The office market in Gallatin County remains relatively steady, with current vacancy sitting at 8.3%. While that’s slightly elevated from historic lows, it hasn’t shifted drastically over the past few years.
Caution Slows New Development
Although several projects are in the planning stage, many are likely to be paused as economic uncertainty weighs on development decisions. Much like other asset types, office construction in Bozeman is being approached with caution, especially amid interest rate volatility.
Now Is the Time to Secure Tenants
For owners and investors, this is a critical moment to prioritize occupancy. With economic uncertainty keeping some tenants on the sidelines, properties that actively work to attract and retain users will be in a stronger position. Deals may require more flexibility—whether on rate, improvements, or concessions—but the cost of sitting idle is higher.
Tenants Are Trading Up
Periods of higher vacancy often present opportunity for tenants to upgrade—moving into more desirable locations or amenity-rich spaces. Many are favoring existing construction over new, thanks to lower rates and faster occupancy timelines. But that shift also highlights the growing divide between new build pricing and what many tenants are willing (or able) to pay. Navigating that pricing gap—especially when it comes to tenant improvement packages—is becoming more complex.
Management Matters
Responsive property management is a key differentiator in today’s office market. Owners who cut corners on maintenance or delay tenant requests often see it reflected in retention and rent roll. SterlingCRE’s affiliated management arm, SterlingCMG, can support office landlords with proactive operations and tenant satisfaction strategies that preserve asset value.
Real-Time Data for Real-Time Decisions
Understanding what’s happening in the Bozeman office market—what tenants are asking for, what’s leasing, and at what rate—is essential. SterlingCRE can provide the data, leasing guidance, and strategy to help owners make informed, confident decisions.
Watch the video below for the full breakdown, and connect with our team to keep your office portfolio performing.
