Sioux Falls Office
For Sale
Contact for pricing
112 S Dakota Ave, Sioux Falls, SD
Updated office building with heated parking garage and surface parking.
Property Size6,800 SF
Lot Size0.51 Acres
Price / SF$319.85
Days on Market452
Property Features for 112 S Dakota Ave
General Information
Standard status
Active
Size
6,800 SF
Lot size
0.51 Acres
Property subtype
OFFICE
Listing Agency:
Lloyd Companies - Corporate
(605) 323-2820
Listed By:
Kristen Zueger, SIOR
(605) 376-1903
Source:
Moodyscre
Added: Jun 16, 2025
Changed: Aug 10
Last Checked: Sep 9 at 4:35PM
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 Lloyd Companies - Corporate
Investment Insights
Based on property information with market context.
The property features a main floor with a lobby including a gas fireplace, a reception area, two open office spaces, restrooms, a large executive office, and an expansive executive conference room. The lower level, accessible from the main floor, provides a finished break area, a tech room, an open office area, glass overhead doors for flexible meeting room configurations, and a lounge area. The building includes a large 17,863 square foot indoor heated parking garage with 30 spaces and 45 surface parking stalls. The property presents an opportunity to generate additional income from parking rentals to nearby businesses. Some parking stalls are committed for a period of time. Built in 1966, the property was updated in 1977, 2012, 2014, 2020, and 2024. The property size is 6,800 square feet and is located in Sioux Falls, SD.
Key Highlights
- Large 17,863 SF indoor heated parking garage with 30 spaces.
- Opportunity to generate additional income from parking rentals.
- Tastefully updated in 1977, 2012, 2014, 2020, and 2024.
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
$91,035
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
4.19%
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%
$1,820,700
$1.8M
Cap Rate 7%
$1,300,500
$1.3M
Cap Rate 9%
$1,011,500
$1.0M
Market Conditions
NOI Build-Up for 6,800 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
$142.8K $21.00/SF
− Vacancy
−$21.4K −$3.15/SF
EGI
$121.4K $17.85/SF
− OpEx
−$30.3K −$4.46/SF
NOI
$91.0K $13.39/SF
Area
Sioux Falls, SD
Vacancy
15.00%
Lease Rate
$21.00 /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%
$1,820,700
Cap Rate 7%
$1,300,500
Cap Rate 9%
$1,011,500
Alternative Uses
Best Use
Office B
$1.30M
$1.14M – $1.52M
NOI $91,035 @ 7.0% cap · market cap 4.19%
Second Best
Retail
$1.13M
$985.3K – $1.31M
NOI $78,826 @ 7.0% cap · market cap 3.62%
Theoretical Best
Office A
$1.85M
$1.62M – $2.15M
NOI $129,254 @ 7.0% cap · market cap 5.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
2,595
Businesses Nearby
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Updated office building with heated parking garage and surface parking.
Where is this office building located?
The property is located at 112 S Dakota Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $2,175,000.
What are key features of this property?
This property features: Large 17,863 SF indoor heated parking garage with 30 spaces.; Opportunity to generate additional income from parking rentals.; Tastefully updated in 1977, 2012, 2014, 2020, and 2024.
