FARGO COMMERCIAL REAL ESTATE INSIDER

Your trusted source for expert insights, market trends, and the latest opportunities in the Fargo commercial real estate market. Whether you’re a seasoned investor, a business owner, or simply interested in the Fargo commercial real estate market, this newsletter is crafted to keep you informed and positioned for success.

EXCLUSIVE OFF MARKET PROPERTY

Here's an off market deal I'd like you to know about:

46 Unit Value-Add Multifamily Opportunity – Minnesota Lakes Country

• Three buildings totaling 46 units in a desirable lake country setting.
• 16 units offer an office-to-apartment conversion opportunity, allowing for increased residential capacity.
• Tax credits available to support conversion and redevelopment costs.
• Rents have not increased since 2019, presenting immediate upside potential through rent adjustments.

Interested in learning more?

Contact me directly for details!

FEATURED LISTING - HILLSBORO, ND OFFICE BUILDING

• Historic Charm with Modern Renovations – This beautifully renovated historic building offers a blend of classic architecture and contemporary amenities, providing a unique and inviting atmosphere for businesses.
• Spacious and Functional Layout – The property encompasses 4,680 square feet, featuring five office spaces, three restrooms, two kitchens, and a conference room, making it ideal for professional office use.
• Prime Downtown Location – Situated in the heart of downtown Hillsboro, this property offers excellent visibility and accessibility, making it an ideal spot for businesses seeking a central location.
• Perfect for Professionals – With its well-designed office spaces, this property is an excellent fit for an insurance agent, attorney, or financial advisor looking for a professional setting to serve clients.

View Property Details

JUST SOLD: NOTABLE COMMERCIAL REAL ESTATE SALE

Here's a recent Fargo commercial real estate transaction you need to know about:

Property Type: Two Shop Condos

Address: 9740 42nd Street South, Fargo, ND

Sale Price: $981,120

Recording Date: January 31, 2025

Sold By: S & H Investments LLC

Purchased By: GDO Investments LLC

There are 24 other notable Fargo commercial real estate sales that recently closed, which you may not be aware of.

Interested in a comprehensive list of Fargo commercial real estate sales data?

Contact me for more details!

COMMERCIAL REAL ESTATE NEWS

Jamie Dimon: Work From Home is Done

“Don’t give me this s*** that work from home Fridays works."

In a notable stance that is echoing across corporate America, JPMorgan Chase CEO Jamie Dimon recently dismissed the idea that remote work—particularly remote work on Fridays—is a sustainable model for productivity and corporate success. Dimon, known for his straightforward leadership approach, stated, “Don’t give me this s*** that work from home Fridays work.” Dimon has been vocal about his skepticism regarding remote work, previously stating, “It doesn’t work for those who want to hustle,” emphasizing his belief that in-person collaboration drives performance and innovation. He further reinforced his stance by noting, “I am about hard work, I am about getting stuff done.”

Dimon’s message to his team was clear: “There is no chance that I will leave it up to managers. Zero chance. The abuse that took place is extraordinary,” he told staffers, making it evident that flexible work policies led to unsatisfactory outcomes at the bank. He further stressed that employees unhappy with his return-to-office mandate are welcome to seek employment elsewhere on Wall Street.

Another driving force behind Dimon's push for in-office work is JPMorgan Chase’s new $3 billion, 60-story headquarters at 270 Park Avenue in New York City. Set to become a landmark corporate hub, the facility will offer employees amenities like a yoga studio, a food court, and an Irish pub—highlighting the bank’s investment in creating a workplace that fosters both productivity and employee satisfaction.

His comments reflect growing resistance from major employers regarding long-term remote work arrangements, signaling a broader shift back toward in-office work.

This renewed emphasis on physical office presence is a critical development for the U.S. office real estate sector, including right here in Fargo, North Dakota. Large corporations like JPMorgan Chase often set the pace for workplace policies, and their decisions tend to ripple across the business ecosystem. When industry leaders mandate a return to the office, it creates a precedent that smaller and mid-sized businesses frequently follow. These smaller companies often view the actions of major employers as a benchmark for operational best practices. Additionally, as large corporations bring their teams back to physical offices, it can influence local suppliers, service providers, and other regional businesses to do the same, further reinforcing the back-to-office trend.

As more national and regional employers reevaluate their remote work policies, the demand for modern, functional office spaces in Fargo and across North Dakota is expected to evolve—creating significant opportunities for commercial property owners, real estate investors, and business tenants. Companies are seeking well-located office buildings featuring flexible layouts, high-speed connectivity, collaborative work areas, and premium amenities to meet employee expectations. This transition is driving a shift toward updated, tech-enabled office environments that support productivity, well-being, and long-term business growth in the Fargo commercial real estate market.

FARGO AREA ESTIMATED MULTIFAMLY VACANCY RATES

The latest data as of September 30, 2024, shows a notable increase in multifamily vacancy rates in both Fargo and West Fargo, while Moorhead experienced a slight decline. This data is greatly influenced by the timing of new units coming online, which can cause temporary spikes in vacancy as the market absorbs additional supply.

Fargo: 6.81% (up from 5.40% in 2023)

West Fargo: 7.01% (up from 4.50% in 2023)

Moorhead: 6.26% (down from 6.50% in 2023)

What Does This Mean for You? The rise in vacancies across Fargo and West Fargo suggests that supply is beginning to outpace demand in some segments of the rental market. This may be a result of increased new construction, tenants seeking more affordable housing options, or broader economic pressures impacting renters.

For property owners, this could mean more competition for tenants, longer lease-up times, and the potential need to offer incentives or reduce rents. Investors should factor this softening in when evaluating new acquisitions or development projects.

ECONOMIC INDICATORS

Understanding the latest economic indicators is essential for navigating Fargo commercial real estate investments. These key metrics impact investment properties in Fargo and across North Dakota and Minnesota. Staying up to date with key economic data is critical to understanding market conditions and making informed commercial real estate investment decisions. I analyze these indicators daily to provide my clients with clear, actionable insights backed by real data:

Secured Overnight Financing Rate (SOFR): 4.35%

Last Week: 4.34%

View Current Rate

U.S. 10 Year Treasury: 4.48%

Last Week: 10.54%

View Current Yield

25-Year Effective Rate for SBA 504 Loans: 6.29%

Last Week: 6.29%

View Current Rate

U.S. Unemployment Rate: 4.0%

Last Month: 4.0%

View Current Rate

Consumer Price Index: 317.67

Last Month: 315.61

View Current Index

Producer Price Index: 147.72

Last Month: 147.13

View Current Index

MY CLIENT WISH LIST. CAN YOU HELP?

My valued client is actively seeking the following Commercial Real Estate:

• Property Type: Space for a Daycare
• Size Requirement: 5,000 to 10,000 square feet
• Location Preference: Moorhead, MN
• Note: My client would prefer to purchase, but is also open to leasing

Have what I'm looking for? Send me a message

FARGO COMMERCIAL REAL ESTATE FOR SALE OR LEASE

Explore the latest Fargo commercial real estate listings, including office space, retail, industrial properties, multifamily investments, and development land for sale or lease. Whether you're a business owner seeking a prime Fargo location or an investor targeting top properties in North Dakota and Minnesota, these listings highlight the best opportunities.

There are 19 new listings within the last week:

Fargo Commercial Real Estate for Sale: View Properties

Fargo Commercial Properties For Lease: View Properties

COMMODITY PRICES

Commodity price fluctuations can influence the cost of construction, development, and overall commercial real estate operations. I closely track these changes to better understand their potential impact and provide my clients with strategic guidance. Here’s a look at the latest commodity prices:

Lumber per MBF: $618.02

Last week: $605.06

View Current Price

Copper per Lb.: $4.60

Last Week: $4.72

View Current Price

Wheat per Bushel: $5.90

Last Week: $5.72

View Current Price

Corn per Bushel: $4.98

Last Week: $4.90

View Current Price

Soybeans per Bushel: $10.46

Last Week: $10.31

View Current Price

Live Cattle per CWT: $197.76

Last Week: $199.08

View Current Price

Crude Oil per Barrel: $71.83

Last Week: $70.65

View Current Price

Ready to take the next step? When you are ready, there are four ways I can help:

1. Let’s Meet for Coffee

Whether you’re exploring options or seeking market insights, let’s meet and discuss your goals. SCHEDULE HERE

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SIGN UP HERE for access to off-market commercial real estate deals, joint ventures, partnerships, and more.

Explore these opportunities and more at my website: www.FargoCommercialRealtor.com

ABOUT ME

I’m a seasoned commercial real estate agent in Fargo, ND, with over 25 years of real estate investment experience, helping clients navigate commercial real estate opportunities in North Dakota and Minnesota. Residing in West Fargo with my wife, Kate, and our four energetic sons—Brooks (7), Brody (4), Brock (3), and Briggs (1)—I balance my professional life with family, faith, and community involvement.

Outside of real estate, I stay busy attending NDSU sporting events, spending time at our lake cabin in Nevis, MN, coaching my sons' sports teams, chauffeuring them to their many activities, and teaching Sunday school at Hope Lutheran Church.

As a Fargo resident for over 30 years, I have deep local knowledge and strong industry connections, allowing me to provide valuable real estate insights and investment opportunities. My approach is built on trust, client relationships, and a commitment to maximizing value for investors, business owners, and developers.

Have a nice weekend!