Retail Building with
For Sale
$300,000
116 SW 3rd Avenue, Aberdeen, SD 57401
COMMERCIAL - Aberdeen, SD
Property Size2,881 SF
Price / SF$104.13
Days on Market59
Property Features for 116 SW 3rd Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Aberdeen - City
Standard status
Active
Size
2,881 SF
Taxes and HOA fees
Tax Year
2024
Tax Description
LT 7-10 BK ORIGINAL PLAT EX H1 INC V/A
Tax Annual Amount
9432
Legal Description
LT 7-10 BK ORIGINAL PLAT EX H1 INC V/A
Amenities
ATM
Building Details
Year built
1972
Listing Agency:
Dakota Plains Real Estate & Development
(605) 225-1800
Listed By:
Robin (Rob) K Johnson · License #15391
(605) 225-1800
Added: Jun 22
Changed: Aug 18
Last Checked: Aug 19 at 12:06AM
MLS# 25-355
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.
Built in 1972, this standalone 2,881-square-foot retail building combines an adaptable interior with a multiple-lane drive-through and more than one access point. The configuration supports a range of retail or professional office applications, with an ATM remaining in place.
The property occupies a signalized corner in Aberdeen’s downtown core. Its location provides a prominent setting for a customer-facing operation, while the drive-through component adds flexibility for uses requiring convenient vehicle access.
The property occupies a signalized corner in Aberdeen’s downtown core. Its location provides a prominent setting for a customer-facing operation, while the drive-through component adds flexibility for uses requiring convenient vehicle access.
Key Highlights
- 2,881 SF standalone retail building
- Multiple‑lane drive‑through configuration
- Multiple access points
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
$25,929
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
8.64%
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%
$518,580
$518.6K
Cap Rate 7%
$370,414
$370.4K
Cap Rate 9%
$288,100
$288.1K
Market Conditions
NOI Build-Up for 2,881 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
$43.2K $15.00/SF
− Vacancy
−$8.6K −$3.00/SF
EGI
$34.6K $12.00/SF
− OpEx
−$8.6K −$3.00/SF
NOI
$25.9K $9.00/SF
Area
Brown County, SD
Vacancy
20.00%
Lease Rate
$15.00 /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%
$518,580
Cap Rate 7%
$370,414
Cap Rate 9%
$288,100
Alternative Uses
Best Use
Office B
$370.4K
$324.1K – $432.2K
NOI $25,929 @ 7.0% cap · market cap 8.64%
Second Best
Retail
$317.7K
$278.0K – $370.6K
NOI $22,238 @ 7.0% cap · market cap 7.41%
Theoretical Best
Healthcare Medical
$503.0K
$440.2K – $586.9K
NOI $35,212 @ 7.0% cap · market cap 11.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
824
Businesses Nearby
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 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?
Retail space - Standalone retail space offers drive-through lanes, multiple access points, and office or retail use potential.
Where is this retail space located?
The property is located at 116 SW 3rd Avenue Aberdeen, SD.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: 2,881 SF standalone retail building; Multiple‑lane drive‑through configuration; Multiple access points
