Downtown Missoula Attracts $14M in Investments, 26 New Businesses & 19 More that Expanded or Relocated in 2024
DOWNTOWN MISSOULA ATTRACTS $14M IN INVESTMENTS,
26 NEW BUSINESSES & 19 MORE THAT EXPANDED OR RELOCATED IN 2024
Downtown Missoula had a good year of commercial and residential investment, as well as business attraction and business expansion in 2024, despite the challenges related to workforce, cost of goods, and interest rates.
Commercial investment for 2024 landed at $7,005,642, according to the City of Missoula permit reports. The largest investments happened at Providence St. Pat’s, where four specific projects amounted to just over $4.8 million dollars. Projects included oncology and radiation upgrades, elevator upgrades, medical laboratory renovations, and new roof terraces at the Providence Center on North Orange Street. Other significant commercial investments include interior renovations for three law firms: Parson, Behle & Latimer (127 E. Main); Halloway Hulling Law (255 W. Front); and Boone Karlberg (300 W. Main).
In 2024, 26 new businesses opened their doors in Downtown Missoula. Six retail stores, six food & beverage businesses, and 12 professional service businesses commenced operation in 2024. Highlights include Ritual Yoga, The Stables Restaurant, Montana Gift Corral, Drybar, Modern Pastime, The Grotto and Yellowstone Gallery. Downtown also saw the opening of a new hotel, as LOGE Camps purchased and renovated the former Mountain Valley Inn on West Broadway. With a 2-to-1 ratio of openings to closings in 2024, nine businesses shuttered in 2024, including Aporta, Clover, Harlow, Sage Accessories, Ducrey Chocolate, and Scotty’s Table.
Business expansion was also strong in 2024, as 19 businesses expanded their footprints or moved to a larger location in Downtown. Highlights include Compass Barbershop, Windfall, Clyde Coffee at the Library, Missoula Makers Collective, and Crowley Fleck Law Firm.
“Generally, businesses had a decent year in 2024, although many have reported sales were down between 3-6% from the previous year,” said Charlie Beaton, President of the Downtown Business Improvement District Board and owner of Big Dipper Ice Cream. “Tourism season was pretty steady last year, and major events such as the Missoula Marathon, Grizzly Football, UM concerts at Washington-Grizzly Stadium, and Logjam events were quite impactful!”
“That said, finding workforce, let alone suitable workforce for specific positions, continues to be a challenge for our Missoula businesses,” said Christine Littig, Business Development Director at the Missoula Economic Partnership. “Despite the difficult challenges related to workforce, cost of goods, and penciling projects, there is still a significant amount of interest in Downtown Missoula. Additionally, there are several community businesses looking to expand their footprint into Downtown Missoula.”
Four Downtown businesses saw a change of ownership in 2024. Partners Creative was sold to Deloitte. Pathlabs was sold to MiQ; Eclipse Engineering was sold to Cushing Terrell, and Dobi’s Teriyaki has a new independent owner.
On the housing side of the equation, Downtown Missoula saw just over $7 million dollars in residential investment. While most of the projects were roofing, the largest project is 15 residential units being built at the corner of Idaho & Inez. Additionally, there are six townhomes being built on the 1200 block of Idaho, which amounts to just 21 new units in Downtown for 2024.
“Housing continues to be a challenge for our community and our state,” said Beaton. “Businesses are struggling to hire folks from out of area because there just isn’t enough housing stock at price points people can get into! Thankfully, we have really smart people working hard to build more housing.”
Two major development projects that are anticipated to bring a significant number of housing units to Downtown Missoula include the old library block at 300 E. Main and the former Missoulian building at 500 S. Higgins. However, these projects have been delayed due to high interest rates and the cost of building supplies and labor.
Despite the delays, there continues to be interest in both business and residential expansion in Downtown Missoula, and 2025 is off to a good start with several businesses working on expansions or relocations.
For more information on Downtown Missoula business growth and development, contact Linda McCarthy, Executive Director of the Downtown Missoula Partnership via phone (406-543-4238) or email ([email protected]).