In Gallatin Valley, industrial vacancy is holding steady at around 7%, a level that reflects a relatively healthy market amid ongoing economic uncertainty. The vacancy rate has remained stable in part because many of the new industrial projects over the past two years have been smaller condo-style units. In contrast, larger warehouse spaces, typically over 10,000 square feet and built with steel frames, remain in short supply.
Higher interest rates and escalating construction costs have cooled speculative development. Yet, Bozeman still sees consistent demand, especially from users needing smaller spaces. Those in the market for sub-10,000 square foot units will find more options today than just a couple of years ago. Lease rates have ticked down slightly, from around $18/SF to closer to $16–17/SF, giving tenants a bit more negotiating room.
For larger users seeking outdoor storage, warehouse functionality, or three-phase power, inventory is tighter. SterlingCRE Advisors has successfully represented several clients in this space and remains the go-to resource for tailored industrial solutions across Bozeman, Belgrade, and Four Corners.
Investors eyeing Bozeman industrial properties should evaluate lease terms closely. Are current lease rates reflective of market trends? Is the location positioned near major corridors like I-90 or key employment hubs? Properties that check those boxes will be easier to lease and retain tenants over time.
Want more on industrial trends in Gallatin County? Watch the video below and reach out to SterlingCRE Advisors for the data you need to make a confident decision.
