Medical Office
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108 W FOURTH ST, Dell Rapids, SD 57022
B-2 General Business zoning supports professional office use with a separately configured leased office level.
Property Size5,642 SF
Price / SF$163.14
Days on Market6
Property Features for 108 W FOURTH ST
General Information
Standard status
Active
Size
5,642 SF
Class
B
Total Parking Spaces
16
Property subtype
Retail, Office
Zoning
B-2 General Business
Additional Details
Office Units
2
Building Details
Year Built
2002
Buildings
1
Stories
1
Units
2
Building Size
5,642 SF
Listing Agency:
Jamison Real Estate
Listed By:
Greg Jamison · License #SD
Source:
Crexi
Added: Aug 31
Changed: Sep 2
Last Checked: Sep 2 at 1:55PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Jamison Real Estate
Investment Insights
Based on property information with market context.
This two-level office property was constructed in 2002 and is identified for professional medical use. The building includes a separately configured lower-level office component that is leased on a year-to-year basis, providing existing occupancy within the property. The upper level was previously occupied by a dental practice and offers office space adaptable to other professional applications.
Located at 108 W Fourth St in Dell Rapids, South Dakota, the property carries B-2 General Business zoning. Its medical-office history, distinct floor configuration, and existing lower-level lease create a commercial building suited to professional office operations.
Located at 108 W Fourth St in Dell Rapids, South Dakota, the property carries B-2 General Business zoning. Its medical-office history, distinct floor configuration, and existing lower-level lease create a commercial building suited to professional office operations.
Key Highlights
- Constructed in 2002
- B‑2 General Business zoning
- Former dental‑office occupancy on the upper level
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
$68,695
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
7.43%
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%
$1,373,900
$1.4M
Cap Rate 7%
$981,357
$981.4K
Cap Rate 9%
$763,278
$763.3K
Market Conditions
NOI Build-Up for 5,670 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
$107.5K $18.96/SF
− Vacancy
−$15.9K −$2.81/SF
EGI
$91.6K $16.15/SF
− OpEx
−$22.9K −$4.04/SF
NOI
$68.7K $12.12/SF
Area
Minnehaha County, SD
Vacancy
14.80%
Lease Rate
$18.96 /SF/Yr
Expense Ratio
25.00%
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%
$1,373,900
Cap Rate 7%
$981,357
Cap Rate 9%
$763,278
Alternative Uses
Best Use
Office B
$981.4K
$858.7K – $1.14M
NOI $68,695 @ 7.0% cap · market cap 7.43%
Second Best
Healthcare Medical
$943.3K
$825.4K – $1.10M
NOI $66,032 @ 7.0% cap · market cap 7.14%
Theoretical Best
Office A
$1.53M
$1.34M – $1.78M
NOI $106,992 @ 7.0% cap · market cap 11.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
305
Businesses Nearby
Explore this area
Business Placement
Demographics for 57022, SD
5,432
Population
2,130
Households
2.6
Avg Household Size
38
Median Age
37%
College-Educated
97%
High-School Grad
141.4 sq mi
ZIP Area
38
Density / Sq Mi
$100,595
Median Household Income
$53,828
Median Earnings
$940
Median Rent
$293,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - B-2 General Business zoning supports professional office use with a separately configured leased office level.
Where is this office building located?
The property is located at 108 W FOURTH ST Dell Rapids, SD.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: Constructed in 2002; B‑2 General Business zoning; Former dental‑office occupancy on the upper level
