Missoula Retail Update Q3 2025
Jessica Baldwin
November 18, 2025
Missoula’s retail market is entering a new phase as tenants, owners, and investors recalibrate for 2026.
Stay informed with the latest trends, data, and expert insights on Montana’s commercial real estate market. SterlingCRE Advisors offers in-depth market reports, articles, and updates on key sectors including office, retail, industrial, self-storage and multifamily.
Missoula’s retail market is entering a new phase as tenants, owners, and investors recalibrate for 2026.
At SterlingCRE Advisors, we keep a close eye on the planning decisions shaping Missoula, especially those that impact how people use, develop, and value real estate. Right now, the City of Missoula is in the midst of a major zoning code rewrite that every property owner should be watching closely.
Montana’s new property tax reform was meant to bring clarity and relief after several volatile assessment cycles. Instead, a late-session drafting mistake has added new uncertainty, particularly for multifamily property owners. As reported by the Missoulian, an error in the final version of the 2025 tax legislation unintentionally raised the
SterlingCRE’s Missoula Multifamily Report (Q3 2025) distills what matters most: from development pipeline trends to the early effects of zoning reform and property tax changes — all backed by verified, local data.
When it comes to finding or expanding into commercial space, the options go well beyond the usual “buy a building” or “sign a lease.” Business owners often overlook flexible strategies that can free up capital, improve cash flow, or help secure the right property when the market is tight. Here
Your quarterly briefing on workforce, development, and commercial real estate trends across Montana, built for business owners, investors, and community leaders.
The Missoula Industrial Market Update provides essential data and strategic insights, empowering you to make confident, informed decisions.
Montana’s retail market in 2025 is marked by strong tenant demand, but also significant headwinds that continue to shape deal flow. Both national and local retailers are eager to enter Montana or expand their footprint in the state. Yet, the number of transactions remains constrained by cost pressures and limited
Montana’s self-storage market is reflecting many of the same trends playing out nationwide. Capital market conditions and the 10-year Treasury rate have significantly influenced what buyers can pay for investment opportunities. The spread between cap rates and borrowing costs has become highly sensitive, making the pricing environment far different from
Missoula’s industrial real estate market is shifting after several years of unprecedented tightness. The vacancy rate has climbed to over 6% and is still rising, up from the 3-4% range seen between 2020 and 2023. The increase is driven by over 275,000 square feet of new and existing inventory hitting
This guest article was contributed by Dakota Business Lending. We’re pleased to share their expertise on SBA 504 financing as part of our ongoing effort to provide useful insights to Montana’s business and property owners. The information reflects DBL’s deep experience in this space and is shared here for informational
Make no mistake—there are a lot of vacant multifamily units in the Bozeman market right now. But it’s important to understand the source of that vacancy. When it’s driven by new supply, it can be worked through over time. If it’s due to a lack of demand, that’s a much
Our latest Bozeman Industrial Market Update offers essential insights into what’s driving demand across Gallatin County. Whether you’re an investor, owner-occupier, or tenant, this report will help you plan your next move with confidence.
With vacancy sitting at 8.3%, Bozeman’s office market offers a rare opening for tenants. For businesses looking to upgrade, relocate, or open their first office, there are more options on the table than we’ve seen in recent years—including hard-to-find downtown space. More Choices, Including Downtown Historically, finding office space in
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
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,
Bozeman’s retail sector continues to lead the local commercial real estate market. With a vacancy rate of just 2.65% over the past 12 months, retail space is extremely limited—and that tight supply is expected to persist in the near term, despite a pipeline of new projects. Rents Rising With Construction
Bozeman’s multifamily market is seeing a significant shift. As of Q1 2025, the vacancy rate has climbed to 12.5%, and that figure is expected to rise. Multiple large-scale projects are set to deliver in the second and third quarters of this year, adding more inventory to an already softening market.
Recently, the U.S. federal government—including Congress, the Senate, and the President—passed the “Big Beautiful Bill.” This bill includes important provisions for commercial real estate (CRE) investors. Within the bill are significant renewals and expansions of two powerful incentives: The Opportunity Zone Program has been extended and modified. 100% Federal Bonus
There are a few things in life less fun than paying property taxes. Add a brand-new tax rate calculation system and reassessment, and now it’s even more confusing. Welcome to 2025 in Montana. At SterlingCRE Advisors, we’ve been tracking the upcoming changes. We’ve reviewed the legislation and spoken with local
Our latest Missoula Industrial Market Update provides essential data and strategic insights, empowering you to make confident, informed decisions.
SterlingCRE’s Missoula Multifamily Report (Q3 2025) distills what matters most: from development pipeline trends to the early effects of zoning reform and property tax changes.