Retail Center on Western
For Sale
$6,600,000
1600 South Western Avenue, Sioux Falls, SD 57105
Retail center with high-traffic location and on-site parking.
Property Size44,149 SF
Days on Market196
Property Features for 1600 South Western Avenue
General Information
Standard status
Active
Size
44,149 SF
Property subtype
Retail
Building Details
Building Size
44,149 SF
Year Built
1955
Listing Agency:
NAI Sioux Falls
(605) 261-2777
Listed By:
Michael Martin, CCIM · License #16008
Source:
Siouxfallscommercial
Added: Jan 27
Changed: Aug 8
Last Checked: Apr 5 at 11:53PM
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 NAI Sioux Falls
Investment Insights
Based on property information with market context.
This retail center is located on Western Avenue in Sioux Falls. The property features paved, on-site parking. It benefits from a high-traffic location and a stable presence within the central Sioux Falls neighborhood, surrounded by great neighborhood tenancy.
Key Highlights
- High‑traffic location on Western Avenue offers excellent visibility.
- Stable presence in Central Sioux Falls.
- Great neighborhood tenancy.
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
$511,775
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
7.75%
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%
$10,235,500
$10.2M
Cap Rate 7%
$7,311,071
$7.3M
Cap Rate 9%
$5,686,389
$5.7M
Market Conditions
NOI Build-Up for 44,149 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
$794.7K $18.00/SF
− Vacancy
−$63.6K −$1.44/SF
EGI
$731.1K $16.56/SF
− OpEx
−$219.3K −$4.97/SF
NOI
$511.8K $11.59/SF
Area
Sioux Falls, SD
Vacancy
8.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$10,235,500
Cap Rate 7%
$7,311,071
Cap Rate 9%
$5,686,389
Alternative Uses
Best Use
Retail
$7.31M
$6.40M – $8.53M
NOI $511,775 @ 7.0% cap · market cap 7.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.99M
$10.49M – $13.99M
NOI $839,184 @ 7.0% cap · market cap 12.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,704
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 57105, SD
22,635
Population
10,550
Households
2.1
Avg Household Size
36
Median Age
44%
College-Educated
97%
High-School Grad
7.5 sq mi
ZIP Area
3,018
Density / Sq Mi
$74,066
Median Household Income
$43,271
Median Earnings
$956
Median Rent
$247,900
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Park Ridge Shopping Center — 1714 S Western Ave, Sioux Falls, SD 57105
Frequently Asked Questions
What type of property is this?
Shopping center - Retail center with high-traffic location and on-site parking.
Where is this shopping center located?
The property is located at 1600 South Western Avenue Sioux Falls, SD.
What is the asking price?
The asking price for this property is $6,600,000.
What are key features of this property?
This property features: High‑traffic location on Western Avenue offers excellent visibility.; Stable presence in Central Sioux Falls.; Great neighborhood tenancy.
