By Aaron Hill, Commercial Agent | Goldmark Commercial Real Estate
One of the most common questions I’ve been getting lately from clients is simple. Why is it taking so long to lease space right now?
It’s a fair question, and the data backs it up. On average, office and retail spaces in the Fargo-Moorhead market are sitting for over 400 days before leasing. That’s a long time!
But the reason for that can’t be traced to just one thing. It’s a combination of how tenants are behaving and how the market has shifted over the past few years.
Tenants Are Being More Selective
Today’s tenants are taking their time. They are looking at more options, negotiating harder, and making sure the space truly fits their needs.
In the office sector, especially, companies are still figuring out how much space they need and how they want to use it. That uncertainty slows decision-making.
More Options in Some Segments
Even though we’ve seen inventory tighten in certain areas, there are still plenty of options in others. For example, office inventory remains elevated, and some of the recent declines are tied to listings being pulled rather than fully absorbed.
When tenants have choices, they don’t feel pressure to move quickly.
Deals Are More Complex
Leases today are tightly negotiated more than they were a few years ago. Everything from tenant improvements to lease terms are being discussed in more detail.
That is not a bad thing. It just means deals take longer to come together.
Not All Sectors Are Equal
It’s also important to point out that not every property type is experiencing the same slowdown.
Industrial spaces are moving much faster, with average days on market closer to 200 days. That reflects stronger demand and tighter supply in that segment.
What This Means for Clients
If you are a landlord, patience and strategy are critical. Pricing your space correctly and making it competitive in today’s market is more important than ever.
If you are a tenant, this environment gives you leverage. You have time to evaluate options and negotiate terms that work for your business.
From my perspective, this is not a broken market. It is a more deliberate one. Deals are still getting done, but they are taking more thought and more time.
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At Goldmark Commercial, we track market activity like this every day so our Clients can stay ahead of shifts, not react to them. Our Quarterly Connect report breaks down the trends, data, and real insights driving the FM market. If you want to stay informed and make confident decisions, you can sign up to receive our Quarterly Connect report.