Two-Building Warehouse
New
For Sale
$829,000
2821 8th Avenue, Aberdeen, SD 57401
Commercial, Aberdeen, SD
Property Size10,700 SF
Lot Size2.60 Acres
Price / SF$77.48
Days on Market2
Property Features for 2821 8th Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Aberdeen - City
Standard status
Active
Size
10,700 SF
Lot size
2.60 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
LT 4 Nordstrom-Pierson ADD SW8-123-63 (Nordstrom 1st SD Cutler OL)
Tax Annual Amount
7565
Legal Description
LT 4 Nordstrom-Pierson ADD SW8-123-63 (Nordstrom 1st SD Cutler OL)
Building Details
Year built
1978
Listing Agency:
Dakota Plains Real Estate & Development
(605) 225-1800
Listed By:
Sterling Jones
(605) 225-1800
Added: Aug 21
Last Checked: Aug 22 at 6:06PM
MLS# 26-582
Copyright © 2026 Aberdeen Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This warehouse property includes two buildings totaling 10,700 square feet on 2.6 acres. The storage-shop building contains five bays across two double shops and one single shop, with a bathroom. All five bays are leased, and tenants pay their own electric service.
The main building is vacant and includes office areas and a bathroom, providing additional warehouse and commercial space. Both buildings have boiler-based in-floor heat, while the far north storage room in the main building is not heated. Built in 1978, the property is located at 2821 8th Avenue in Aberdeen, South Dakota.
The main building is vacant and includes office areas and a bathroom, providing additional warehouse and commercial space. Both buildings have boiler-based in-floor heat, while the far north storage room in the main building is not heated. Built in 1978, the property is located at 2821 8th Avenue in Aberdeen, South Dakota.
Key Highlights
- Two buildings totaling 10,700 square feet on 2.6 acres
- Five‑bay storage‑shop component with all bays leased
- Main building is vacant and includes offices and a bathroom
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$29,468
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.55%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$589,360
$589.4K
Cap Rate 7%
$420,971
$421.0K
Cap Rate 9%
$327,422
$327.4K
Market Conditions
NOI Build-Up for 10,700 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$34.7K $3.24/SF
− Vacancy
$0 $0.00/SF
EGI
$34.7K $3.24/SF
− OpEx
−$5.2K −$0.49/SF
NOI
$29.5K $2.75/SF
Area
Brown County, SD
Vacancy
0.00%
Lease Rate
$3.24 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$589,360
Cap Rate 7%
$420,971
Cap Rate 9%
$327,422
Alternative Uses
Best Use
Flex RnD
$1.18M
$1.03M – $1.38M
NOI $82,625 @ 7.0% cap · market cap 9.97%
Second Best
Warehouse
$421.0K
$368.4K – $491.1K
NOI $29,468 @ 7.0% cap · market cap 3.55%
Theoretical Best
Healthcare Medical
$1.87M
$1.63M – $2.18M
NOI $130,775 @ 7.0% cap · market cap 15.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
130
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 57401, SD
32,275
Population
15,016
Households
2.1
Avg Household Size
37
Median Age
35%
College-Educated
93%
High-School Grad
278.8 sq mi
ZIP Area
116
Density / Sq Mi
$68,183
Median Household Income
$40,562
Median Earnings
$787
Median Rent
$216,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- A B Self Storage — 101 N Roosevelt St, Aberdeen, SD 57401
- Jobbers Moving & Storage — 315 Brown County, 19th St N, Aberdeen, SD 57401
Frequently Asked Questions
What type of property is this?
Warehouse - Includes leased storage shops, a vacant main building, offices, bathrooms, and in-floor boiler heat.
Where is this warehouse located?
The property is located at 2821 8th Avenue Aberdeen, SD.
What is the asking price?
The asking price for this property is $829,000.
What are key features of this property?
This property features: Two buildings totaling 10,700 square feet on 2.6 acres; Five‑bay storage‑shop component with all bays leased; Main building is vacant and includes offices and a bathroom
