DAVIDSON CRICKET WIRELESS DOLLAR GENERAL HARBOR FREIGHT
MENS WAREHOUSE RENT A CENTER SHOPKO STATE LIQUOR STORE TRACTOR SUPPLY CO.
RESTAURANTS ARBY'S CAFE RIO COCA COLA CRUMBL COOKIE JACK IN THE BOX JERSEY MIKE'S JIMMY JOHNS LITTLE CEASAR'S MAZEVO COFFEE
MCDONALD'S PAPA MURPHY'S PROOF DONUTS QDOBA STARBUCKS STEAK AND SHAKE SUBWAY TWISTED SUGAR DAIRY QUEEN CHEN’S EXPRESS
SERVICES ACOSTA AE2S ALL AMERICAN PHARMECEUTICAL ALLSTATE AR WORKSHOP AT&T AUTOZONE AXIOM LAW BARGREEN ELLINGSON BEAR MOUNTAIN ADI BLUE BEACON TRUCK WASH BONINI ENTERPRISES BOREALIS FUELS AND LOGISTICS BUGGY BATH CAR WASH CENTIMARK ROOFING CHICAGO TITLE CK TECH
EDWARD JONES EPIROC USA FAITHFUL DISASTER RESTORATION FASBREAK AUTOGLASS FEDERAL DEFENDERS OF MT FLYING S TITLE FORZA DEVELOPMENT HARDRIVES ASPHALT HOLIDAY/CIRCLE K KOMATSU MILLS ELECTRIC NEWMAN RESTORATION PENSKE TRUCK RENTAL PHILLIPS 66 PLANET FITNESS QUIKRETE
ROCKY MOUNTAIN VEIN CLINIC ROCKY VISTA UNIVERSITY ROTO ROOTER SECURITAS SHAMROCK FOODS SUMMER'S MCNEA AND CO. TETRA TECH ENGINEERING THRIVENT TKI INC TOWN PUMP TYLER TECHNOLOGIES VANROCK HOLDINGS VETERAN'S AFFAIRS WESTERN NATIVE VOICE YELLOWSTONE CHRISTIAN COLLEGE ZIMMER BIOMET
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CLIENT
SERVICES ACQUISITION & DISPOSITION BUYER REPRESENTATION SITE SEARCH BUILD TO SUIT LEASE/OWN ANALYSIS ACQUISITION LEASE AUDITS
SELLER REPRESENTATION LEASING SERVICES DISPOSITION LEASE ANALYSIS
LANDLORD REPRESENTATION PROPERTY POSITIONING / REPOSITIONING TENANT RETENTION TARGET MARKETING TO SUITABLE PROSPECTS LANDLORD MARKETING STRATEGIC PLANNING SERVICES NEGOTIATIONS LEASE ANALYSIS
TENANT REPRESENTATION STRATEGIC PLANNING SERVICES ACQUISITION OR DISPOSITION RELOCATION SERVICES LEASE/OWN/SALE LEASEBACK ANALYSIS NEGOTIATIONS LEASE ANALYSIS
LEASE ADMINISTRATION LEASE AUDIT BUILD TO SUIT/TENANT FIT UP CONSULTING APPRAISAL AND OTHER VALUATION SERVICES MARKET SURVEYS AND ANALYSIS SPACE PLANNING
LEASE ADMINISTRATION LEASE AUDIT BUILD TO SUIT/TENANT FIT UP CONSULTING APPRAISAL AND OTHER VALUATION SERVICES MARKET SURVEYS AND ANALYSIS DEMOGRAPHIC / DRIVE-TIME STUDIES SPACE PLANNING
CONSULTING & VALUATION OPINION OF VALUE INVESTMENT ANALYSIS FINANCIAL ANALYSIS MARKET RESEARCH LEASE ANALYSIS/RENEGOTIATION ADVISORY SERVICES BANK OWNED REO SERVICES 406.656.2001 info@cbcmontana.com 3135 Meadow View Dr., Billings, MT 59102