FARGO COMMERCIAL REAL ESTATE INSIDER

Welcome to the Fargo Commercial Real Estate Insider, your trusted source for expert insights, market trends, and the latest opportunities in the Fargo-Moorhead commercial real estate market. Whether you’re a seasoned investor, a business owner, or simply interested in the local real estate market, this newsletter is crafted to keep you informed and positioned for success.

About Me

I am a seasoned real estate professional with over 25 years of investment experience. Residing in West Fargo, I live with my wife, Kate, and our four energetic sons: Brooks (7), Brody (4), Brock (3), and Briggs (1). Outside of real estate, my time is spent at NDSU sporting events, enjoying our lake cabin in Nevis, MN, coaching my sons’ sports teams, and teaching Sunday school at Hope Lutheran Church.

As a Commercial Realtor in Fargo, ND, licensed since 2017 in both North Dakota and Minnesota, I bring expertise and local market knowledge to every client relationship. Through this newsletter, my goal is to deliver valuable insights, offer practical guidance, and highlight opportunities that will help you achieve your real estate objectives.

Commercial Real Estate Market Insights

Multifamily Lending Gains Amid Shifts in Office Demand

Nationwide, commercial real estate (CRE) loan originations improved in 2024, with significant growth in the multifamily sector. In Q3, originations reached $4.4 billion, up from $3.9 billion in Q2. Multifamily loans surged 76% year-over-year, driven by pent-up demand and reduced financing costs. However, total originations remain 53% below pre-pandemic levels, reflecting ongoing market recalibration.

Office Market Faces Continued Challenges

The office sector, however, continues to struggle, experiencing the highest delinquency rates (7–8%) and charge-offs compared to other property types. Nationally, net charge-offs for office loans approach 3%, well above lodging (1%) and industrial (below 1%). Office-heavy markets like San Francisco, New York, and Washington, DC face particular difficulty, with high volumes of criticized loans.

Implications for Fargo-Moorhead

While national trends show uneven recovery, Fargo’s commercial real estate market remains steady and resilient. The region’s diversified and growing economy has helped mitigate office-related risks, while demand for multifamily and industrial spaces continues to rise. For local investors, these stable market conditions offer a reliable foundation for strategic investments, especially in high-performing sectors like multifamily.

Featured Listing

AmericInn Hotel Price: $3,295,000 Location: 777 U.S. Highway 10, Detroit Lakes, MN Details: 45 rooms, well-maintained property with a professional management team in place.

This turnkey investment opportunity in Detroit Lakes combines strong financial performance with a prime location. Perfect for seasoned investors looking to diversify or expand their portfolio, the AmericInn Hotel represents a high-value asset in a thriving market. Contact me for financial details and to schedule a tour.

Exclusive Off-Market Opportunity

32-Unit Value-Add Multifamily Apartment Building Location: Minnesota Lakes Country

This off-market property offers significant potential for investors seeking value-add opportunities. With room to increase rents and improve operational efficiencies, this multifamily asset provides a clear path to higher returns. Located in a desirable region with strong rental demand, it’s a rare find for discerning buyers. Reach out to learn more about this exclusive listing.

Client Wish List. Can you help?

My client is actively seeking:

• A 6,000–8,000 SF shop and office space in Fargo, ND.
• Must include 2–3 offices and a minimum 14’ overhead door.
• Aiming to close in the spring or summer of this year.

If you own or know of a property that meets these criteria, I’d love to hear from you. Let’s collaborate to find the perfect match and ensure a seamless transaction.

Ready to take the next step?

When you are ready, here’s how I can help you:

• Let’s Meet for Coffee Whether you’re exploring options or want market insights, let’s connect in person and discuss your goals. Schedule Here
• Join My Commercial Real Estate Mastermind For High Net Worth Individuals Gain exclusive access to expert strategies, valuable insights, and high-level connections tailored to accelerate the success of high-net-worth individuals Join Here
• Thinking about selling or leasing your commercial property? Let me provide a free and confidential valuation of your property to help you make informed decisions. Get Started Here
• Ready to grow your portfolio? Join my exclusive investor network and access off-market commercial real estate deals, joint ventures, partnerships, and more. Join Here

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

Together, we’ll turn your real estate vision into reality!