3 Big Real Estate Changes Fargo-Moorhead Locals Are Talking About Right Now

Written by:

Alejandra Rodriguez

Date:

16 Apr 2026

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Anyone considering buying, selling, or investing in Fargo-Moorhead is entering a market that is moving quickly and in new directions. After a period of relative stability, the region’s commercial real estate landscape is seeing notable shifts in industrial leasing, office vacancy, and multifamily sales. Here are the three most significant changes shaping opportunities in the area right now.

1. Industrial Leasing Has Rebounded After a Slump

Fargo’s industrial real estate market was known for stability, with low vacancy rates and fast-moving deals. That pattern broke in 2025. Total leasing across office, retail, and industrial sectors fell sharply, dropping from 1.1 million square feet in 2024 to just 614,000 square feet. Industrial properties took the largest hit, especially larger spaces of 50,000 square feet or more, which sat vacant for months.

Andy Westby, president and managing broker at Goldmark Commercial Real Estate, Inc., says leasing activity in larger industrial spaces slowed dramatically in 2025. “Every market’s cyclical, so at some point things are going to slow down,” Westby explains.

However, the slowdown was short-lived. By early 2026, industrial vacancy had dropped from 4.7% to 4.1%, representing a 13% decrease in available space in just a few months. Several major tenants returned to the market, and previously stalled deals began closing. For those searching for warehouse or flex space, the window to secure a deal is narrowing.

Why This Matters Now: Small business owners and investors have a limited opportunity to act. Industrial vacancy remains near 4%, a healthy but tightening level. Base rents are holding steady, so landlords are not cutting prices, but they are more open to negotiating on tenant improvements or lease terms. For smaller industrial bays under 5,000 square feet, availability is especially scarce, and prices remain firm.

2. Office Vacancy Is Finally Declining

Fargo’s office market has faced rising vacancy for several years, driven by remote work trends and companies downsizing space. By 2025, office vacancy reached 11%, an unusually high rate for a market that had been stable for decades. Larger office spaces, especially those over 5,000 square feet, were particularly slow to lease.

That trend began to reverse in early 2026. Office vacancy dropped to just over 10%, and there is renewed interest from tenants seeking spaces over 10,000 square feet. Companies that had delayed decisions due to high interest rates or business uncertainty are now returning to the market.

Westby notes that multiple larger users are actively looking for office space and expects the office sector to continue improving. “We’re bullish that the office market is going to see improvement here,” he says.

Why This Matters Now: Business owners seeking office space have more leverage than they did two years ago, but that advantage is fading as vacancy decreases. For medium and larger offices, landlords are still offering incentives like free rent and tenant improvement allowances, along with slightly more flexible pricing. However, if vacancy continues to fall, these concessions are likely to disappear. Those considering upgrading or consolidating office locations should move quickly to secure the best terms.

3. Multifamily Sales Reached Record Levels and Investor Demand Remains High

While other sectors slowed in 2025, multifamily properties set a new record. Sales volume surged 72% year over year, totaling just under $250 million. Fargo’s multifamily market has long been strong, but last year’s sales figures were exceptional.

Investors are attracted to Fargo’s consistent population growth of 2% to 3% annually and its stable, diversified economy. Unlike larger urban centers that experienced sharp swings during and after the pandemic, Fargo’s multifamily sector remained steady. This reliability appeals to investors seeking dependable returns without the volatility found in bigger markets.

Why This Matters Now: Multifamily remains the safest investment class in Fargo, but industrial properties are also drawing attention. Industrial buildings that sold for $80 per square foot five years ago now command $100 to $120 per square foot. With industrial leasing activity rebounding, the next year could be a prime time to purchase before prices rise further.

What to Watch in the Coming Months

Those tracking Fargo’s real estate market should focus on three key indicators:

– Interest rates: If borrowing costs decrease, expect more tenants and buyers to enter the market. Projects that were delayed in 2024 and 2025 are already resuming, and another rate cut could accelerate activity.
– Construction permits: Permits for new commercial projects were down in 2025, but persistent leasing demand may prompt developers to start new builds by mid-2026.
– Vacancy trends: Continued declines in industrial and office vacancy will shift negotiating power back to landlords, leading to firmer pricing and fewer concessions.

Looking Ahead

Fargo-Moorhead’s real estate market is entering a period of renewed activity after a brief slowdown. Industrial leasing is picking up, office vacancy is finally easing, and multifamily sales remain strong. The next several months will be crucial in determining whether these trends continue or if a new set of challenges emerges. For buyers, sellers, and investors, monitoring vacancy rates, construction activity, and interest rate movements will be key to making informed decisions in this changing market.

About the Expert: Andy Westby is president and managing broker at Goldmark Commercial Real Estate, Inc. in Fargo-Moorhead. He specializes in land, industrial, and office properties and leads a team that tracks every commercial transaction in the metro.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.