Investment

Multifamily demand, both locally and nationally, continues to be extremely strong. Locally in 2019, NAI brokered a 21 unit, 27 unit and 100 unit sale, all to local investors with stabilized CAP rates ranging between 6.5 – 7.25% and 8.5 – 9.5% CAP rates in rural markets. Demand continues to outpace supply and more specifically, quality inventory in the 30+ unit sector.

Recent economic reports published by Green Street Advisors show that national apartment values have increased 3%, total, over the past three years, while apartments are trading at an average capitalization rate of 4.7% nationally, which is the lowest percentage in their
report (spanning back to 1986). Only the industrial and manufactured home property classes are trading at a lower CAP rate (4.6%). Green Street forecasts 2.1% growth in the apartment sector from 2019 to 2023 with risk adjusted expected returns at 5.9%. Based on these national
numbers, Billings apartment CAP rates are still very attractive to investors both locally and nationally.

About NAI Business Properties

NAI Business Properties is the premier commercial real estate firm in Montana providing expert services in Billings and throughout the State. Our services include acquisitions and dispositions, leasing, tenant representation, investment services, due diligence, and related consulting and advisory services. Our Montana Commercial Brokers specialize in Industrial, Office, Retail, Multifamily, investment properties, and 1031 Exchanges. Whether you're looking for Montana office space, industrial warehouses, retail outlets, or investment opportunities, we can help!