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 ranging from established corporations to small businesses to individual investors.
America is captivated by the new Paramount network show “Yellowstone”. While we won’t suggest it is a primary driver of positive migration patterns into Montana, it does speak to many of the reasons Americans are choosing Montana; wide open spaces, outdoor activities, water, and yes, a healthy economy.
Net migration in Montana is occurring 3.3 times faster than pre-pandemic times. Of those moving in, 45% have a college education compared to only 30% 5 years ago. More than 22% of in-migrants are working from home compared to 2019. It is now estimated that Montana will double in size in 40 years versus the pre-pandemic estimate of 70 years. Net in-migration to Yellowstone County has more than doubled since 2019. Yellowstone County is particularly well positioned to take advantage of this trend due to a number of factors. First and foremost, Yellowstone County, and Billings specifically, offers a broad balanced economy anchored by its medical, industrial, distribution and agriculture sectors. Billings also has access to land for future growth and a reliable water supply.
SCL, recently acquired by Intermountain Health Care out of Utah, has quickly become the dominate player in regional l health care. Last year SCL/Intermountain sold land in its Shiloh development to Rocky Vista University for the construction of Montana’s first Medical School. This 150,000 SF building is now complete and sits adjacent to SCL’s new West End 65,000 SF clinic currently under construction. While impressive, these projects are dwarfed by SCL/Intermountain’s announcement to build a new $1 Billion dollar hospital downtown on their current parking lot. This project will take over four years to complete and will bring hundreds of contractors and professional service jobs to Billings.
Industrial demand for shop and warehouse space has been a quieter story. Over the past 5 years, shop/warehouse lease rates have more than doubled and the cost to build new industrial buildings has followed suit. Lease rates have risen from the $5 PSF NNN range to over $10 PSF NNN for newly constructed units. The purchase price has also increased from a low of $75 PSF just 5 years’ ago to over $150 PSF for shop space with indoor facilities.
The housing story in Billings presents a tug of war between interest rates and the lack of inventory. Over the past 30 years, inventory levels have hovered around 1,000 homes. Last spring Billings’ inventory shrunk to just 78 homes available on the market. Inventory has since pushed back up to 465 homes. However nearly 232 of these homes are under contract. Continued migration into the Yellowstone market along with the expansion of the medical and industrial sectors ensures a tighter housing market and stable to growing home values for the foreseeable future.
So, what lies ahead for Yellowstone County and Billings specifically? According to the BBER, they forecast a small contraction in Montana earnings for 2023 followed by positive growth in 2024, 2025 and 2026. BBER sees a similar contraction this year in Yellowstone County followed by stronger growth in consecutive years than the state as a whole. Forecasting can be a fool’s errand but Billings does appear well positioned for growth whatever the outcome of the greater Montana and US economies portends to be.
George Warmer, Managing Partner
FIRST INTERSTATE BANK
LITTLE HORN BANK
OPPORTUNITY BANK
STOCKMAN BANK
U S BANK
ACE HARDWARE
BEARTOOTH HARLEY DAVIDSON
CRICKET WIRELESS
DOLLAR GENERAL HARBOR FREIGHT
ARBY'S CAFE RIO
COCA COLA
CRUMBL COOKIE
JACK IN THE BOX
JERSEY MIKE'S
JIMMY JOHNS
LITTLE CEASAR'S MAZEVO COFFEE
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
VALLEY FEDERAL CREDIT UNION
WELLS FARGO
WESTERN SECURITY BANK
YELLOWSTONE BANK
MENS WAREHOUSE
RENT A CENTER
SHOPKO
STATE LIQUOR STORE
MCDONALD'S PAPA MURPHY'S PROOF DONUTS
QDOBA
STARBUCKS
STEAK AND SHAKE
SUBWAY
TWISTED SUGAR
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
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
OPINION OF VALUE INVESTMENT ANALYSIS
FINANCIAL ANALYSIS
MARKET RESEARCH
LEASE ANALYSIS/RENEGOTIATION
ADVISORY SERVICES
BANK OWNED REO SERVICES
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
