Bakken Boom Spreads to Montana

In 2009, real estate sales in Billings, Montana fell into the rut of the recession, and all of Yellowstone County suffered similarly.

Industrial warehouses remained empty and large plots of land sat waiting to be developed.

But Billings has a secret weapon that’s going to help it out: the Bakken formation.

The Bakken shale formation has been getting its fair share of attention lately, as its development is part of the natural gas boom sweeping the nation.

And this development is calling companies back to Eastern Montana.

NAI Business Properties, a company operating in Billings, Montana that deals with office and warehouse real estate deals, has seen business pick up in the past couple years.

Drew Smith of NAI told Billings Business:

“I think we’re going to start seeing—finally start seeing after a few years—some land development because we’re out of inventory for the new players who are coming to town.”

Because many existing offices and warehouses have filled up. And companies are looking for larger spaces than those available in Billings.

One company, NAI noted, was looking for up to 80,000 square feet of space. That type of location just doesn’t exist there. But the land for development sure does...

Some buyers are purchasing several chunks of undeveloped land in order to have enough space.

But they’re still being careful. As Smith said:

“They are not just throwing up any old building and going for the quick buck. They’re looking for long-term value.”

The builders don’t want to be left with a lot of empty buildings if companies clear out all at once, and banks are more cautious in their loans than before the recession. But once the weather heats up and development begins again, Billings could be a booming city once more.