By Brett Saladin, CCIM, Commercial Agent at Goldmark Commercial Real Estate | Fargo, ND
Every business reaches a point where it needs to make an important decision about space. Whether you are expanding, relocating, or opening your doors for the first time, one of the first questions you will face is this: Do I build new, or do I lease or buy an existing property?
In the Fargo-Moorhead commercial real estate market, both options offer unique advantages. The right choice depends on your timeline, budget, long term goals, and the specific needs of your business. Having spent years working in commercial construction and now advising clients on real estate investments, I have seen both paths lead to success when the decision is made with a clear strategy and the right guidance.
Here is how build to suit and existing space options compare, and what to consider when deciding which is best for you.
Build to Suit: Tailored for Your Vision
A build to suit property is designed and constructed specifically for your business. You either lease it from a developer or build it yourself, creating a space that fits your exact operational needs.
Pros:
- Customization: Every square foot is planned around your business operations, brand, and workflow.
- Efficiency: Modern design and new systems can lower utility costs and maintenance expenses.
- Long Term Fit: The space grows with your business and supports future expansion.
- Potential Incentives: Local municipalities sometimes offer tax or development incentives for new builds.
Cons:
- Time: Construction takes longer than moving into an existing space. Permitting, design, and build phases require patience.
- Upfront Costs: Land acquisition, materials, and construction costs can add up.
- Commitment: Build to suit projects usually require long term leases or ownership, so flexibility is limited.
Local Insight:
In the Fargo-Moorhead metro, build to suit projects are popular for industrial, medical, and retail users who have specific operational layouts. With strong local contractors and available land in areas such as West Fargo, South Fargo, and Moorhead, this option remains very feasible for businesses planning long term growth.
Existing Space: Practical and Proven
Leasing or purchasing an existing property is often faster and more flexible. These spaces may need updates or customization, but they are move-in ready and can offer cost savings up front.
Pros:
- Speed: You can occupy the space quickly with minimal delay.
- Lower Initial Cost: Leasing or buying an existing property generally requires less capital up front.
- Established Locations: Many existing spaces are in proven, high traffic areas with built in customer bases.
- Flexibility: Shorter lease terms or resale options allow you to adjust as your business evolves.
Cons:
- Limited Customization: You may need to compromise on layout, size, or infrastructure.
- Maintenance Costs: Older buildings may require more upkeep or system upgrades.
- Design Constraints: Renovations can be restricted by existing architecture or zoning.
Local Insight:
In the Fargo-Moorhead region, many small to mid sized businesses choose existing retail or office spaces to save on costs and start generating revenue quickly. There are strong opportunities in redeveloped corridors and business parks throughout the region, offering affordability and accessibility.
Which Option Fits Your Goals?
When deciding between build to suit and existing spaces, consider the following questions:
- How quickly do you need to occupy your new location?
- How important is a customized layout to your operations?
- What is your long term business plan for growth or expansion?
- Do you want to own or lease your space?
A business with highly specific space requirements may benefit from a new build, while a company focused on flexibility or cost savings might prefer an existing property. The good news is that in our region, both paths are available and supported by a strong local market, talented builders, and experienced brokers who understand the process from start to finish.
Final Thoughts
Choosing between a build to suit and an existing property is more than a real estate decision. It is a strategic business move. Understanding your goals, timeline, and financial outlook will help you select the right option for long term success.
With experience in both commercial construction and real estate, I help clients analyze each scenario, identify the best opportunities, and connect with trusted local partners to make their vision a reality.
About the Author
Brett Saladin, CCIM, is a Commercial Agent at Goldmark Commercial Real Estate in Fargo, ND. He helps clients buy, sell, and lease office, retail, industrial, multi family, and agricultural properties. Brett earned his CCIM designation from The CCIM Institute in 2024 and brings a unique combination of construction knowledge, market insight, and client focused service to every transaction.