Calculate cap rates and net operating income for commercial properties in North Dakota. Compare your results against North Dakota's tertiary market benchmarks sourced from CBRE H2 2025.
North Dakota's CRE is heavily influenced by energy (Bakken oil shale in western ND), agriculture, and state government. Fargo has diversified into technology, healthcare (Sanford Health, Essentia Health), and retail, and is North Dakota's strongest CRE market. Energy market cycles significantly impact western ND markets (Williston, Dickinson).
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 6.5% | 8.5% |
| Industrial | 7.0% | 9.0% |
| Retail | 7.0% | 9.0% |
| Office | 7.5% | 10.0% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
North Dakota cap rates range from 6.5–8.5% for multifamily, 7.0–9.0% for industrial and retail, and 7.5–10.0% for office. Fargo has the most competitive rates while energy-dependent western ND markets can be significantly higher and more cyclically volatile.
Western North Dakota's Bakken oil shale basin creates boom-bust CRE cycles tied to oil prices. During high-price periods (2011–2014, 2022), Williston and Dickinson saw dramatic demand for multifamily, hotel, and oilfield services industrial. When prices fall, vacancy spikes and values drop dramatically. Investors in these markets must carefully model energy price scenarios.
Fargo has diversified beyond energy into healthcare (Sanford Health and Essentia Health are major employers), technology (Microsoft, Doosan Bobcat HQ), retail (serves a large trade area across eastern ND and western MN), and agricultural equipment manufacturing. This diversification has created more stable CRE fundamentals than energy-dependent western ND markets.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.