Industrial Shop with Rental
For Sale
$1,060,000
126 6th St W, West Fargo, ND 58078
A 12,000-square-foot shop in West Fargo with convenient access to Main Avenue and Interstate 94.
Property Size12,000 SF
Price / SF$88.33
Days on Market126
Property Features for 126 6th St W
General Information
Standard status
Active
Size
12,000 SF
Property subtype
Industrial - Manufacturing
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
12,000 SF
Year Built
2007
Units
1
Listing Agency:
Horizon Real Estate Group
(701) 793-0653
Listed By:
Brian Tulibaski · License #ND:9607
Source:
Commercialcafe
Added: Apr 9
Changed: Aug 8
Last Checked: Jul 23 at 11:25AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Horizon Real Estate Group
Investment Insights
Based on property information with market context.
Located at 126 6th Street West in West Fargo, this industrial shop provides 12,000 square feet of space with functional layout for industrial or service use. The building is configured to support an owner-user strategy, with the ability to occupy one half while renting the other half for additional income.
The property is just off Main Avenue and minutes from Interstate 94, providing connectivity throughout the Fargo MSA. It is surrounded by a mix of commercial and industrial users.
This offering is presented for sale and is suited to buyers seeking a practical live-in-a-part-and-lease-the-rest setup within an established industrial corridor.
The property is just off Main Avenue and minutes from Interstate 94, providing connectivity throughout the Fargo MSA. It is surrounded by a mix of commercial and industrial users.
This offering is presented for sale and is suited to buyers seeking a practical live-in-a-part-and-lease-the-rest setup within an established industrial corridor.
Key Highlights
- 12,000 SF shop in West Fargo, built in 2007
- Convenient access just off Main Avenue in West Fargo
- Minutes from Interstate 94 for easy regional connectivity
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$70,308
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.63%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,406,160
$1.4M
Cap Rate 7%
$1,004,400
$1.0M
Cap Rate 9%
$781,200
$781.2K
Market Conditions
NOI Build-Up for 12,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$108.0K $9.00/SF
− Vacancy
−$7.6K −$0.63/SF
EGI
$100.4K $8.37/SF
− OpEx
−$30.1K −$2.51/SF
NOI
$70.3K $5.86/SF
Area
Cass County, ND
Vacancy
7.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,406,160
Cap Rate 7%
$1,004,400
Cap Rate 9%
$781,200
Alternative Uses
Best Use
Industrial
$1.00M
$878.9K – $1.17M
NOI $70,308 @ 7.0% cap · market cap 6.63%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.22M
$1.94M – $2.59M
NOI $155,196 @ 7.0% cap · market cap 14.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
439
Businesses Nearby
Explore this area
Business Placement
Demographics for 58078, ND
39,161
Population
16,416
Households
2.4
Avg Household Size
34
Median Age
45%
College-Educated
97%
High-School Grad
39.8 sq mi
ZIP Area
984
Density / Sq Mi
$97,206
Median Household Income
$51,208
Median Earnings
$1,073
Median Rent
$303,200
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - A 12,000-square-foot shop in West Fargo with convenient access to Main Avenue and Interstate 94.
Where is this manufacturing property located?
The property is located at 126 6th St W West Fargo, ND.
What is the asking price?
The asking price for this property is $1,060,000.
What are key features of this property?
This property features: 12,000 SF shop in West Fargo, built in 2007; Convenient access just off Main Avenue in West Fargo; Minutes from Interstate 94 for easy regional connectivity
