Watford City Commercial
For Sale
$1,300,000
2066 125th, Watford City, ND 58854
Commercial property in Watford City with shop and office space.
Property Size9,708 SF
Price / SF$133.91
Days on Market79
Property Features for 2066 125th
General Information
Standard status
Active
Size
9,708 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,394
Amenities
0.00
Building Details
Year Built
2016
Listing Agency:
eXp Realty
(701) 369-3949
Listed By:
Erik C Peterson · License #9328
Source:
Clearwaterproperties
Added: May 25
Changed: Aug 8
Last Checked: Aug 11 at 11:07AM
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 eXp Realty
Investment Insights
Based on property information with market context.
This commercial property is located in Watford City, North Dakota. Constructed in 2016, the property was recently renovated in 2024. The property is zoned for commercial use. It features a shop area of approximately 9,600 square feet and an office/living space of approximately 3,200 square feet. The shop area includes six overhead doors with drive-through bays. The property was updated in 2024, including a new shop floor.
Key Highlights
- Prime commercial location in Watford City, ND.
- Boasts a large +/-9,600 SQ FT shop area with 6 overhead doors and drive‑through bays.
- Recently renovated in 2024, including a brand new shop floor.
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
$48,084
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
3.70%
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%
$961,680
$961.7K
Cap Rate 7%
$686,914
$686.9K
Cap Rate 9%
$534,267
$534.3K
Market Conditions
NOI Build-Up for 9,708 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
$116.5K $12.00/SF
− Vacancy
−$42.5K −$4.38/SF
EGI
$74.0K $7.62/SF
− OpEx
−$25.9K −$2.67/SF
NOI
$48.1K $4.95/SF
Area
McKenzie County, ND
Vacancy
36.50%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
35.00%
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%
$961,680
Cap Rate 7%
$686,914
Cap Rate 9%
$534,267
Alternative Uses
Best Use
Flex RnD
$686.9K
$601.1K – $801.4K
NOI $48,084 @ 7.0% cap · market cap 3.70%
Second Best
Warehouse
$647.5K
$566.6K – $755.5K
NOI $45,327 @ 7.0% cap · market cap 3.49%
Theoretical Best
Office A
$2.31M
$2.02M – $2.69M
NOI $161,603 @ 7.0% cap · market cap 12.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
12
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 58854, ND
9,142
Population
4,941
Households
1.9
Avg Household Size
31
Median Age
24%
College-Educated
93%
High-School Grad
666.1 sq mi
ZIP Area
14
Density / Sq Mi
$88,234
Median Household Income
$61,278
Median Earnings
$1,212
Median Rent
$387,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Commercial property in Watford City with shop and office space.
Where is this flex space located?
The property is located at 2066 125th Watford City, ND.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Prime commercial location in Watford City, ND.; Boasts a large +/-9,600 SQ FT shop area with 6 overhead doors and drive‑through bays.; Recently renovated in 2024, including a brand new shop floor.
