Single-Tenant Office
For Sale
Contact for pricing
4445 23RD AVE S, Fargo, ND 58104
Built in 2021 and leased to Northwestern Mutual under a true NNN structure.
Property Size14,318 SF
Price / SF$342.23
Days on Market17
Property Features for 4445 23RD AVE S
General Information
Standard status
Active
Size
14,318 SF
Class
A
Total Parking Spaces
73
Property subtype
Office
Zoning
Commercial
Occupancy
100%
Lease Type
NNN
Net Operating Income
$296,383
Building Details
Year Built
2021
Buildings
1
Units
1
Tenancy
Single
Listing Agency:
Herd Realty
(701) 239-5810
Listed By:
Tony Paul · License #ND 8624
Source:
Crexi
Added: Jul 27
Changed: Aug 5
Last Checked: Aug 11 at 3:47PM
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 Herd Realty
Investment Insights
Based on property information with market context.
Located at 4445 23RD AVE S in Fargo, ND, this 14,318-square-foot office building was completed in 2021. The property is configured for a single occupant and leased to Northwestern Mutual under a true NNN lease, with 10 years remaining on the term. Commercial zoning is in place for the property.
Key Highlights
- 14,318‑square‑foot office building completed in 2021
- Single‑tenant occupancy by Northwestern Mutual
- True NNN lease structure
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
$167,778
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
3.42%
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%
$3,355,560
$3.4M
Cap Rate 7%
$2,396,829
$2.4M
Cap Rate 9%
$1,864,200
$1.9M
Market Conditions
NOI Build-Up for 14,318 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
$266.3K $18.60/SF
− Vacancy
−$42.6K −$2.98/SF
EGI
$223.7K $15.62/SF
− OpEx
−$55.9K −$3.91/SF
NOI
$167.8K $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%
$3,355,560
Cap Rate 7%
$2,396,829
Cap Rate 9%
$1,864,200
Alternative Uses
Best Use
Office B
$2.40M
$2.10M – $2.80M
NOI $167,778 @ 7.0% cap · market cap 3.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.11M
$2.72M – $3.62M
NOI $217,416 @ 7.0% cap · market cap 4.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
424
Businesses Nearby
Explore this area
Business Placement
Demographics for 58104, ND
48,150
Population
21,847
Households
2.2
Avg Household Size
32
Median Age
49%
College-Educated
98%
High-School Grad
28.0 sq mi
ZIP Area
1,720
Density / Sq Mi
$85,014
Median Household Income
$51,148
Median Earnings
$1,087
Median Rent
$346,100
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?
Office building - Built in 2021 and leased to Northwestern Mutual under a true NNN structure.
Where is this office building located?
The property is located at 4445 23RD AVE S Fargo, ND.
What is the asking price?
The asking price for this property is $4,900,000.
What are key features of this property?
This property features: 14,318‑square‑foot office building completed in 2021; Single‑tenant occupancy by Northwestern Mutual; True NNN lease structure
