Retail Center on 25th
For Sale
Contact for pricing
1326 25th St S, Fargo, ND
Fully occupied retail center in high-traffic Fargo location.
Property Size7,200 SF
Lot Size0.76 Acres
Price / SF$232.05
Days on Market405
Property Features for 1326 25th St S
General Information
Standard status
Active
Size
7,200 SF
Lot size
0.76 Acres
Property subtype
OFFICE
Listing Agency:
Horizon Real Estate Group
(701) 478-7600
Listed By:
Jace Engelstad · License #10937
(701) 261-8061
Source:
Moodyscre
Added: Aug 8, 2025
Changed: Sep 9
Last Checked: Sep 16 at 6:20PM
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.
This fully occupied retail center is situated in a high-traffic location along 25th Street. The property is surrounded by established retail businesses and growing residential neighborhoods. It presents an opportunity for a value-add investor or an owner-user restaurant operator. The seller offers flexible options, including continuing to operate the Subway currently on-site or vacating the premises for a new user. The property benefits from great visibility and access, with long-term growth potential. The building has a size of 7200 square feet and is located at 1326 25th St S in Fargo, ND. The property is suitable for shopping centers, retail properties, restaurants, and other similar businesses.
Key Highlights
- High‑traffic location on 25th Street
- Fully occupied retail center
- Surrounded by established retail and growing residential neighborhoods
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
$82,669
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
4.95%
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%
$1,653,380
$1.7M
Cap Rate 7%
$1,180,986
$1.2M
Cap Rate 9%
$918,544
$918.5K
Market Conditions
NOI Build-Up for 7,200 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
$116.6K $16.20/SF
− Vacancy
−$6.4K −$0.89/SF
EGI
$110.2K $15.31/SF
− OpEx
−$27.6K −$3.83/SF
NOI
$82.7K $11.48/SF
Area
Fargo, ND
Vacancy
5.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
25.00%
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%
$1,653,380
Cap Rate 7%
$1,180,986
Cap Rate 9%
$918,544
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.38M
NOI $82,669 @ 7.0% cap · market cap 4.95%
Second Best
Retail
$1.02M
$888.3K – $1.18M
NOI $71,064 @ 7.0% cap · market cap 4.25%
Theoretical Best
Office A
$1.56M
$1.37M – $1.82M
NOI $109,331 @ 7.0% cap · market cap 6.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,282
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Shopping center - Fully occupied retail center in high-traffic Fargo location.
Where is this shopping center located?
The property is located at 1326 25th St S Fargo, ND.
What is the asking price?
The asking price for this property is $1,670,761.
What are key features of this property?
This property features: High‑traffic location on 25th Street; Fully occupied retail center; Surrounded by established retail and growing residential neighborhoods
