Missoula, MT

Hi,

We wanted to share some key insights from our recent market dive into Missoula, Montana. Despite its smaller population, Missoula presents unique opportunities worth considering. Here are some highlights:

Market Overview

• Population & Inventory: Missoula, the second-largest city in Montana, has fewer than 100,000 residents. With only 29 target buildings (45,000-300,000 sq. ft.), the industrial market is limited but notable.

• Population Growth: From 2018 to 2023, Missoula's population grew by 5%, outpacing the national average.

• Employment: Industrial employment increased by 1,000 jobs from 2018 to 2023, contributing to a strong employment growth rate.

• Occupancy: Current industrial occupancy stands at 97%, significantly higher than the 10-year average of 90%.

Economic Factors

• Income Growth: Median household income rose by 26.7% over the past five years, from $57,000 to $72,000.

• Rent Growth: Rents have increased by nearly 25% over the same period, despite limited new construction

Key Insights

• Industrial Market: With less than 4 million sq. ft. of industrial space, new construction is essential to meet demand.

• Top Employers: The economy is driven by healthcare, education, and natural resources, with major employers including hospitals and the University of Montana.

• Affordability Challenges: Missoula faces rising home prices, making affordability a concern for long-term growth.

Conclusion

While Missoula's industrial market is small, the high occupancy rates and strong economic indicators suggest potential for valuable investment opportunities.

Please share your comments and let us know if you have any questions.