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| Market Data | Current Trends | Outlook |
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| Inventory (sf) | Central City | Suburban |
| Total | - | 14,831,676 |
| Vacant | - | 596,475 |
| Vacancy Rates | na% | 4.02% |
| Under Construcion | - | 160,807 |
| Net Absorption | - | 232,630 |
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| Site Prices ($/sf) | Central City | Suburban |
| Improved Sites |
| Less than 2 acres | - | $2.00 |
| 2 to 5 acres | - | $1.70 |
| 5 to 10 acres | - | $1.25 |
| More than 10 acres | - | $0.90 |
| Unimproved Sites |
| Less than 10 acres | - | $0.32 |
| 10 to 100 acres | - | $0.16 |
| More than 100 acres | - | $0.08 |
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Prime Source of Financing: Self Funded
Mortgage Money Supply:Ample
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| Composition of Absorption |
| Warehouse/Distr. | 65.0% |
| Manufacturing | 25.0% |
| High Tech/R&D | Up |
| Composition of Inventory |
| Warehouse/Distr. | 60.0% |
| Manufacturing | 30.0% |
| High Tech/R&D | Up |
| Rate of Construction |
| Warehouse/Distr. | Same |
| Manufacturing | Same |
| High Tech/R&D | 11-15% Up |
| Dollar Volume-Sales |
| Warehouse/Distr. | Same |
| Manufacturing | Same |
| High Tech/R&D | Same |
| Dollar Volume-Leases |
| Warehouse/Distr. | Down 1-5% |
| Manufacturing | Down 1-5% |
| High Tech/R&D | Up 6-10% |
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| Sales Prices |
| Warehouse/Distr. | Down 1-5% |
| Manufacturing | Same |
| High Tech/R&D | Up 1-5% |
| Lease Rates |
| Warehouse/Distr. | Same |
| Manufacturing | Same |
| High Tech/R&D | Up 1-5% |
| Site Prices | Same |
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| Absorption |
| Warehouse/Distr. | Down 1-5% |
| Manufacturing | Same |
| High Tech/R&D | Up 6-10% |
Construction
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| Warehouse/Distr. | Down 1-5% |
| Manufacturing | Down 1-5% |
| High Tech/R&D | Up 6-10% |
| Dollar Volume-Sales | Up 1-5% |
| Dollar Volume-Leases | Up 1-5% |
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| Sales Prices | Lease Prices | Construction | Vacancy |
| Central City | Suburban | Central City | Suburban | ($/sf) | Indicators |
| Less than 5,000sf | - | $45.00 | - | $4.75 | $44.60 | Substantial Oversupply |
| 5,000 - 19,999 sf | - | $39.00 | - | $4.10 | $41.50 | Substantial Oversupply |
| 20,000 - 39,999 sf | - | $35.00 | - | $3.50 | $40.35 | Balanced Market |
| 40,000 - 59,999 sf | - | $34.00 | - | $3.25 | $38.40 | Moderate Shortage |
| 60,000 - 99,999 sf | - | - | - | - | $37.00 | Moderate Shortage |
| 100,000 - 250,000 sf | - | - | - | - | $25.65 | Balanced Market |
| More than 250,000sf | - | - | - | - | - | Balanced Market |
| High Tech/R&D | - | - | - | - | - | Moderate Shortage |
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| Warehouse and Factories | Research & Development |
| Central City | Suburban | Central City | Suburban |
| Real Estate taxes | - | $0.75 | - | $1.45 |
| Insurance(Fire and Liability) | - | $0.20 | - | $0.25 |
| Structural and Roof Maintenance | - | $0.15 | - | $0.15 |
| Common Area Maintenance | - | - | - | $0.35 |
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Reporter(s)
Olson Konrad, Konrad Olson Real Estate 701.280.1606 email me |
Alien Technology is the exciting development in the Fargo industrial market this year. Alien announced they would build a 47,250 sq. ft. production facility in Fargo. The facility will include research and development and production of RFID or Radio Frequency Identification tags for retail and military applications. Daimler Chrysler has reduced production for its Global Electric Motorcar subsidiary in Fargo. Sysco acquired one of those facilities consisting of 150,000 sq. ft. for its new distribution center in Fargo. Vacancy rates continued to edge up as new space is being built. New construction is owner-occupied space and not built for speculation. Firms have left rental spaces to become owners.
In Cooperation w/
Neal Ericksmoen, Appraisal Services 701.235.1189 neal@asind.com |
The economy of Fargo Moorhead, while tempered for a short period by the national economy, appears to be resuming its normal vitality. The amount of vacant space is comprised primarily of office warehouse space in the 3,000 to 6,000 sq. ft. range. Additional building is expected as tenants move to become owners of their business real estate. We expect that Alien Technologies' decision to locate in Fargo will spur supporting industry to locate here to service Alien's production needs. |
| Definitions |
| Please read carefully. The following definitions are given to insure uniformity of response. Use, not building design, determines reporting category. |
Central City/Suburban Areas -Since the definition of urban and suburban areas varies widely, it is the responsibility of the individual survey panelist to reflect his or her area's particular characteristics.
High Technology/R&D - Refers to highly improved space with 50 percent or more office potential and higher-than-normal parking.
Must have some industrial function to qualify; cannot be pure office.
Total Inventory -Total square footage of rentable industrial space (including R&D space), vacant and occupied, including owner occupied space, ready for tenant finish, in your market area.
Vacant Inventory -Total square footage of vacant rentable industrial space, including sublease.
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Net Absorption - Net absorption is the net change in occupied space.
Construction - Ground must be broken. Do not include projects that are still in the planning stage.
Prime Industrial Building - Buildings in the top 25 percent of overall desirability of the existing inventory; such buildings are considered to be for general purpose uses such as industrial, research, warehouse and/or manufacturing.
Net Lease - A lease in which the tenant bears the responsibility for real estate taxes, insurance and operating expenses.
Gross Lease - A lease in which the tenant's rent includes real estate taxes and fire and extended coverage insurance, as well as maintenance of the roof structure and outside walls.
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Improved Sites - Sites in the top 25 percent of overall desirability of the existing inventory. Such sites are in a "ready-to-build" condition and are essentially level and graded and serviced with all necessary utilities.
Unimproved Sites - Sites in the top 25 percent of overall desirability of the existing inventory and are zoned for industrial use. Streets and utilities may not yet be installed but are reasonably close and available.
Construction Costs - Should reflect only hard construction costs such as general contractor, overhead, and profit but exclude architectural and engineering fees, and financing.
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