Business Development
Missoula is the second largest city in Montana with a city population of 78,500 residents. Missoula is a place where people want to live, work and play, and Downtown is one of the primary attractions. Investment in Downtown Missoula has been significant over the last 10 years with a slight uptick in commercial investment experienced in 2025.
Investment in commercial property in Downtown Missoula totaled nearly $22 million in 2025; about fifteen million more than in 2024. The largest projects included the Bank Street Parking Garage renovation, the Bridge Pizza renovation, the major renovation of the Creekside Apartments and garages, the DoubleTree Hotel renovation, and the development of the new LeVasseur Street condos. Smaller highlights include the buildout for Le Petit Outre at 529 S Higgins, Ascend Sports Medicine at 603 Woody, and the Bernice’s Bakery renovation. By far the largest investment for 2025 was the Missoula Parking Commission’s nearly $4 million investment into the Bank Street Parking Garage structure.
Residential investment declined significantly with just over $370,000 vested in 2025. The majority of projects completed on the residential side were reroofing projects with the occasional remodel throughout the year.
Business activity for 2025 was strong within the Downtown core. In 2025 Downtown Missoula saw 21 new business openings and 13 closings. Movement in the services industry was most prevalent this year with 11 service businesses opening their doors in 2025. Notable business openings included LeReve Salon, Ascend Sports Medicine, Clark Fork Prep High School, Serene Day Spa, Double K Ranch General Store and FMC Books. Notable business closings in 2025 included R.P. Ellis Fine Jewelry, HO+KO, Image Nation Brewing, Conflux Brewery, Marimint, 4B’s Restaurant, Pink Elephant, and Golden Yolk Griddle.
In 2025, there were 16 businesses that relocated to or expanded within Downtown. Highlights include Next Home Mountain Life moving into 350 Ryman Suite 201, Le Petit Outre relocating to 529 S Higgins, and the Missoula Makers Collective expanding into their own store at 112 W Front.
There were also four businesses that relocated or expanded out of Downtown Missoula in 2025. The major highlight in this category is the opening of a new Providence healthcare facility at 3017 Paxson adjacent to the Southgate Mall.
Three downtown businesses saw a change of ownership in 2025. Envoy Mortgage sold to Security National, Bravo Catering from independent ownership to the Ranch Club Barn and Hi-Noon Petroleum sold to Jacksons Food Stores headquartered out of Meridian, Idaho. There were also three businesses that changed their names, including Tres Bonne to Cafe Mimosa, Agate Salon to Well Kept Salon, and Sushi Hana to Hana.
Downtown Missoula remains a hot market for commercial and residential development with several projects moving forward in the coming years:
- The Riverfront Triangle property is under contract with Averill Hospitality to be developed into a 180 room, 15,000sq.ft. conference space, a new parking facility and the potential for riverfront condos along with a riverfront public plaza. For more details visit: engagemissoula.com/riverfront-hotel
- The Old Sawmill District continues to implement its master plan and will embark upon warehouse apartments following the completion of the townhomes.
- The former library site at 300 East Front Street will be a great opportunity for a mixed-used development project.
- The City of Missoula and Missoula County officially acquired the keys to the Federal Building in 2023 and hired a contractor to clean out the hazardous materials and renovate the building. When the newly-named John Engen Local Government Services building is ready for occupancy, many Downtown office spaces and buildings will be available for sale or leasing.
- Development of the former Missoulian building remains in the planning and investment stages.
- The former site of the Sleepy Inn is on the market and ready for development.
Commercial & Residential Investment (public & private) in Downtown Missoula 2020-2025:
| YEAR | COMMERCIAL INVESTMENT | RESIDENTIAL INVESTMENT | TRANSPORTATION INVESTMENT | HIGHLIGHTS |
| 2021 | $36 Million | $30 Million | $5 Million | Providence, First Interstate Bank, Radio Central, Trinity |
| 2022 | $12.5 Million | $7 Million | $1 Million | Holiday Inn, Boone & Crockett, Stockman Bank, Old Sawmill District Townhomes |
| 2023 | $11.2 Million | $912,000 | $2.3 Million | LOGE Camps, Providence, Northside Pedestrian Bridge |
| 2024 | $7 Million | $7.4 Million | $0 | Providence renovations, Loci Architecture, Dry Bar, Condo Buildout at Idaho & Inez |
| 2025 | $22.2 Million | $371,800 | $188,700 | DoubleTree Hotel renovations, Bridge Pizza, Creekside Apartments, Bank Street Parking Garage, LeVasseur Condos |
The pandemic, mortgage rates, property values, and the cost of goods and labor have all had an impact in development and investment in Downtown Missoula. However, there are many development projects on the horizon.
In 2023, the City of Missoula was awarded a $25-million-dollar Department of Transportation RAISE grant for five specific transportation projects in Downtown Missoula. This is the largest acquisition of public funding for Downtown Missoula in the last 50 years. Those projects include conversion of Front & Main to two-way streets, conversion of Higgins Avenue to a three-lane from Broadway to Brooks, new gateways to the riverfront parks, widening of the riverfront trail, and a new ADA ramp from the Beartracks Bridge to the waterfront trail.
For more information on business and investing in Downtown Missoula, please reach out to the Downtown Missoula Partnership staff via phone (406) 543-4238 or email ([email protected]).