Crexi equips commercial real estate professionals across Sioux Falls, SD, with powerful, accessible tools to be successful. Investors and tenants nationwide identify Sioux Falls as a stable, steadily growing investment with consistent returns and promising cap rates. Crexi connects these interested parties with market insights and brokers to make the best investment decisions regarding Sioux Falls commercial properties.
To date, buyers and tenants comprise approximately 92% of Crexi’s digital traffic, seeking the property best suited to their requirements.
Brokers in Sioux Falls and throughout the country utilize Crexi’s powerful listing tools, lead management, and open marketplace to connect with buyers and tenants interested in Sioux Falls commercial real estate.
Crexi’s robust CRE tools have simplified and accelerated transactions totaling over $300 billion in value. Its marketplace features more than 400,000 properties to date valued at $1.2 trillion since Crexi’s 2016 launch.
The Crexi team proudly serves Sioux Falls and Minnehaha County as the fastest-growing digital commercial real estate platform.
The State of Commercial Real Estate in Sioux Falls
Note: the current COVID-19 crisis has impacted this data. The coronavirus’ long term impact has yet to be determined, but CRE professionals should keep these developments in mind when evaluating the following information.
The Sioux Falls MSA encompasses areas in Lincoln, Minnehaha, McCook, and Turner counties, located in the south-eastern corner of the state bordering Minnesota and Iowa.
The Sioux Falls MSA is so named for its nearby waterfall landmark, known for its national parks and the active lifestyle of its residents. Nicknamed the “Best Little City in America,” Sioux Falls serves as Minnehaha County’s seat and the largest, most populous city in South Dakota.
Sioux Falls Regional Breakdown
The population of the city Sioux Falls sits at 183,793 as of 2019, increasing by 19.4% from its 2010 count. In turn, the Sioux Falls MSA housed 229,203 residents in 2019, an increase of 9.9% since 2010.
Lower rents and attractive costs of living, and plentiful opportunities to purchase homes have attracted both younger multifamily tenants, first-time homeowners, and retiree populations to the city. The MSA currently has a median household income of $59,017, 4200 jobs added from 2017-2019, and an unemployment rate average of 2.2%. As such, Sioux Falls features an attractive job market and plentiful employment opportunities for residents and newcomers alike.
Sioux Falls has particularly attracted major tenants in the healthcare, retail, and banking industries such as Sanford Health, Citi, and Wells Fargo. The Tea suburb and Harrisburg in South Sioux Falls are two fast-growing submarkets within the city. The downtown sector is also thriving with recent office and retail development. Too, the I-29 and I-90 corridors offer easy transport to major Heartland metropolitans and account for the hefty industrial interest in Sioux Falls.
Overall, the Sioux Falls commercial real estate sector has established a healthy cadence of development and filling vacancy across asset classes. As coastal markets face upheavals due to current events, more investors and tenants look to the Sioux Falls MSA as a stable market with consistent growth and ROI.
Sioux Falls Industrial Market
Industrial leads as one of Sioux Falls’ most robust markets, thanks to the region’s proximity to the I-29 and I-90 passes. The industrial sector saw a 3.55 % vacancy rate headed into 2020, ending the previous year with almost $60 million in sales. We can attribute the low vacancy rate to the unilateral demand growth for the sector in recent years. Too, around 65% of industrial properties are owner-occupied in Sioux Falls.
In leasing, asking rates hovered between $6.00-7.50 per square foot in Class A buildings at the end of 2019, while Class B and C start at $4.50 per square foot and $3.25 per square foot, respectively. Industrial is likely to stay healthy, thanks to a growing e-commerce sector and limited retail access due to COVID-19.
Sioux Falls Office Market
Sioux Falls’ office sector has seen productive activity in the last few years, particularly in the Downtown submarket. Overall, vacancy rates dropped to 9.87% in the MSA, while the Downtown neighborhood dropped to 5.5% in 2019. Class A buildings are in the highest demand within the asset class, both in development and tenant attraction.
Office sales accounted for $34 million in transaction value in 2019, up from $20 million in 2018. With leases, 2019’s market closed at rates of approximately $13.10 per square foot in the most desirable markets. However, the impact of COVID-19 may drive interest in suburban office structures as people seek less densely-populated office solutions.
Sioux Falls Retail Market
Compared to coastal markets, Sioux Falls retail assets have seen a minimal impact from the pandemic. Big box spaces have been backfilled while closures have attracted unsolicited investor interest in several listings, per regional brokers. By 2019’s close, the retail vacancy rate rose to 17% up from 15.5% in 2018, while transaction value ranked at approximately $55 million.
Despite setbacks from COVID-19, retail is likely to stay afloat. E-commerce giants still seek to build brick & mortar strongholds, and Gen-Z’s preference for in-person, experiential brand experiences drives traffic towards storefronts. Too, Sioux Falls has remained relatively sheltered from the coronavirus and faced minimal closures.
Sioux Falls Multifamily Market
Multifamily, by far, has the most existing development and demand. Sioux Falls multifamily has seen a sales volume of nearly $100 million over 43 transactions in 2019, up from approximately $75 million in 2018. Cap rates settled around 6.75% in early 2020. This number will likely stay the same as coastal residents look to Sioux Falls as a viable, nature-filled option to escape metropolitan crowds.
As construction slows from a 2016 high, multifamily vacancy rates are likely to decrease as demand fills the existing inventory.
How Crexi Connects Buyers and Tenants to Sioux Falls CRE Properties
Thanks to Crexi’s open marketplace, buyers and tenants across the country can browse Sioux Falls and South Dakota properties to find suitable investment and leasing options. Sioux Falls ranks as one of the US’s most healthy and nature-friendly cities, with a growing population of homeowners and low unemployment rates.
Buyers and tenants alike use Crexi’s free search functionality to browse Sioux Falls property for sale and lease. Users can narrow searches by rate/price per square foot, property type, asset class, square footage, neighborhood, and even school district.
Once a property is identified, tenants and investors can reach out to the broker representative via Crexi’s platform. Those interested in a Sioux Falls property can easily download brochures and submit letters of intent (LOI) using Crexi’s secure platform.
Intelligence offers Investors Data, Insights and Market Knowledge
Investors and tenants utilize Crexi’s Intelligence offering to make the best possible CRE decisions. The database includes thousands of third-party verified sales comparables and more than 50 MSA market reports, including data on Sioux Falls, South Dakota. Crexi’s Intelligence offering makes it easier than ever to make informed commercial real estate investing and leasing decisions when browsing Sioux Falls commercial property.
Buyers, sellers, and tenants can access Intelligence on a subscription basis.
How Sioux Falls Brokers Win with Crexi
Crexi’s marketplace features more than 200 Sioux Falls properties for sale and over 440 properties for lease within the city’s limits. Industrial and multifamily drive activity in the region of particular attraction to both tenants and 1031 buyers.
In Sioux Falls and throughout the MSA, brokers can list properties and manage transactions across various asset classes, including:
- Industrial units
- Land Parcels
- Development sites
- Multifamily units
- Office facilities
- Hospitality buildings
- Non-traditional and mixed-use properties such as data centers, medical offices, etc.
Crexi’s marketplace enables brokers to manage properties and transactions online from list to close. Sioux Falls brokers can manage lead outreach and observe buyer activity in real-time, gaining insights as they manage their deals pipeline. Brokers can even conduct due diligence documentation in Crexi’s encrypted file vault.
Crexi’s broker tools’ true power is unleashed with Sale PRO, Lease PRO, and All PRO.
Crexi All PRO
Crexi Sale PRO and Lease PRO empowers brokers with high-level access to lead contact information and marketing analytics, as well as fully-customized lead reports. PRO listings are automatically placed at the top of Crexi search pages, where buyers and tenants can find them immediately. These listings also get emailed to Crexi’s user base every week, viewed by thousands of relevant buyers across the US. Crexi’s email blasts optimize highly relevant properties based on each buyer’s searches, achieving a click-through rate (CTR) of 10-15% on average.
Crexi PRO subscribers also enjoy access to Intelligence at no added cost, featuring over 13 million sales comparables, 40 million property records, and over 50 MSA market reports.
Brokers — including professionals in Boise and Ada County — maximize Crexi’s PRO features to connect with more than 3000 leads interested in South Dakota and the 3 million new leads nationwide added in 2020 alone.
On average, PRO users achieve 125% more leads and close an average of six to eight more deals than non-PRO subscribers.
Contact email@example.com to learn more about All PRO.