REAL ESTATE BY: MIKE ILSE, ASPEN GROUP LLP
BY: NANCY DEICHERT, BISMARCK MANDAN BOARD OF REALTORS
BY: BILL DANIEL, DANIEL COMPANIES
Q: Looking back, how was 2019 for the Real Estate industry? A: 2019 was a very consistent year for commercial real estate in Bismarck-Mandan. We continued to witness gradual growth and recovery from the last five years. The slow but steady absorption of office, retail, and industrial property can be seen throughout Bismarck-Mandan. The Hay Creek Shopping Center has established the addition of new tenants like Pizza Ranch, Aspen Dental, and T-Mobile. Phase 1 of the Sunrise Square addition that’s attached to Williquors is already approximately 75 percent leased and currently in construction. Companies like Roers Construction out of Fargo have decided to lease industrial property in Bismarck and everyday there is less and less office space available.
Q: Looking back, how was 2019 for the Real Estate industry? A: As with the rest of the country, the first part of 2019 was a bit sluggish for sales. But then there was an unusual uptick in activity later in the year. During December overall residential sales were up 22 percent over December of 2018. It isn’t readily apparent why the uptick happened. At the close of the year, statistics for Bismarck-Mandan-Lincoln showed an increase in home sales of 3.3 percent. Overall home sales were up by 4.5 percent (this reflects all sales in the Multiple Listing Service, including those areas outside of Bismarck-Mandan-Lincoln).
Q: Looking back, how was 2019 for the Real Estate industry? A: The commercial real estate market in Bismarck-Mandan was a year with steady and predictable growth in most sectors of the market. There was caution in some areas with decreasing demand for office and industrial space and growing vacancies in the big box retail sector including the former Sears, Herberger’s and Kmart locations. At the same time, Costco and Cashwise Foods were under construction adding new future retail opportunities to shoppers. The strongest sectors driving commercial real estate sales, leasing and development were those in the healthcare, multi-unit apartment projects, senior living, financial, small retail, restaurants, mixed use developments and service-related companies.
Q: Looking forward, what is the outlook in 2020 for the Real Estate industry? A: 2020 started out with more energy and excitement than in have seen in the Bismarck-Mandan area in the last five years. 2020 should have been remembered for high profile projects like 157,000 square foot Costco or the redevelopment of Herberger’s at Kirkwood Mall with the addition of Blaze Pizza, Chick-Fil-A, and Five Guys. But obviously now it’s going to be remembered for COIVD 19 and the economic shut down. With businesses slowly reopening and trying to figure out what the new normal looks like, it is very hard to predict the next 1224 months. I always like to stay optimistic and never forget that no matter what is happening outside our community, the Bismarck-Mandan area is a great place to invest.
6 } 2020 ECONOMIC OUTLOOK } REAL ESTATE
Q: Looking forward, what is the outlook in 2020 for the Real Estate industry? A: 2020 started out at steady pace, and then COVID-19 hit which temporarily deterred some buyers. By May buyers were actively back in the market. The number of homes under contract exceeds 2019 at this time. Low interest rates offer more buying power to shoppers; with sales in the $300,000-$399,999 price range matching the popular $200,000-$250,000 price range. Expectations are for a healthy market for the remainder of 2020.
Q: Looking forward, what is the outlook in 2020 for the Real Estate industry? A: The 2020 commercial real estate market was off to a solid start with a strong demand from buyers for leased investment properties and owner/user buildings. The current market has been challenged with uncontrolled outside factors including COVID-19 shutdown, low oil prices, a volatile stock market, low ag prices and concern about the future of coal in North Dakota. There are opportunistic buyers/investors who want to diversify their portfolios and they continue to have interest in attractively priced real estate which they can finance at record low interest rates. Business and professional office space users will find that 2020 will be a good opportunity to lease new space or become a building owner. Bismarck-Mandan commercial real estate market is well positioned for a solid future.
