By Andy Westby, President, Managing Broker & Auctioneer | Goldmark Commercial Real Estate
Industrial real estate has always been an important part of the Fargo Moorhead market, but the way companies use industrial space continues to evolve.
Warehousing, logistics, manufacturing, and distribution users are thinking differently about their facilities than they did even five years ago. Efficiency matters more. Access matters more. And for many companies, having room to grow has become just as important as meeting their immediate space needs.
After a slower 2025, we saw industrial activity come back quickly in the first half of 2026. More than 850,000 square feet of industrial space has been leased across the Fargo Moorhead metro from January through August alone, almost 3X the roughly 297,000 square feet leased during all of 2025. Metro industrial vacancy also dropped from 4.7% at the end of 2025 to just 2.1% by the end of September 2026..
Those numbers tell us something important. Industrial users are making moves again. But what they are looking for is becoming increasingly specific.
Warehousing Is About More Than Square Footage
When companies come to us looking for warehouse space, the conversation rarely starts and ends with square footage.
They want to know how the building functions.
What is the clear height? How many docks and overhead doors are available? Is there enough room for trucks to maneuver? Is outdoor storage available? What is the power availability or the floor loading capacity? How quickly can employees and deliveries get to the interstate? And if the company grows, is there somewhere for it to grow?
Those factors can make two buildings with the same square footage perform very differently for the same user.
That is one reason newer, functional industrial buildings and well-located existing properties continue to attract attention. Companies are looking at the total efficiency of the facility, not simply the best cost per square foot.
Logistics Continues to Favor Fargo Moorhead
Location has always been one of the Fargo Moorhead market’s biggest advantages for industrial users.
The intersection of I-29 and I-94 gives companies direct access to two major interstate corridors, connecting the region to markets throughout the Upper Midwest.
For logistics and distribution companies, that connectivity matters. Transportation costs, delivery times, access for employees, and proximity to customers all factor into real estate decisions.
That also makes the specific location within the metro important. Industrial users are paying close attention to interstate access, major arterial roads, truck routes, and how easily products can move in and out of a facility.
Manufacturing Is Creating Different Real Estate Needs
Manufacturing adds another layer to the industrial market because those users often have requirements that traditional warehouse tenants do not.
Power capacity, floor loads, ventilation, clear heights, loading capabilities, outdoor storage, and room for specialized equipment can all become critical.
We are also seeing continued investment in manufacturing and industrial facilities locally. During the first two months of 2026, permits included a new 90,000-plus-square-foot warehouse for Long Creek Steel in West Fargo, while new industrial permit values across the metro exceeded $108 million through August.
Goldmark Commercial has also had a front-row seat to what growth can look like for local manufacturers. Packet Digital (link to the case study) , for example, expanded from an 11,000-square-foot corporate headquarters and engineering facility in 2021 to additional production space in 2023 and an 80,000-square-foot facility supporting Badland Batteries in 2024.
That progression is a good example of why industrial real estate decisions need to account for where a company is headed, not just where it is today.
West Fargo Remains an Industrial Market to Watch
One area that continues to stand out is West Fargo.
Industrial vacancy there is just 1.6% near the end of September, and industrial sales volume has increased more than 190% year over year through August. We also saw significant new construction and manufacturing investment occurring in that part of the metro.
That does not mean every industrial user belongs in West Fargo. Fargo, Moorhead, and other surrounding areas each offer different advantages depending on a company’s needs.
But it does reinforce a broader trend. Industrial growth is following infrastructure, transportation access, available land, and the ability to accommodate larger modern facilities.
Flexibility Will Matter Going Forward
If there is one thing I expect to remain important in the industrial market, it is flexibility.
Companies change. Distribution models change. Manufacturing processes change. Businesses add employees, equipment, product lines, and customers.
A building that works perfectly today may become restrictive several years from now.
That is why we encourage Clients to think beyond their immediate requirements. Can the property accommodate an addition? Is adjacent land available? Could warehouse space be reconfigured? Does the site have enough parking or outdoor storage to support future growth?
Paying attention to those questions upfront can prevent an expensive move later.
What Does This Mean for Owners and Investors?
For industrial property owners, functionality is becoming increasingly important.
Older buildings can absolutely remain competitive, but owners need to understand how their properties compare to newer inventory. As noted above, loading, clear height, lighting, power, parking, truck circulation, and outdoor storage can all affect marketability.
For investors, industrial continues to offer opportunity, but it is important to look beyond the asset class itself. Location, tenant quality, lease structure, building functionality, replacement cost, and future capital needs all matter.
Strong demand does not automatically make every industrial property a strong investment.
Where the Market Goes From Here
The industrial sector can move quickly, which is exactly why we track it so closely at Goldmark Commercial.
The dramatic increase in leasing activity in 2026 is encouraging, but two or three quarters does not define a long-term trend. We will continue watching vacancy, leasing velocity, construction activity, sales, and new supply to understand whether that momentum carries forward.
What we can say today is that industrial users are active, and their requirements are becoming more sophisticated and harder to match with existing inventory.
For warehouse, logistics, and manufacturing companies, the right real estate decision is increasingly about finding a property that can support both today’s operation and tomorrow’s growth.
That is where good market data and a clear understanding of the business become especially valuable. At Goldmark Commercial, our job is to bring those pieces together so Clients can make informed decisions based on what is actually happening in the market.