Brick Shell Flex and Industrial
For Sale
Contact for pricing
114 S Reid St, Sioux Falls, SD 57103
Stand-alone building with 2-foot thick brick exterior walls and a second floor ready for flexible commercial use.
Property Size3,109 SF
Price / SF$287.87
Days on Market754
Property Features for 114 S Reid St
General Information
Standard status
Active
Size
3,109 SF
Property subtype
INDUSTRIAL
Building Details
Year Built
1910
Stories
2
Construction
brick
Listing Agency:
Bender Commercial
(605) 336-7600
Listed By:
Nick Gustafson · License #12071
(605) 201-2809
Source:
Moodyscre
Added: Aug 23, 2024
Changed: Sep 12
Last Checked: Sep 15 at 4:37AM
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 Bender Commercial
Investment Insights
Based on property information with market context.
This stand-alone building was originally constructed in 1910 as a locomotive boiler repair facility and features impressive 2-foot thick brick exterior walls. The shell design provides flexibility for a range of potential uses and redevelopment. A second floor exists but is not included in the stated square footage, offering additional space that could support living or retail/office concepts, supported by exceptional side wall height.
The property is located just south of 8th & Railroad and the Lumber Exchange Building in Sioux Falls, SD. It sits just west of a planned railyard site development and south of an announced Riverline District, supporting conversations around redevelopment.
The ownership group is open to redevelopment discussions, and a negotiable build-out allowance may be available from the landlord.
The property is located just south of 8th & Railroad and the Lumber Exchange Building in Sioux Falls, SD. It sits just west of a planned railyard site development and south of an announced Riverline District, supporting conversations around redevelopment.
The ownership group is open to redevelopment discussions, and a negotiable build-out allowance may be available from the landlord.
Key Highlights
- Stand‑alone building originally built in 1910 as a locomotive boiler repair facility
- 2‑foot thick brick exterior walls
- Includes a second floor (not included in SF) with exceptional side wall height for potential living, retail, or office use
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
$31,913
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
3.57%
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%
$638,260
$638.3K
Cap Rate 7%
$455,900
$455.9K
Cap Rate 9%
$354,589
$354.6K
Market Conditions
NOI Build-Up for 3,109 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
$52.2K $16.80/SF
− Vacancy
−$3.1K −$1.01/SF
EGI
$49.1K $15.79/SF
− OpEx
−$17.2K −$5.53/SF
NOI
$31.9K $10.26/SF
Area
Sioux Falls, SD
Vacancy
6.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
35.00%
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%
$638,260
Cap Rate 7%
$455,900
Cap Rate 9%
$354,589
Alternative Uses
Best Use
Flex RnD
$455.9K
$398.9K – $531.9K
NOI $31,913 @ 7.0% cap · market cap 3.57%
Second Best
Industrial
$303.6K
$265.7K – $354.3K
NOI $21,255 @ 7.0% cap · market cap 2.37%
Theoretical Best
Office A
$844.2K
$738.7K – $984.9K
NOI $59,096 @ 7.0% cap · market cap 6.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,684
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 57103, SD
36,069
Population
15,326
Households
2.4
Avg Household Size
37
Median Age
33%
College-Educated
91%
High-School Grad
9.5 sq mi
ZIP Area
3,797
Density / Sq Mi
$73,945
Median Household Income
$43,661
Median Earnings
$938
Median Rent
$244,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Midwest region
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- CBM Correctional Food Services — 500 N Minnesota Ave, Sioux Falls, SD 57104
Frequently Asked Questions
What type of property is this?
Flex space - Stand-alone building with 2-foot thick brick exterior walls and a second floor ready for flexible commercial use.
Where is this flex space located?
The property is located at 114 S Reid St Sioux Falls, SD.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Stand‑alone building originally built in 1910 as a locomotive boiler repair facility; 2‑foot thick brick exterior walls; Includes a second floor (not included in SF) with exceptional side wall height for potential living, retail, or office use
