Flex Retail and Office
For Sale
Contact for pricing
612 23rd Street S, Fargo, ND 58103
Own a turnkey prep kitchen with retail, office, and customer/storage space plus on-site parking.
Property Size2,228 SF
Price / SF$163.82
Days on Market62
Property Features for 612 23rd Street S
General Information
Standard status
Active
Size
2,228 SF
Property subtype
Retail, Office
Zoning
Commercial
Investment Type
Owner/User
Building Details
Year Built
1971
Listing Agency:
Goldmark Commercial Real Estate Inc
(701) 566-1052
Listed By:
Brett Saladin, CCIM · License #10761
Source:
Crexi
Added: Jun 11
Changed: Aug 8
Last Checked: Aug 10 at 5:50AM
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 Goldmark Commercial Real Estate Inc
Investment Insights
Based on property information with market context.
This property is configured to support a prep kitchen while remaining flexible for retail or office use. The space includes a dedicated kitchen area with stainless steel sinks, a dishwasher, and a large walk-in cooler included with the sale. In addition to the kitchen, there is a retail area, an office, and a room designed for guests or customers. Two restrooms are available, along with ample storage space to support day-to-day operations.
The property includes on-site parking for both customers and employees, supporting convenient access for business operations that require regular customer traffic.
For buyers looking for an operating kitchen setup, the included equipment and prep layout can reduce initial buildout requirements. The same footprint also supports conversion to retail or office use, giving users flexibility if their concept changes. With built-in restroom capacity and practical storage, the space can accommodate teams and inventory without requiring major structural additions based on the listed improvements.
The property includes on-site parking for both customers and employees, supporting convenient access for business operations that require regular customer traffic.
For buyers looking for an operating kitchen setup, the included equipment and prep layout can reduce initial buildout requirements. The same footprint also supports conversion to retail or office use, giving users flexibility if their concept changes. With built-in restroom capacity and practical storage, the space can accommodate teams and inventory without requiring major structural additions based on the listed improvements.
Key Highlights
- Year built 1971
- Includes prep kitchen space with stainless steel sinks, dishwasher, and a large walk‑in cooler (included in sale)
- Layout features retail area, office space, and room for guests/customers
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
$26,108
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
7.15%
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%
$522,160
$522.2K
Cap Rate 7%
$372,971
$373.0K
Cap Rate 9%
$290,089
$290.1K
Market Conditions
NOI Build-Up for 2,228 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
$41.4K $18.60/SF
− Vacancy
−$6.6K −$2.98/SF
EGI
$34.8K $15.62/SF
− OpEx
−$8.7K −$3.91/SF
NOI
$26.1K $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%
$522,160
Cap Rate 7%
$372,971
Cap Rate 9%
$290,089
Alternative Uses
Best Use
Office B
$373.0K
$326.4K – $435.1K
NOI $26,108 @ 7.0% cap · market cap 7.15%
Second Best
Specialty Retail
$365.4K
$319.8K – $426.4K
NOI $25,581 @ 7.0% cap · market cap 7.01%
Theoretical Best
Office A
$483.3K
$422.9K – $563.9K
NOI $33,832 @ 7.0% cap · market cap 9.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,638
Businesses Nearby
Explore this area
Business Placement
Demographics for 58103, ND
46,754
Population
25,241
Households
1.9
Avg Household Size
36
Median Age
37%
College-Educated
93%
High-School Grad
11.5 sq mi
ZIP Area
4,066
Density / Sq Mi
$57,699
Median Household Income
$38,241
Median Earnings
$831
Median Rent
$239,200
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?
Retail space - Own a turnkey prep kitchen with retail, office, and customer/storage space plus on-site parking.
Where is this retail space located?
The property is located at 612 23rd Street S Fargo, ND.
What is the asking price?
The asking price for this property is $365,000.
What are key features of this property?
This property features: Year built 1971; Includes prep kitchen space with stainless steel sinks, dishwasher, and a large walk‑in cooler (included in sale); Layout features retail area, office space, and room for guests/customers
