The commercial real estate market is booming in Bismarck, and plans for new developments are on the rise.
Last year, COVID took a toll on commercial real-estate — putting future developments on hold.
“Inquiries are coming in so we’re happy with the inquiries. For the first time we are starting to see national inquiries call and look for properties in Bismarck,” said Broker George Yineman.
Yineman said national attention makes room for other large chain companies to bring their business to Bismarck.
“A national entity, a national franchise is like Crumble Cookies. If you have been in there to see what kind of national influence were taking place, it’s spring activity in the market and the commerce and the interest for something new is working. It’s being supported,” he said.
Kristyn Steckler with Commercial Real Estate Advisors says the market just keeps growing. Spaces at Sunrise Square are filling up fast.
“There’s a workout facility, there’s the dentistry and a shake place and a chiropractor, and a pizza place,” Steckler said.
And now a second addition is planned for Sunrise Square.
“Rates are at an extremely competitive level and certainly interest rates are good. A lot of this activity is prompted by the lower interest rates,” Yineman said.
According to Jason Ulmer with Business Banker, interest rates are as low as 4% are resulting in bigger savings overall.
“You can leverage your money better. We’re definitely seeing a lot of buyers come out and there’s a lot of money in the area,” Steckler said.
It is not just the rates that are low but the cost to build is low for supplies.
“As far as activity in construction, the decrease in lumber construction is now giving developers the green light,” said Yineman.
Businesses are staying in their leases, but many are adjusting the square footage they need. Steckler says businesses are downsizing because employees are still working from home.
“Some of them are taking larger locations and some of them are even downsizing. The transaction on leases is abundant,” said Steckler.
Brokers are hoping the commercial real estate market will continue to thrive.