Versatile Commercial Building in
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2501 12th Street N, Fargo, ND 58102
5,000 sq. ft. commercial building in North Fargo.
Property Size5,000 SF
Price / SF$155
Days on Market173
Property Features for 2501 12th Street N
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Special Purpose
Listing Agency:
CENTURY 21 FM Realty
Listed By:
John Colvin · License #ND
Source:
Crexi
Added: Feb 19
Changed: Aug 8
Last Checked: Aug 10 at 9:23AM
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 CENTURY 21 FM Realty
Investment Insights
Based on property information with market context.
This 5,000 sq. ft. commercial building is located in North Fargo, near the airport and North Dakota State University. The property features a blend of professional office space and functional warehouse/shop space. The front portion includes six private offices, suitable for administrative teams, client meetings, or collaborative workspace, with space for reception and conference areas. The rear of the building offers approximately 2,000 sq. ft. of warehouse/shop space, suitable for storage, light manufacturing, service operations, or distribution. This property is a fit for contractors, technology firms, trade services, logistics companies, or growing local businesses. The location provides accessibility for employees, clients, and vendors, with easy access to major roadways in a commercial corridor. This property is positioned to support business growth in North Fargo's business district.
Key Highlights
- Prime location in highly desirable North Fargo, near the airport and NDSU.
- Versatile 5,000 sq. ft. building suitable for office and warehouse/shop use.
- Features six private offices, reception, and conference areas.
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
$58,590
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
7.56%
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%
$1,171,800
$1.2M
Cap Rate 7%
$837,000
$837.0K
Cap Rate 9%
$651,000
$651.0K
Market Conditions
NOI Build-Up for 5,000 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
$93.0K $18.60/SF
− Vacancy
−$14.9K −$2.98/SF
EGI
$78.1K $15.62/SF
− OpEx
−$19.5K −$3.91/SF
NOI
$58.6K $11.72/SF
Area
Fargo, ND
Vacancy
16.00%
Lease Rate
$18.60 /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%
$1,171,800
Cap Rate 7%
$837,000
Cap Rate 9%
$651,000
Alternative Uses
Best Use
Office B
$837.0K
$732.4K – $976.5K
NOI $58,590 @ 7.0% cap · market cap 7.56%
Second Best
Warehouse
$629.5K
$550.8K – $734.4K
NOI $44,064 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$1.08M
$949.1K – $1.27M
NOI $75,924 @ 7.0% cap · market cap 9.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,986
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 58102, ND
30,767
Population
16,757
Households
1.8
Avg Household Size
32
Median Age
45%
College-Educated
95%
High-School Grad
31.6 sq mi
ZIP Area
974
Density / Sq Mi
$56,028
Median Household Income
$31,939
Median Earnings
$829
Median Rent
$235,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 5,000 sq. ft. commercial building in North Fargo.
Where is this flex space located?
The property is located at 2501 12th Street N Fargo, ND.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: Prime location in highly desirable North Fargo, near the airport and NDSU.; Versatile 5,000 sq. ft. building suitable for office and warehouse/shop use.; Features **six private offices, reception, and conference areas.**
