Medical Office
New
For Sale
$925,000
108 W 4th St, Dell Rapids, SD 57022
COMMERCIAL, Dell Rapids, SD
Property Size5,642 SF
Lot Size0.41 Acres
Price / SF$163.14
Days on Market2
Property Features for 108 W 4th St
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
B-2
Subdivision
LL Dunns Addn
Directions
Across the street from Dells Auto in Dell Rapids
Standard status
Active
APN
22487
Size
5,670 SF
Lot size
0.41 Acres
Taxes and HOA fees
Tax Description
S120 LOTS 6 & 7 BK 5 DUNNS SUBD B L L DUNNS ADDN TO CITY OF DELL RAPIDS
Tax Annual Amount
7169
Legal Description
S120 LOTS 6 & 7 BK 5 DUNNS SUBD B L L DUNNS ADDN TO CITY OF DELL RAPIDS
Building Details
Year built
2002
Listing Agency:
Jamison Company Real Estate
(605) 359-0448
Listed By:
Greg Jamison
(606) 351-9853
Added: Aug 31
Changed: Sep 1
Last Checked: Sep 1 at 4:06AM
MLS# 22606756
Copyright © 2026 Realtor Association of the Sioux Empire MLS. 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 two-level medical office property was built in 2002 and includes 2,840 square feet on the upper level and 1,460 square feet of office space below. The upper floor was previously used as a dental office, while the lower level has its own access and is leased on a year-to-year basis.
The property sits on 0.4132 acres in Dell Rapids, South Dakota, and carries B-2 zoning. Its configuration provides distinct upper- and lower-level areas within a medical office setting, with the lower suite separated from the upper floor by independent access.
The property sits on 0.4132 acres in Dell Rapids, South Dakota, and carries B-2 zoning. Its configuration provides distinct upper- and lower-level areas within a medical office setting, with the lower suite separated from the upper floor by independent access.
Key Highlights
- 2,840‑square‑foot upper level
- 1,460‑square‑foot lower‑level office area
- Separate access for the lower 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
Location Intelligence
Trade Area within ½ mile
270
Businesses Nearby
Under-served
Demand for This Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-level building with separately accessed office space and an existing year-to-year lease.
Where is this medical office space located?
The property is located at 108 W 4th 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: 2,840‑square‑foot upper level; 1,460‑square‑foot lower‑level office area; Separate access for the lower level
